SCN issued under Income Tax Act due to Failure on part of Accountant: Calcutta HC Dismisses Challenge Against order passed u/s 144 B on availability of Statutory Remedy [Read Order]

Jayashree Finvest Private Limited, the petitioner filed the writ petition, challenging an order dated 18th February, 2025 passed under Section 147 read with Section 144B of the Income Tax Act, 1961 (the said Act’) for the assessment year 2016-17.

Mr. Lakhotia, Advocate representing the petitioner submitted that in the instant case, although the petitioner had relied on several documents, such documents had not been considered by the Faceless Assessing Unit. This apart, according to him, although a notice of show cause was issued by reason of failure on the part of the petitioner’s accountant, such show cause notice could not be responded to.

A single bench of Justice Raja Basu Chowdhury found that the aforesaid order passed under Section 147 read with 144B of the said Act is an appealable order. The petitioner has ample opportunity to raise all questions which the petitioner seeks to raise in the instant petition before the appellate authority. Statute requires the appellate authority to consider all points raised by the petitioner in the appeal.

The bench further held that “Dismissal of the aforesaid writ petition shall, however, not stand in the way of the petitioner for filing an appeal.”

However, considering the fact that this matter has been pending before the Court since 6th March, 2025, the bench viewed that in the event the petitioner prefers an appeal within a period of four weeks from date, the appellate authority shall hear out and dispose of the appeal on merits by taking note of all points raised by the petitioner, subject to compliance of all formalities by the petitioner.M/S. JAYASHREE FINVEST PRIVATE LIMITED vs THE INCOME TAX OFFICER, WARD 6(2), KOLKATA & ORS.

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