Shiv Kumar Saraf Vs Principal Chief Commissioner of Income Tax (Calcutta High Court)
The Calcutta High Court examined a writ petition challenging an assessment order for the assessment year 2019-20. This was the second writ litigation initiated by the petitioner. The first writ petition, WPO 168 of 2024, assailed an assessment order dated February 1, 2024, issued under Sections 147 and 144B of the Income Tax Act, 1961, on the ground of violation of principles of natural justice. The High Court set aside that order on March 22, 2024, and remanded the matter to the Assessing Officer (AO) to pass a fresh assessment order after providing an opportunity for personal hearing via video conferencing. Pursuant to this direction, the AO passed a fresh assessment order dated June 10, 2024, under Section 147 read with Sections 260 and 144B, which forms the subject matter of the present writ petition.
The petitioner contended that the assessment proceedings should have been initiated under Section 153C of the Income Tax Act, 1961, rather than under Section 147. The petitioner argued that since the impugned order referred to search and survey operations conducted at various finance brokers’ locations, the provisions of Section 153C were applicable. Section 153C allows reassessment of a person other than the one searched only if both the AO of the searched person and the AO of the non-searched person are satisfied that (i) any seized property or documents pertain to the non-searched person, and (ii) the non-searched person’s income can be determined from such material. The petitioner asserted that the Revenue had failed to comply with these requirements, rendering the proceedings under Section 147 invalid.
