Mangalkamna Commosale Private Limited Vs ITO (Calcutta High Court)
In this writ petition, the Calcutta High Court examined the validity of an assessment order dated 30 May 2023 passed under Section 147 read with Section 144 of the Income Tax Act, 1961 for AY 2013-14. The petitioner challenged the order on the ground that it was issued in violation of a prior stay order of the High Court. The petitioner pointed out that in an earlier proceeding, the Court had granted a specific stay on 15 March 2023 in WPO 398 of 2023, restraining the Income Tax Department from taking any further steps after the order passed under Section 148A(d) of the Act. Despite this restraint, the reassessment order under Section 147 was still passed on 30 May 2023. During the hearing, counsel for the Income Tax Authority was unable to dispute or contradict the petitioner’s allegation that the assessment order had been issued in spite of the subsisting stay granted by the Court. Considering the records and submissions, the High Court held that the impugned assessment order had been passed contrary to its specific direction restraining further proceedings. Accordingly, the Court quashed the assessment order dated 30 May 2023 and disposed of the writ petition.
