IVL Dhunseri Petrochem Industries Private Limited Vs Union of India & Ors. (Calcutta High Court)
The Calcutta High Court examined a writ petition challenging a notice issued under section 148 of the Income-tax Act, 1961, initiating reassessment proceedings for Assessment Year 2021-22. The petitioner contended that the notice was issued without any information suggesting escapement of income, which is a mandatory jurisdictional requirement. After receiving the reassessment notice, the petitioner sought disclosure of the information forming the basis of the notice and also raised objections to its issuance. According to the petitioner, neither the requested information was supplied nor were the objections addressed by the Assessing Officer.
The petitioner further pointed out that prior to issuing the reassessment notice, the Revenue had issued a notice under section 133(6) seeking specific details regarding interest from deposits and interest reflected in the income tax return. The petitioner submitted a detailed reply to this notice along with supporting documents. However, the replies were allegedly not considered at all before the reassessment notice was issued. It was argued that such non-consideration amounted to non-application of mind, rendering the reassessment proceedings without foundation.
Reliance was placed on various judicial precedents to argue that objections to reassessment notices must be disposed of before proceeding further, and that the principles laid down by the Supreme Court in GKN Driveshafts (India) Ltd. apply even in cases where section 148A procedures are not mandatorily applicable. The petitioner asserted that failure to deal with objections violates settled legal principles governing reassessment.
