Abul Kalam Vs ACIT (Calcutta High Court)
The Calcutta High Court considered a writ petition filed under Article 226 of the Constitution challenging an assessment order dated 29 December 2019, a demand notice issued under Section 156 of the Income Tax Act, 1961, and a provisional attachment order issued under Section 281B of the Act. The dispute arose in relation to the Assessment Year 2017–18. The petitioner challenged the assessment proceedings and the provisional attachment of his bank account ordered before completion of the assessment.
The petitioner submitted that the assessment proceedings began with a notice issued under Section 143(3) on 13 August 2018. During the course of the assessment, the department raised several queries, to which the petitioner responded on 5 December 2019. A further notice under Section 142(1) was issued on 12 December 2019, and the petitioner submitted a reply on 19 December 2019. Thereafter, a show-cause notice dated 25 December 2019 was issued. Initially, the department proposed to treat an amount of ₹75.4 crore as taxable under Section 28(iv) of the Act. Subsequently, the notice stated that the amount would be taxed under Section 28(ii)(a) of the Act. The petitioner responded to the show-cause notice on 28 December 2019. After considering the reply and granting a hearing, the assessment was completed on 29 December 2019 under Section 143(3), determining the total assessed income at ₹77,61,50,670. A demand of ₹35,95,82,634 was raised and a notice under Section 156 required payment within 30 days. During the pendency of these proceedings, a provisional attachment order dated 26 December 2019 was issued under Section 281B attaching the petitioner’s bank account.
