Ojaswini Retailers Private Limited & anr. Vs Union of India & Ors. (Calcutta High Court)
Calcutta High Court quashes Section 148A(3) order and Section 148 notice for non-consideration of assessee’s replies
The Calcutta High Court considered a writ petition challenging the order dated 30 June 2025 passed under Section 148A(3) of the Income Tax Act, 1961, and the consequential notice issued under Section 148 for Assessment Year 2020-21. The principal issue before the Court was whether the Assessing Officer had validly formed the opinion that income had escaped assessment without considering the replies and supporting materials submitted by the petitioners, and whether the principles of natural justice had been violated.
The petitioners contended that the impugned order suffered from a legal infirmity because it was passed without considering their replies dated 14 April 2025 and 19 June 2025, which were submitted in response to the show cause notice issued under Section 148A(1). They also challenged the Assessing Officer’s finding that transactions with M/s. Fantastic Hirise Private Ltd. and M/s. Foremost Enterprise Private Ltd. lacked commercial substance, describing the conclusion as arbitrary, perverse, and unsustainable. According to the petitioners, they had submitted banking statements and other supporting documents, and the transactions had been carried out through legitimate banking channels. They argued that mere routing of funds on the same day could not, by itself, justify a conclusion that the transactions constituted accommodation entries or money laundering.
