Case Law Details
Rachna Singhi Vs ITO (Calcutta High Court)
Introduction: The Calcutta High Court, in the recent case of Rachna Singhi Vs Income Tax Officer (ITO), highlighted the implications of Section 148A(d) of the Income Tax Act, 1961. The Court ruled that an order under this section is not a final assessment order and does not result in any income tax demand.
Analysis: Rachna Singhi, the petitioner, challenged the order under Section 148A(d) of the Income Tax Act, 1961, relating to the assessment year 2019-20. She expressed dissatisfaction with the reasoning provided by the respondent, the ITO, in his order. However, the Court observed that the order was neither in violation of natural justice principles nor procedural irregularities, nor was it contrary to any specific Act provisions.
The High Court held that the sufficiency or reasonableness of the reasoning in an order under Section 148A(d) cannot be challenged in the writ court when the petitioner has already been given the opportunity to file an objection. Even though the Assessing Officer may have arrived at a different finding and conclusion, the petitioner still has ample scope in the proceedings following the Section 148 notice to make her case.
Furthermore, the Court opined that an order under Section 148A(d) is neither a final assessment order nor does it create any tax demand.
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