Case Law Details
RPC Commercial LLP Vs ACIT (Calcutta High Court)
RPC Commercial LLP has challenged a notice issued under Section 148 of the Income Tax Act for the assessment year 2015-16 and subsequent proceedings based on that notice. The petitioner argues that the assessing officer’s jurisdiction in issuing the notice is barred by limitation under Section 149(1)(a)/(1)(b) of the Act. The assessing officer justifies the initiation of proceedings based on an instruction issued by the Central Board of Direct Taxes (CBDT). The Calcutta High Court has granted a stay on the proceedings pending the disposal of the writ application.
The petitioner contends that the notice and reassessment proceedings are beyond the six-year limitation period prescribed under the old and new amendment provisions of Section 149 of the Income Tax Act. The assessing officer relies on an instruction from the CBDT to justify the initiation of proceedings. The court finds that the matter needs to be heard on its merits after the exchange of affidavits. It observes that if a stay is not granted at this stage, the petitioner would suffer prejudice. Consequently, the court directs the respondents to file an affidavit-in-opposition, and no further proceedings can take place based on the impugned order until the writ application is disposed of.
The Calcutta High Court has granted a stay on the initiation of reassessment proceedings beyond the six-year limitation period in the case of RPC Commercial LLP vs. ACIT. The court found that the jurisdiction of the assessing officer to issue the notice under Section 148 of the Income Tax Act was barred by limitation. The court directed the respondents to file an affidavit-in-opposition, and no further proceedings can take place based on the impugned order until the writ application is disposed of.
FULL TEXT OF THE JUDGMENT/ORDER OF CALCUTTA HIGH COURT
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