Unisource Hydro Carbon Services Private Limited as Anr. Vs Union of India as Ors. (Calcutta High Court)
Calcutta High Court has stayed further proceedings in a reassessment case involving Unisource Hydro Carbon Services Private Limited & Anr. Vs Union of India & Ors. The decision, delivered in an intra-Court appeal, overturns a single bench’s refusal to grant an interim stay on an order passed under Section 148A(d) of the Income Tax Act, 1961, for the assessment year 2018-19.
Unisource Hydro Carbon Services Private Limited had challenged the Section 148A(d) order, dated August 30, 2024, on various grounds. The single bench had initially deemed the matter unsuitable for immediate decision without affidavits, directing their submission. However, the respondent-department reportedly failed to file its affidavit within the stipulated time.
The High Court emphasized that without an interim order, the writ petition itself risked becoming infructuous as reassessment proceedings could conclude. It noted that orders under Section 148A(d) lack statutory appeal or revision remedies, necessitating recourse to the High Court under Article 226 of the Constitution of India. The court also highlighted existing judicial precedents that advocate for reassessment to be initiated with “utmost care and caution,” typically based on tangible material rather than a mere change of opinion. In this instance, the petitioners alleged a violation of natural justice principles, a matter the court deemed crucial for examination after the department’s response.
