Calcutta HC Dismisses Writ Petition as Income Tax Dept Drops Demand u/s 143

By CA Sandeep Kanoi Income Tax Judiciary September 7, 2025

TaxGuru Citation: 2025 taxguru.in 7037
Case Name: Nitin Chamaria Vs Union of India & Ors (Calcutta High Court)
Appeal Number: Only available for paid members
Date of Judgement/Order: Only available for paid members
Courts: All High Courts, Calcutta High Court

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Nitin Chamaria Vs Union of India & Ors (Calcutta High Court)

Calcutta High Court disposed of a writ petition after the Income Tax Department decided not to pursue the demand raised under Section 143(1) for AY 2018-19, effectively closing the matter.

Calcutta High Court Dismisses Writ Petition Against Tax Demand

The Calcutta High Court has dismissed a writ petition filed by Nitin Chamaria challenging a tax demand from the Income Tax Department for the assessment year 2018-2019. The department informed the court that it had reviewed the matter based on a previous court order and decided not to pursue the demand, as it was not considered valid under Section 143(1) of the Income Tax Act, 1961. Citing a communication dated July 25, 2025, the department’s lawyer stated that since the demand was deemed unnecessary, nothing further remained in the petition. As a result, the court formally recorded that the department had no interest in pursuing the demand and disposed of the writ petition.

FULL TEXT OF THE JUDGMENT/ORDER OF CALCUTTA HIGH COURT

1. The affidavit-of-service filed in Court today be taken on record.

2. Having heard the learned advocates appearing for the respective parties though the writ petition has been filed, inter alia, challenging the demand raised by the respondents in respect of the assessment year 20182019, however, Mr. Sharma, learned advocate appearing on behalf of the Income Tax Department by placing before this Court the communication dated 25th July, 2025, which is taken on record, would submit that in terms of the order passed in WPA 17221 of 2022 dated 10th August, 2022, the department had reviewed the matter. The above communication would show that the department had concluded that the demand raised under Section 143(1) of the Income Tax Act, 1961 (hereinafter referred to as the “said Act”) in the instant case was not called for. As such according to Mr. Sharma since the department is not interested to pursue the demand as communicated vide letter dated 28t^hFebruary, 2020 and 1st October, 2024, I am of the view that nothing survives in the writ petition.