Case Law Details
P A Polymer Vs ITO (Gujarat High Court)
The reassessment notice issued under Section 148 of the Income Tax Act, 1961, concerning the information of alleged bogus political donations, has been challenged on the grounds of exceeding the limitation period. The High Court has instructed the Assessing Officer (AO) to refrain from passing the assessment order.
Analysis-
In a recent court hearing, P A Polymer took on the Income Tax Office (ITO) at the Gujarat High Court over a reassessment notice issued under Section 148 of the Income Tax Act, 1961. The crux of the issue centered on the information of alleged bogus political donations, challenged on the ground of limitation.
The main contention brought forward by P A Polymer’s advocate, Mr. Vijay H. Patel, was that the respondent (ITO) issued the notice under Section 148A(b) of the Income Tax Act, 1961, after the limitation period prescribed under Section 149 of the Act. In effect, this would render the ITO without jurisdiction to proceed further. Further, it was submitted that an order was already passed under Section 148A(d) of the Act.
Given these submissions, the court issued a notice to the respondents, with the hearing set for 08.08.2023. The court gave the respondent authority permission to proceed further against P A Polymer, but with a crucial stipulation: the final order of Assessment should not be passed until the next date of hearing.
FULL TEXT OF THE JUDGMENT/ORDER OF GUJARAT HIGH COURT
Heard learned advocate Mr. Vijay H. Patel for the petitioner. It is mainly contended that the respondent issued a notice under Section 148A(b) of the Income Tax Act, 1961 after a period of limitation prescribed under Section 149 of the Act, and therefore, the respondent has no jurisdiction to proceed further. It is submitted that now the impugned order is passed under Section 148A(d) of the Act.
In view of the aforesaid submissions, issue notice to the respondents returnable on 08.08.2023. Till the next date of hearing, it is open for the respondent authority to proceed further against the petitioner, however, final order of Assessment shall not be passed.
