Healing Touch Hospital Vs PCIT (Patna High Court)
Limitation Plea Rejected-PCIT’s Nod Sufficient: High Court Clears Reopening Beyond Assessee’s Technical Objections– Assessee’s Request for Hearing Extends Time u/s 148A -Patna HC Upholds Notice u/s 148
Patna High Court dismissed the writ petition filed by a Hospital, a partnership firm, challenging the notice issued u/s 148 & order passed u/s 148A(d). Assessee contended that the reassessment proceedings were barred by limitation, that valid sanction from the competent authority u/s 151 was not obtained, & that the statutory procedure had not been complied with.
The Court, however, upheld the validity of the Department’s action.
A survey u/s 133A was conducted in the premises of the firm wherein documents indicated receipts of about Rs.1.72 crore for AY 2020-21 as against declared receipts of only Rs.23.37 lakh. Based on this information, AO issued notice u/s 148A(b) dated 29.03.2024 followed by further communications. Assessee submitted replies & specifically requested a personal hearing. AO accordingly fixed the hearing on 06.08.2024 & finally passed an order u/s 148A(d) on 25.09.2024 along with notice u/s 148, after obtaining sanction from PCIT.
Assessee argued before the Court that the order u/s 148A(d) ought to have been passed latest by 31.07.2024 since the reply was filed on 03.06.2024. According to Assessee, the personal hearing fixed beyond July amounted to an impermissible extension of time. It was further urged that since more than three years had elapsed from the end of AY 2020-21, sanction could have been granted only by the Principal Chief Commissioner or DGIT (Inv.) & not by PCIT. It was also contended that sanction was accorded mechanically without application of mind.
