PCIT-2 Vs Cosmat Traders Pvt. Ltd. (Calcutta High Court)
Summary: The Calcutta High Court dismissed the Revenue’s appeal under Section 260A of the Income Tax Act against the Income Tax Appellate Tribunal, “B” Bench, Kolkata order dated 21st April 2021 in ITA No.457/Kol/2020 for assessment year 2012-13. The substantial questions concerned the Assessing Officer’s jurisdiction to issue notice under Section 143(2), the applicability of Section 292BB where the assessee participated in assessment proceedings without challenging jurisdiction, and the assessee’s obligation concerning its address in the PAN database. The Court upheld the Tribunal’s decision, relying on Principal Commissioner of Income Tax vs. Oberoi Hotels Pvt. Ltd. [2018] 409 ITR 132 (Cal), Assistant Commissioner of Income Tax & Anr. vs. Hotel Blue Moon [2010] 321 ITR 362 (SC), and the other decisions referred to in the judgment. The Court held that the requirement of notice under Section 143(2) could not be dispensed with and that Section 292BB had no manner of operation in the circumstances. It also rejected the Revenue’s submission that participation in assessment proceedings prevented the assessee from raising the jurisdictional issue, observing that there cannot be any estoppel against the statute and that the assessee had obtained leave to raise additional grounds before the Tribunal. The Revenue appeal (ITAT/78/2022) and connected stay application (IA No.GA/2/2022) were dismissed.
Decision of the Calcutta High Court
The appeal filed by the Revenue under Section 260A of the Income Tax Act was directed against the order dated 21st April, 2021 passed by the Income Tax Appellate Tribunal, “B” Bench, Kolkata in ITA No.457/Kol/2020 for the assessment year 2012-13.
