Case Law Details
Vindya Agencies Private Limited Vs ACIT (Calcutta High Court)
In the case of Vindya Agencies Private Limited Vs ACIT, the Calcutta High Court issued a stay on a notice issued under Section 148 of the Income Tax Act, dated April 22, 2024, concerning the assessment year 2017-18. The petitioner challenged the legality of this notice, arguing that it was issued by the jurisdictional assessing officer in violation of Section 151A of the Income Tax Act and the related scheme notified on March 29, 2022. The petitioner contended that the approval granted under Section 151 was flawed and did not adequately consider their response to the notice under Section 148A(b).
During the proceedings, Mr. Mitra, representing the respondents, sought permission to file an affidavit in opposition. The Court acknowledged the jurisdictional issues raised in the writ petition and scheduled a hearing, allowing the respondents eight weeks to file their opposition affidavit after the annual vacation, with a four-week window for any replies from the petitioner. Given the prima facie case presented by the petitioner and referencing a prior judgment regarding the jurisdictional authority to issue such notices, the Court determined that no further action should be taken based on the April 22 notice until the writ petition is resolved. The Court granted the petitioner liberty to mention the case following the exchange of affidavits, underscoring the importance of adherence to procedural guidelines within the Income Tax framework.
FULL TEXT OF THE JUDGMENT/ORDER OF CALCUTTA HIGH COURT
Challenging the issuance of a Notice under Section 148 of the Income Tax Act, 1961 (hereinafter referred to as the said Act) dated 22nd April, 2024 for the assessment year 2017-18, the instant writ petition has been filed on the ground that the same has been issued by the jurisdictional assessing officer in contravention of the provisions contained in Section 151A of the said Act read with the scheme as referred to thereunder, notified on 29th March, 2022.
2. The petitioner also questions the approval granted under Section 151 of the said Act dated 22nd April, 2024 for the assessment year 2017-18 on the ground that the same is perverse and does not take into consideration the response given by the petitioner to the notice issued under Section 148A(b) of the said Act.
3. Mr. Mitra, learned Advocate enters appearance on behalf of the respondents. He prays for leave to use affidavit-in-opposition.
4. Since the above writ petition raises a jurisdictional issue, the same shall be heard. Let affidavit-in-opposition to the present writ petition be filed within a period of eight weeks after the annual vacation; reply, if any, thereto be filed within four weeks thereafter.
5. Taking into consideration the prima facie case as has been made out by the petitioner and the judgement of the Division Bench of this Court presided over by the Hon’ble the Chief Justice in the case of Girdhar Gopal Dalmia vs. Union of India & Ors., in MAT/1690/2023 on 25th September, 2023, whereby the Hon’ble Division Bench while considering the competence of the jurisdictional assessing officer to issue a notice under Section 148 of the said Act, consequent upon publication of the Scheme vide Notification dated 29th March, 2022, and while admitting the appeal had stayed the said notice, I am of the view that no further steps should be taken by the respondents on the basis of the notice issued under Section 148 of the said Act dated 22nd April, 2024 for assessment year 2017-18 till the disposal of the writ petition.
6. Liberty to mention upon expiry of the period for exchange of affidavits.
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