Babylon Trading & Investment Pvt. Ltd. Vs Union of India & Ors. (Calcutta High Court)
In Babylon Trading & Investment Pvt. Ltd. Vs Union of India & Ors., the petitioner challenged an order dated December 30, 2024 passed under Section 148A(d) of the Income Tax Act, 1961, along with the consequential notice under Section 148 for Assessment Year 2015–16.
The petitioner contended that the impugned order and notice suffered from serious jurisdictional errors. It was argued that the approval granted under Section 151 for issuance of notice under Section 148 had never been served upon the petitioner. In support, reliance was placed on earlier orders of a Coordinate Bench of the Court, which had stayed similar notices after considering judgments of the Delhi High Court and the Supreme Court in the Tia Enterprises matter.
It was further submitted that the reassessment proceeding for AY 2015–16 ought to have been initiated by March 31, 2022 in terms of Section 149. However, the notice under Section 148A(b) was issued on November 6, 2024, and the order under Section 148A(d) as well as the reopening notice under Section 148 were issued on December 30, 2024, which were beyond the statutory time limit.
The petitioner also argued that the impugned order and notice were issued by the Jurisdictional Assessing Officer instead of the Faceless Assessment Unit as required under Section 151A. Additionally, the petitioner’s request for cross-examination of witnesses, whose statements were relied upon in passing the order under Section 148A(d), had not been considered.
