Case Law Details
Anand Kumar Agarwal Vs Union of India & Ors. (Calcutta High Court)
In the case of Anand Kumar Agarwal Vs. Union of India & Ors., the Calcutta High Court addressed the validity of a notice issued under Section 148 of the Income Tax Act, 1961. The petitioner argued that the notice, issued by the jurisdictional assessing officer, violated Section 151A and the notification dated 29th March 2022. The petitioner contended that notices under Section 148 must follow automated allocation through a faceless mechanism aligned with the risk management strategy under Section 144B. This procedural deviation, according to the petitioner, rendered the notice for the assessment year 2017–2018 invalid.
The court, referencing the judgment in Giridhar Gopal Dalmia Vs. Union of India & Others (2023), noted that similar concerns regarding the jurisdictional officer’s authority to issue notices had led to stays in earlier cases. Considering the prima facie merits of the petitioner’s claim, the court ordered a stay on further actions based on the impugned notice dated 20th August 2024 until the writ petition’s resolution. The Income Tax Department was granted six weeks to file its affidavit-in-opposition, with an additional four weeks allowed for reply. The case underscores the importance of adherence to procedural requirements under the faceless assessment scheme.
Assessee was represented by Advocate Himangshu Kumar Ray
FULL TEXT OF THE JUDGMENT/ORDER OF CALCUTTA HIGH COURT
Affidavit of service filed today in Court is kept with the record.
The Court: Learned Counsel for the petitioner submits that the petitioner challenges the notice issued under Section 148 of the Income Tax Act, 1961 on the ground that the same has been issued by the jurisdictional assessing officer though in terms of Section 151A of the said Act read with the notification dated 29th March, 2022, such notice was required to be issued through the automated allocation, in accordance with the risk management strategy formulated by the Board as referred to Section 148 of the said Act, for issuance of notice, in a faceless manner, to the extent provided in Section 144B of the Act with reference to making assessment or reassessment of the total income or income or loss of the assessee.
Learned Counsel appearing for the Income Tax Department prays leave to file affidavit-in-opposition.
Let affidavit-in-opposition be filed within six weeks from date; reply, if any, within four weeks thereafter.
Taking into consideration the prima facie case as has been made out by the petitioner and the judgment of the Division Bench of this Court presided over by the Hon’ble The Chief Justice in the case of Giridhar Gopal Dalmia Vs. Union of India & Others, 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 20th August, 2024 for the assessment year 2017-2018 till the disposal of the writ petition.
Liberty to mention after expiry of the period for exchange of affidavits.
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