Case Law Details
Gemini Overseas Limited Vs Union of India (Calcutta High Court)
Introduction: Gemini Overseas Limited filed a writ petition challenging the order passed under Section 148A(d) of the Income Tax Act, 1961, for the assessment year 2019-20. The petitioner contended that the order was passed without approval from the “Specified Authority” as required under Section 151(ii) of the Income Tax Act, 1961. The petitioner argued that the approval was obtained from the Principal Commissioner of Income Tax, whereas the specified authority for approval in this case should have been the Principal Chief CIT, as three years had not elapsed from the end of the relevant assessment year on the date of the impugned order.
Analysis: The respondent Income Tax Authority brought to the court’s notice the recent amendment under Section 151 of the Income Tax Act, which clarified the specified authority for approval. The amendment specified that if three years or less had elapsed from the end of the relevant assessment year, the specified authority for approval would be the Principal Commissioner or Principal Director or Commissioner or Director. If more than three years had elapsed, the specified authority would be the Principal Chief Commissioner or Principal Director General or Chief Commissioner or Director General.
The respondent also pointed out the recent amendment in Section 149(1) of the Act, which excluded the time or extended time allowed to the assessee as per show-cause notice issued under clause (b) of section 148A, or the period during which the proceeding under section 148A was stayed by an order or injunction of any court, for the purpose of computing the period of limitation.
Conclusion: After considering the recent amendments and the facts of the case, the court found that the impugned order was passed within three years, taking into account the period allowed to the Assessing Officer under the relevant provisions. Therefore, the Principal CIT, and not the Principal Chief CIT, was the “Specified Authority” for approval in this case, and the assessing officer had rightly obtained approval from the Principal CIT. The court upheld the validity of the impugned order under Section 148A(d) of the Income Tax Act, 1961, and dismissed the writ petition.
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