Orissa HC Stays Sec 148A(d) Order Due to Missing Notice Info of notice issuance

Nirmal Kumar Kar Vs ITO ( Orissa High Court)

In the case Nirmal Kumar Kar Vs ITO, the Orissa High Court issued a stay on income tax proceedings initiated under Section 148A(d) of the Income Tax Act, 1961, following a claim by the petitioner that there was no record of a notice issued under Section 148A(b) as required. The petitioner, represented by senior advocate Mr. Sahoo, contended that although the Income Tax Department’s online portal showed a notice under Section 148 as of March 27, 2023, it lacked any reference to the issuance of a prior notice under Section 148A(b), which was purportedly dated March 2, 2023. Arguing for immediate intervention, Mr. Sahoo sought a stay on the proceedings, citing procedural lapses by the revenue authorities. Representing the revenue, Junior Standing Counsel Mr. Kedia countered this claim, asserting that the notice under Section 148A(b) was indeed issued but requested an adjournment to provide supporting evidence. Considering the petitioner’s argument based on portal disclosures, the Court granted a temporary stay on the proceedings until the next scheduled hearing on November 13, 2024, where further deliberations on the matter will occur. This stay order reflects the court’s intent to ensure procedural compliance, specifically in the issuance and documentation of notices critical to tax proceedings under Sections 148 and 148A of the Income Tax Act.

FULL TEXT OF THE JUDGMENT/ORDER OF ORISSA HIGH COURT

1. Mr. Sahoo, learned senior advocate appears on behalf of petitioner-assessee and submits, impugned is order dated 25^th March, 2023 under section 148-A(d) in Income Tax Act, 1961 and proceedings initiated pursuant thereto. Drawing attention to print out of information displayed in the portal, he demonstrates that as on 27^th March, 2023 there is information reflected of issuance of notice under section 148. There is no information regarding issuance of notice under 148-A(b) said to be dated 2^nd March, 2023. He seeks interference, interim at this stage.

2. Kedia, learned advocate, Junior Standing Counsel appears on behalf of revenue and submits, the notice was duly issued. He seeks adjournment to demonstrate so.

3. Relying on disclosure by print out of the portal we direct stay of proceeding initiated pursuant to impugned order till next date of hearing.

4. List on 13^th November, 2024.