Saroj Kumar Sahoo Vs National Faceless Assessment Centre (Orissa High Court)
Orissa High Court held that post search operation all pending assessments/reassessments doesn’t not automatically get abated as provisions of section 158BA(2) of the Income Tax Act. Matter must specifically fall within Block Assessment Scheme for abatement. However, writ dismissed as power under Article 226 not invoked.
Facts- Assailing the legality and propriety of Assessment Order dated 17.03.2025 passed in the Assessment Unit, Income Tax Department u/s. 143(3) read with Section 260 and Section 144B of the Income Tax Act, 1961 pertaining to the Assessment Year 2022-23, as also consequential further orders imposing penalties by initiating proceedings u/s. 270A, Section 271A, Section 271B and Section 272A(l)(d) read with Section 274, the petitioner has approached this Court by way of filing this writ petition craving to invoke extraordinary jurisdiction under Articles 226 and 227 of the Constitution of India.
A seminal issue whether the Assessing Officer has jurisdiction to pass the Assessment Order dated 17.03.2025 as also the consequential orders imposing penalties inasmuch as these orders are passed contrary to avowed purport of sub-section (2) of Section 158BA of the Income Tax Act, 1961.
Conclusion- Held that in absence of material to demonstrate that the search of petitioner (individual status) under Section 132 of IT Act was conducted with respect to his ―total undisclosed income” as envisaged under Chapter XIV-B for the Assessment Year falling within the ken of ―block period”, this Court is afraid to accede to the contentions of the petitioner and relief claimed in the writ petition merely based on provision contained in sub-section (2) of Section 158BA.
