2021 (11) TMI 1156 - HC - Income Tax

Consecutive reopening assessment proceedings - second notice under the same section in respect of the same assessment year - non-application of mind - HELD THAT - As second notice under the same section in respect of the same assessment year is totally in non-application of mind and such action on the part of the assessing officer concerned has caused harassment to the petitioner and created the scope of litigation and petitioner had to bear unnecessary cost of litigation and at the same time department has also to incur cost of unnecessary litigation from public exchequer for defending litigation arose due to non-application of mind by the assessing officer concerned. Considering all there is no need of keeping the writ petition pending or calling for any affidavit since there is no scope to contradict the allegation of the petitioner as appears from records. The impugned notice u/s 148 of the Act is accordingly set aside. Decided in favour of assessee.

Summary

Issues:
Challenging a notice under Section 148 of the Income Tax Act, 1961 for assessment year 2013-14 due to prior final assessment order issued under Section 147/143(3) of the Act.

The judgment by the High Court of Calcutta addressed the challenge of a petitioner against a notice dated 23rd June, 2021, issued under Section 148 of the Income Tax Act, 1961, for the assessment year 2013-14. The petitioner contended that the notice was illegal as a final assessment order under Section 147/143(3) of the Act had already been passed on 18th June, 2019. The court noted the petitioner's grievance and observed that issuing a second notice under the same section for the same assessment year indicated a lack of application of mind by the assessing officer. The court criticized this action, highlighting the harassment caused to the petitioner and the unnecessary costs incurred by both parties due to the officer's oversight.

The court, after hearing arguments from both sides, concluded that there was no need to prolong the matter as the petitioner's allegations were supported by the records. Consequently, the court set aside the impugned notice dated 23rd June, 2021, under Section 148 of the Act. The judgment directed the Registrar, Original Side, to transmit the order to the Principal Chief Commissioner, Kolkata. The writ petition, identified as WPO 825 of 2021, was thereby disposed of, bringing the legal proceedings to a close.