2022 (4) TMI 1644 - HC - Income Tax

Validity of Reopening of assessment u/s 147 as barred by limitation - non-compliance with statutory formalities u/s 148A - HELD THAT - This case clearly falls under the amended Act relating to proceedings u/s 147 of the Act under which issuance of notice u/s 148A is mandatory before issuing any notice under section 148 of the amended Act which has not been complied with in this case. Considering the above facts and circumstances of the case and in view of the order of this Court in the case of Bagaria Properties and Investment Private Limited Anr. v. Union of India ORs 2022 (1) TMI 742 - CALCUTTA HIGH COURT and also in the case of Monoj Jain v. Union of India 2022 (1) TMI 741 - CALCUTTA HIGH COURT the impugned notice u/s 148 of the Act and all subsequent proceedings are not sustainable in law and the same are quashed. Quashing of the impugned notice and proceeding will not debar the respondent-authority concerned to issue any fresh notice in future in accordance with law.

Summary

The High Court of Calcutta quashed an impugned notice under section 148 of the Income Tax Act, 1961 due to non-compliance with statutory formalities under section 148A of the Act. The court held that the notice and subsequent proceedings were not sustainable in law. The respondent-authority can issue a fresh notice in the future in accordance with the law. Case citation: WPO No. 1706 of 2022.