Case Title: Champa Impex Private Limited Versus Union Of India And Others
Case No.: A.P.O. NO. 124 OF 2023
Decided On: 17.01.2024
Coram: Hon’ble Mr. Chief Justice T.S. Sivagnanam And Hon’ble Mr. Justice Supratim Bhattacharya
Facts of the Case:
In an intra-court appeal stemming from a writ petition challenging an Income Tax Act order, the appellant contends that seeking information for multiple assessment years is unwarranted. They argue against separate information for 2018-2019 due to a pending appeal and claim the notice under Section 148A(b) is unmodifiable, citing time-bar issues. The respondent clarifies that the notice pertains only to 2016-2017. The court dismisses the appeal, upholding the re-assessment order, and directs the appellant’s active participation without adjournments.
Legal Provisions
The legal provisions involved in the case are primarily related to Section 148A of the Income Tax Act, 1961. Section 148A, inserted by the Finance Act, 2021, deals with the procedure for conducting an inquiry and providing an opportunity to the assessee before issuing a notice under Section 148. The section outlines the steps the assessing officer must follow, including conducting an inquiry (if required), issuing a show cause notice, considering the assessee’s reply, and obtaining prior approval for issuing the notice under Section 148. In this case, the appellant challenges the order under Section 148A(d) regarding a notice issued for the assessment year 2016-2017.
Issues
The case centers on challenges to the initiation of re-assessment under Section 148A(b) of the Income Tax Act, focusing on the appellant’s objection to seeking information for multiple assessment years. Legal issues include disputing the alleged time-barred nature of re-assessment, questioning the assessing officer’s authority, and contesting the adequacy of the inquiry under Section 148A(a). A further point of contention is whether the assessing officer’s email clarification amounts to impermissible modification of the original notice.
Courts analysis and decision
In this intra-court appeal, the petitioner challenged an order related to a writ petition against proceedings under Section 148A(b) of the Income Tax Act, 1961, focusing on the assessment year 2016-2017. The appellant contended that information for multiple assessment years should not have been sought, and the notice could not be amended. The court held that the notice pertained solely to the assessment year 2016-2017, and the appellant’s objections lacked merit. The court rejected the claim of impermissible amendment and upheld the assessing officer’s compliance with Section 148A procedures. The appellant’s attempt to delay proceedings was noted, and the court directed their participation in the reassessment without granting adjournments. The appeal was dismissed, and no costs were awarded. The court emphasized expeditious completion of the reassessment.
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Written by- Aastha Ganesh Tiwari
