HENTECH AGROVET PVT LTD vs. INCOME TAX OFFICER,WARD 13 AND ORS

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WPA/24371/2022HC CalcuttaWBCHCA049211202229 November 2022Author: HON'BLE JUSTICE MD. NIZAMUDDIN2 pages
AI SummaryRemanded

What did the High Court hold?

The Tribunal held that the impugned order dated July 30, 2022, passed under Section 148A(d) of the Income Tax Act, 1961, was bad and not sustainable in law. The reasoning was based on the admitted factual and legal position that the notice under Section 148A(b) was issued after the expiry of three years from the end of the relevant assessment year (2016-2017) and that the alleged escapement of income was below Rs. 50 lakh. The Tribunal found that these facts rendered the order liable to be quashed. The operative direction was to quash the impugned order dated July 30, 2022. No issue was expressly left undecided.

What were the facts?

The petitioner, Hentech Agrovet Private Limited, filed a writ petition challenging an order dated July 30, 2022, passed under Section 148A(d) of the Income Tax Act, 1961. This order pertains to assessment year 2016-2017. The petitioner argued that the order was passed without jurisdiction and was contrary to Sections 149(1)(a) and (b) of the Act. Specifically, the petitioner contended that the notice was issued after the expiry of three years from the end of the relevant assessment year and that the alleged escaped income of Rs. 2,00,000/- was below the threshold of Rs. 50 lakh. The revenue was represented by the Income Tax Officer, Ward No. 13(1), Kolkata, and others.

What were the issues?

1. Whether the impugned order dated July 30, 2022, passed under Section 148A(d) of the Income Tax Act, 1961, relating to assessment year 2016-2017, is without jurisdiction and contrary to the provisions of Section 149(1)(a) and (b) of the Act, given that the notice was issued after the expiry of three years from the end of the relevant assessment year and the alleged escaped income is below Rs. 50 lakh? Assessee's Contentions: The assessee argued that the impugned order was without jurisdiction and contrary to Section 149(1)(a) and (b) of the Income Tax Act, 1961. The assessee contended that the notice was issued after the expiry of three years from the end of the relevant assessment year and that the alleged escaped income of Rs. 2,00,000/- was below Rs. 50 lakh, which are grounds for invalidating the notice under the amended provisions. Revenue's Contentions: The judgment records no specific contentions from the revenue.

Which sections of the Income-tax Act were involved?

Section 148A,Section 149(1)

AI-generated summary — verify with the full judgment below

WPA 24371 OF 2022 29.11.2022

Sl no. 30

Hentech Agrovet Private Limited Ct no. 2

- Vs - P.M. Income Tax Officer, Ward No. 13(1), Kolkata & Ors.

Mr. Avra Mazumder, Mr. Binayak Gupta, Ms. Megha Agarwal

…. for the petitioner

Mr. Aryak Dutt

… for Union of India.

Heard learned counsel appearing for the parties.

By this writ petition, petitioner has challenged the impugned order dated July 30, 2022 under Section 148A(d) of the Income Tax Act, 1961, relating to assessment year 2016-2017 on the ground that the same being without jurisdiction and contrary to the provision of Section 149(1) (a) and (b) of the Income Tax Act, 1961 by contending that admittedly the impugned notice has been issued after the expiry of three years from the end of relevant assessment year and it is also an admitted position which appears from the conclusion of the assessing officer himself in the impugned order that the alleged escapement of income is Rs. 2,00,000/- which is below Rs. 50 lakh.

Considering the submission of the parties and admitted factual and legal position which appears on

2 perusal of the impugned order dated July 30, 2022, I am of the considered view that the aforesaid impugned order is bad and not sustainable in law and is liable to be quashed for the reason that the impugned notice under Section 148A(b) under the newly amended Act was issued after expiry of three years from the end of relevant assessment year and the alleged escapement of income is below Rs. 50 lakh.

In view of the discussion made above, this writ petition being WPA 24371 of 2022 is disposed of by quashing the aforesaid impugned order dated July 30, 2022 under Section 148A(d) of the Act.

(Md. Nizamuddin, J.)

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