HC STAYS I-T NOTICES IN AT LEAST 11 CASES

The Bombay High Court recently stayed reassessment notices issued by the Income Tax (I-T) department in at least 11 cases where the assessment was sought to be opened after more than six years without approval of the Principal Chief Commissioner of Income-Tax (PCIT).

A bench of Justices Dhiraj Thakur and Kamal Khata recently stayed the notices saying that prima facie (on the face of it) case was made out to grant relief to the petitioners.

In January this year, the bench had ruled that issuing a reassessment notice after four years is subject to the approval of the PCIT. It had said that the approval for the issuance of a notice under Section 148 of the IT Act ought not to have been obtained from the additional commissioner of income tax but from the authority specifically mentioned under Section 151(ii) of the IT Act.

The HC order had come on a petition by MA Multi-Infra Development

Pvt Ltd against the assistant commissioner of income tax. The court had quashed the IT notice issued to it.

In one of the present petitions, Nirmaan Creatives Private Limited had challenged the notice issued to it under Section 148 for the assessment year 2013-14, on the ground that the same has been issued beyond the period of six years, as envisaged under the provisions of the Act.

The HC asked the IT counsel to file the department’s reply within six weeks while keeping the matter for hearing on June 14.

The HC granted similar relief in another plea filed by Suresh Agarwal. The petitioner had challenged the notice dated July 31, 2022, issued to it under Section 148 for the assessment year 2017-18 on the ground that the same has been issued beyond the period of three years.

Pending hearing, the HC stayed the IT notices in both the cases.

It granted similar relief in at least nine other petitions.

Court said Principal Chief Commissioner of Income-Tax’s approval is needed to open reassessment after more than six years