Patna High Court
Dipawali Vimal vs Ito, Ward 3(1) on 6 October, 2023
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.7573 of 2023
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Dipawali Vimal W/o of Shri Vimlendu Vimal resident of South Church Road,
Healing Touch Hospital, Behind Kochar Petrol Pump, Gaya Bihar - 823001.
... ... Petitioner/s
Versus
ITO, Ward 3(1) Gaya.
... ... Respondent/s
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Appearance :
For the Petitioner/s : Mr. D.V.Pathy, Advocate
For the Respondent/s : Mrs.Archana Sinha @ Archana Shahi, Sr. S.C.
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CORAM: HONOURABLE THE CHIEF JUSTICE
and
HONOURABLE MR. JUSTICE RAJIV ROY
ORAL JUDGMENT
(Per: HONOURABLE THE CHIEF JUSTICE)
Date : 06-10-2023
The petitioner, an assessee under the Income
Tax Act, 1961, is aggrieved with the order issued under
Section 148A(d) of the Income Tax Act, 1961; on the
ground of limitation having expired for any proceeding
under Section 148 to be initiated. The assessment year is
2019-20 and the date of order passed under clause(d) of
Section 148A is 21.04.2023.
2. We have heard Sri. D.V. Pathy, the learned
counsel for the petitioner and Smt. Archana Sinha, learned
Senior Standing Counsel appearing for the Department.
3. Section 148 deals with issuance of notice
Patna High Court CWJC No.7573 of 2023 dt.06-10-2023
where income has escaped assessment. It mandates that
before making re-assessment or re-computation under
Section 148, the Assessing Officer shall serve on the
assessee a notice requiring him to furnish within such
period, as maybe specified in the notice, return of his
income or the income of any other person in support of
which he is assessable under the Act during the previous
year corresponding to the relevant assessment year.
4. Section 149 provides for the time limit for
the notice to be issued under Section 148. Under Clause(a)
of sub-section (1), 3 years time is provided from the end of
the relevant assessment year unless the case falls under
clause(b). Insofar as the clause(b) is concerned, the
limitation is 10 years from the end of the relevant
assessment year, provided the escaped assessment amounts
to or is likely to amount to Rs. 50 lakh or more. In the
present case, the order under clause (b) of Section 148A
itself is passed on 21.04.2023 after the expiry of the three
year period and the total amounts likely to have escaped
assessment is indicated as Rs. 13,93,500/-.
5. Learned Senior Standing Counsel for the
Patna High Court CWJC No.7573 of 2023 dt.06-10-2023
Department argued that in fact Annexure-1 is the initiation
of the proceedings, which was on 31.03.2023 on
introduction of the faceless assessment by way of Section
148A of the Income Tax Act. There is requirement for
issuance of notice under Section 148A(a) and an order
under clause(d) prior to the notice issued under Section
148A; which provision (Section 148A) is introduced newly
under the I.T. Act. The notice under Section 148A is issued
within a three year period, is the contention.
6. It is to be noticed that Section 148A was
brought in by the Finance Act, 2021 with effect from
01.04.2021 when Section 148 also stood substituted.
Section 148A deals with the inquiry and the opportunity
being provided before issuance of notice under Section 148.
However, under Section 149, which also stood substituted
by Finance Act, 2021, the limitation provided is for the
notice under Section 148 and not of inquiry or opportunity
for hearing under Section 148A.
7. The relevant assessment year is 2019-20
and three years end on 31.03.2023. There is no notice issued
under Section 148 as on date. The proceedings, hence,
Patna High Court CWJC No.7573 of 2023 dt.06-10-2023
cannot be continued and we find Annexure-3 order under
Section 148(d) to be not enabling the Department to
proceed under Section 148.
8. The writ petition stands allowed.
(K. Vinod Chandran, CJ)
( Rajiv Roy, J)
Sujit/-
AFR/NAFR NAFR
CAV DATE
Uploading Date 10.10.2023
Transmission Date
