{"id":294818,"date":"2023-06-17T09:00:01","date_gmt":"2023-06-17T03:30:01","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=294818"},"modified":"2023-06-20T15:55:00","modified_gmt":"2023-06-20T10:25:00","slug":"calcutta-high-court-power-of-reopening-of-assessment-be-used-for-adequate-reason-legal-news","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2023\/06\/17\/calcutta-high-court-power-of-reopening-of-assessment-be-used-for-adequate-reason-legal-news\/","title":{"rendered":"Income Tax| Power of reopening of assessment should be sparingly used for adequate reason: Calcutta High Court"},"content":{"rendered":"
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Calcutta High Court<\/b> | A Division Bench comprising of T.S. Sivagnanam*, CJ.<\/b>, and Hiranmay Bhattacharyya, J., held that the opportunity afforded the petitioner at the first instance to file reply to the Show Cause Notice was not an effective opportunity, therefore, there was a violation of principles of natural justice.<\/p>\n

Factual Matrix<\/b><\/p>\n

In the instant matter, a Show Cause Notice under S. 148-A(b)<\/a> of the Income Tax Act, 1961<\/a> (the Act) was issued by the Assessing Officer (the AO) alleging that the petitioner had entered into purchase transactions therefore needed to provide corroborative evidence and authentic details\/documents to support said transactions and later passed an order dated 30-03-2022 before the petitioner could file submissions in a proper and effective manner in response to the show cause notice.<\/p>\n

Aggrieved by the order dated 30-03-2022 passed by the AO, the petitioners preferred a writ petition before Single Bench of this Court. The Single Bench dismissed the impugned writ petition vide order dated 04-04-2023 on the ground that during the pendency of the writ petition, an assessment order under S. 147<\/a> of the Act<\/a> has been passed on 22-03-2023 and the said order is an appealable order. Aggrieved by the dismissal of the impugned writ petition, the appellant preferred an appeal before this Court challenging impugned order dated 04-04-2023.<\/p>\n

Moot Point<\/b><\/p>\n

Whether the assessment order dated 22-03-2023 and the impugned order dated 04-04-2023 is passed by violating the principle of natural justice?<\/p>\n

Law Point<\/b><\/p>\n