In a recent case, the Orissa High Court stayed the Income Tax proceedings initiated due to failure in mentioning issuance of notice under section 148A (d) of Income Tax Act, 1961 in Goods and Services Tax ( GST ) Portal.
Mr. Sahoo, senior advocate appeared on behalf of petitioner-assessee, Nirmal Kumar Kar challenged the order dated 25th March, 2023 under section 148-A(d) in Income Tax Act, 1961 and proceedings initiated pursuant thereto.
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Drawing attention to print out of information displayed in the portal, he demonstrated that as on 27th March, 2023 there is information reflected on issuance of notice under section 148 of the Act. It was submitted that there is no information regarding issuance of notice under 148-A(b) said to be dated 2nd March, 2023.
An order under section 148A(d) is limited to ascertainment of information with the Assessing Officer (AO) that the income of the assessee has escaped assessment to tax. The final determination on the question of whether the income of the assessee has actually escaped assessment is to be made after notice under section 148 by passing an order of assessment or reassessment under section 147.
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Section 148A of the Income Tax Act, empowers Income Tax officers to initiate reassessment proceedings when they suspect that a taxpayer may have concealed income during any assessment year. While allowing the tax authorities to reopen cases, also emphasizes the importance of providing taxpayers with an opportunity to present their side of the story.
Mr. Kedia, advocate, Junior Standing Counsel appeared on behalf of revenue and submitted that the notice was duly issued.
Relying on disclosure by print out of the portal, the division bench of Justice Arindam Sinha and Justice M.S. Sahoo directed to stay of proceeding initiated pursuant to impugned order till next date of hearing and to list the matter on 13th November, 2024.
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