Calcutta High Court cancels IT department's reassessment notices
It was done on grounds of failure to follow statutory formalities
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Calcutta High Court cancels IT department's reassessment notices It was done on grounds of failure to follow statutory formalities The Calcutta High Court has quashed the reassessment notices for failure on the part of the Income Tax department to follow statutory formalities. About 43 petitions were filed assailing the issuance of the impugned notices under the Income Tax (IT)...
Calcutta High Court cancels IT department's reassessment notices
It was done on grounds of failure to follow statutory formalities
The Calcutta High Court has quashed the reassessment notices for failure on the part of the Income Tax department to follow statutory formalities.
About 43 petitions were filed assailing the issuance of the impugned notices under the Income Tax (IT) Act, 1961. The petitions mentioned that the same was barred by limitations. The Income Tax authority had not observed the statutory formalities as prescribed by the Finance Act, 2021 before issuing the notices. The Finance Act was applicable with effect from 1 April 2021.
The single bench of Justice Md. Nizamuddin held that the explanation to the notifications dated 31 March 2021 and 27 April 2021 were ultra vires under the Relaxation Act, 2020, and hence null and void.
All the impugned notices under the IT Act were quashed with a liberty to the assessing officers to initiate fresh reassessment proceedings in accordance with the relevant provisions of the amended Finance Act.