Patna High Court
Healing Touch Hospital vs Principal Chief Commissioner Of Income … on 8 August, 2025
Author: Rajeev Ranjan Prasad
Bench: Rajeev Ranjan Prasad, Ashok Kumar Pandey
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.19373 of 2024
======================================================
Healing Touch Hospital a partnership firm having is office at Church Road,
Gandhi Maidan near Government Bus Stand Gaya 823001 through its partner
Dr Vimlendu Vimal (Male, aged about 55 years) son of Shri Surendra Prasad
resident of South Church Road, Healing Touch Hopital, Behind Kochar Petrol
Pump, P.O. - Head Post Office, Gaya and P.S. - Civil Line, Gaya Bihar -
823001.
... ... Petitioner
Versus
1. Principal Chief Commissioner of Income Tax having its Office at Central
Revenue Building, Bir Chand Patel Path, Patna 800001.
2. Director General of Income Tax (Inv.), having it office at Central Revenue
Building, Bir Chand Patel Path, Patna 800001.
3. Principal Commissioner of Income Tax, having its office at Central Revenue
Building, Bir Chand Patel Path, Patna 800001.
4. Dy. Commissioner of Income Tax, Central Circle, having its office at Central
Revenue Building, Annexe, Bir Chand Patel Path, Patna 800001.
5. Asst. Commissioner of Income Tax, Central Circle, having its Office at
Central Revenue Building, Annexe, Bir Chand Patel Path, Patna 800001.
... ... Respondents
======================================================
Appearance :
For the Petitioner/s : Mr. D.V.Pathy, Sr. Advocate
Mr. Sadashiv Tiwary, Advocate
Mr. Hiresh Karan, Advocate
For the Respondent/s : Ms. Archana Sinha @ Archana Shahi, Sr. Advocate
Ms. Swarna Roy, Advocate
Ms. Richa Rajiv Singh, Advocate
Ms. Komal, Advocate
======================================================
CORAM: HONOURABLE MR. JUSTICE RAJEEV RANJAN PRASAD
and
HONOURABLE MR. JUSTICE ASHOK KUMAR PANDEY
CAV JUDGMENT
(Per: HONOURABLE MR. JUSTICE RAJEEV RANJAN PRASAD)
Date : 08-08-2025
The present writ application has been preferred seeking
the following reliefs:-
"(i) The notice dated 25.09.2024 (as contained in
Annexure-P11) under Section 148 of the Income Tax
Act, 1961 issued by the respondent no.4 after three
years from the end of the Assessment Year 2020-21
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without sanction from a specified authority namely,
the Principal Chief Commissioner of Income Tax or
the Director General of Income Tax (Inv.) mandated
in Section 151 of the Income Tax Act, 1961
(hereinafter called the Act); without issue of notice
under Section 143(2) within the prescribed time
despite availability thereof on the same set of
material in the knowledge and possession of the
respondent no.3 being wholly without jurisdiction be
set aside and quashed.
(ii) The order dated 25.09.2024 (as contained in
Annexure-P10) passed by the respondent no.4 under
Section 148A(d) without sanction from the specified
authority mentioned in section 151 of the Act and
without consideration of the reply of the assessee
beyond the time limit prescribed in section 148A(d)
of the Act being wholly without jurisdiction be set-
aside and quashed.
(iii) For granting any other relief(s) to which the
petitioner is otherwise found entitled to."
Brief facts of the case
2. The petitioner is a partnership firm though one of it's
partners of the firm is the citizen of India, they derived income
under the head 'income from business'. A survey was conducted
by the authorized officers of the Income Tax Department
(hereinafter referred to as the 'Department') in terms of Section
133A of the Income Tax Act, 1961 (hereinafter referred to as the
'Act of 1961') in the business premises of the petitioner. Certain
documents were seized after preparation of inventories.
3. It is the case of the petitioner that the firm filed its
income tax return for the financial year ending 31.03.2020 relevant
Patna High Court CWJC No.19373 of 2024 dt.08-08-2025
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to the Assessment Year 2020-21 along with audit report, profit and
loss account and the balance sheet.
4. The petitioner was served with a show cause notice
under Section 148A(b) of the Act of 1961 on the grounds inter-alia
that the Department had information which suggest that the
income chargeable to tax for the Assessment Year 2020-21 has
escaped assessment within the meaning of Section 147 of the Act
of 1961. A copy of the notice dated 29.03.2024 issued under
Section 148A(b) of the Act of 1961 has been brought on record as
Annexure-P2.
Submissions on behalf of the petitioner
5. Learned senior counsel for the petitioner submits that
on receipt of the notice (Annexure-P2), the petitioner found that
the notice was not containing any information or any other
documents in support of the same. Therefore, a request was made
vide Annexure-P3 to the Department to make available the same in
order to answer the allegations.
6. It is submitted that the Department issued another
notice dated 08.04.2024 (Annexure-P4), thereafter, the notice
dated 27.05.2024 (Annexure-P6). The petitioner filed written
submissions in which a plea was taken inter-alia that the notice
only attaches verification details but the information and the
Patna High Court CWJC No.19373 of 2024 dt.08-08-2025
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supporting materials which led to the issuance of notice were not
supplied to the petitioner. It is the case of the petitioner that a
detail explanation as regards the actual receipts as per material
found in course of survey and the disclosure made by the
petitioner and its partners Dr. Vimlendu Vimal and Dr. Deepawali
Vimal in their respective income tax returns, were filed.
7. The petitioner was served with another notice dated
30.07.2024
under Section 148A(b) of the Act of 1961 granting the
firm an opportunity of being heard. A date of hearing i.e.
06.08.2024 at 12.30 PM was fixed. The petitioner filed a detail
submission wherein a plea was taken that the notice under
reference was fourth notice and that the firm had not asked for any
time to reply to the notice. In its written submissions (Annexure-
P9), the petitioner submitted that a reference to sub-clause (d) of
Section 148 of the Act of 1961 would show that the order under
the said sub-clause is to be passed within a period of one month
from the end of the month in which the reply referred to in clause
(c) is received by him or where no such reply is furnished within
one month from the end of the month in which time or extended
time allowed to furnish a reply as per clause (b) expires. It is
submitted that the exclusions in the proviso appended to section
148A has no application in the present case.
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8. Learned senior counsel for the petitioner further
submits that the petitioner in the present case had only asked for
supply of relevant documents and the materials on the basis of
which the notice was issued. The petitioner had not asked for any
time to reply to the notice. Therefore, since no extension of time
was prayed for by the petitioner, the question of allowing any
further time in terms of sub-clause (b) does not arise. According to
him, the period of limitation as provided in sub-clause (d) of
Section 148A of the Act of 1961 is one month from the end of
month in which the reply referred to in clause (c) of the Act of
1961 is received. This clause is to be construed strictly with only
exception of “extended time allowed” to furnish a reply as per
clause (b) expires. It is his submission that one month from the end
of the month in which the reply is received under clause (c) of the
Act of 1961 is to be reckoned from 03.06.2024, therefore, the
order under sub-clause (d) was to be passed on or before
31.07.2024 but the notice granting an opportunity of hearing was
issued on 30.07.2024 by which a date of hearing was fixed on
06.08.2024. This would be a case of assumed extension which
cannot be allowed. Learned senior counsel, therefore, submits that
the impugned order would be barred by law of limitation and the
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continuance of proceeding under sub-clause (d) would be wholly
illegal and without jurisdiction.
9. Learned senior counsel for the petitioner further
submits that Section 148A of the Act of 1961 provides for the
manner of passing an order thereunder. According to him, there
should be a clear finding that it is a fit case for issuance of notice
under Section 148 of the Act. It is a statutory requirement to step
into the arena of reassessment after the amendment by the Finance
Act, 2021. Reliance has been placed on the judgment of the
Hon’ble Supreme Court in the case of Union of India VS. Ashish
Agarwal reported in 2022 SCC OnLine SC 543 in which the
Hon’ble Supreme Court has taken note of the amendment carried
out by the Finance Act, 2021.
10. Learned senior counsel for the petitioner submits
that in this case the sanction of the specified authority as required
under Section 151 of the Act of 1961 for the purpose of Section
148 and Section 148A of the Act of 1961 has not been obtained.
According to him, in the cases where more than three years have
elapsed from the end of the relevant assessment year the sanction
is required to be obtained from the statutory authority i.e. the
Principal Chief Commissioner of Income Tax or the Director
General of Income Tax (Investigation). It is submitted that in the
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present case, notice only mentioned about grant of sanction by the
Principal Commissioner, Patna. It is submitted that in view of
Section 151(ii) of the Act of 1961, the Principal Commissioner,
Patna has no authority to grant sanction in the cases beyond three
years. It is, thus, submitted that in absence of sanction by the
appropriate authority, the assumption of jurisdiction under Section
148 of the Act of 1961 would be wholly illegal.
11. Learned senior counsel submits that the Principal
Commissioner of Income Tax who has has granted sanction in the
present case has acted mechanically in a routine manner and
sanction has been granted without application of judicious mind.
For this reason as well, the order under Section 148A (d) of the Act
of 1961 would stand vitiated.
Submissions on behalf of the respondents
12. A counter affidavit has been filed on behalf of the
Department. It is stated therein that information were received
from insight portal uploaded by the ITO, Ward-3(1), Gaya which
suggested that income chargeable to tax for the Assessment Year
2020-21 has escaped assessment within the meaning of Section
147 of the Act of 1961. A survey was conducted in the premises of
the assessee. The documents found during the said survey reveals
the receipt of Rs.1,72,64,207/- for the financial year 2020-2021,
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but the assessee has shown receipt amounting to Rs.23,37,200/-
only in its corresponding ITR. The assessee was called upon to
explain the difference in the said receipt of Rs. 1,49,27,007/- along
with corroborative evidence. The show cause notice under clause
(b) of Section 148A was issued to the assessee.
13. It is stated that in response to the notice the assessee
submitted its replies which were perused. It is submitted that the
notice dated 27.05.2024 mentions that as per survey record total
receipt has been computed on the basis of receipt from
consultancy, HTH (Admin), HTH-01 and HTH-(XRX). The
petitioner took a plea that Dr. Vimlendu Vimal is the main force
behind the Healing Touch Hospital. In reply to the question put in
course of survey, the petitioner categorically stated that the major
part of the receipt found in course of survey belong to him and that
some part of the OPD/consultancy are of the healing touch
hospital. The entirety of the X ray receipts is of Dr. Dipawali
Vimal.
14. According to the respondents/department, the
description of the gross receipts as stated in the notice dated
27.05.2024 and the actual receipt as worked out from the similar
material impounded in course of survey vis-a-vis the disclosure in
the return of Dr. Vimlendu Vimal are as under:-
Patna High Court CWJC No.19373 of 2024 dt.08-08-2025
9/34As per Survey Amount Financial year Actual receipt Receipt as per
Record (F. Estimated by 2019-20 Total (of Seize ITR
Year: 2019-20) Department (in material)
Rs.)
HTH (Admin)- 1,26,47,207. 00 HTH(Admin)- 1,11,13,848.00 1,56,64,513.00
57 to 62 57 to 62 (in ITR of
Vimlendu
Vimal)
HTH (OPD) – 17,90,000.00 HTH (OPD)- 13,36,200.00 23,37,200.00
01 4475(4475 x 01 to 28,31,46 (in ITR of
500) to 50 (Total Healing Touch
No. of receipt Hospital)
3375 only)
HTH (RXR) – 18,27,000.00 HTH(RXR)- 13,33,500.00 13,66,500.00
Total Receipt 26 to 49(Total (in ITR of
3654 ( 3654 x no of receipts Dipawali
500) 2342 only) Vimal)
1,62,64,207.00 1,37,83,548.00 1,93,68,213.00
(And not Rs. 1,72,64,207/- as
alleged in Verification Details
annexed with notice u/s
148A(b))
15. Learned senior Standing Counsel for the Department
submits that scheme of Section 148A as amended by the Finance
Act, 2021 inter-alia provides for conduct of enquiry, grant of
opportunity of being heard in response to the show cause notice,
consideration of the reply furnished and most important is a
decision on the basis of the materials on record including the reply
of the assessee to judge as to whether or not it is a fit case to issue
a notice under Section 148 by passing an order with the prior
approval of the specified authority.
16. Learned senior counsel submits that from the kind of
stand taken by the assessee that “the major part’ of the receipt
found in course of survey belong to Dr. Vimlendu Vimal and that
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10/34“some part” of the OPD/consultancy are of the Healing Touch
Hospital, the firm was required to be assessed properly to find out
the correct and true picture. It is the duty of the assessee to
maintain complete books of account but in this case there is no
such document or books of account maintained by the assessee. In
spite of having been provided with sufficient time and opportunity
to furnish evidences in support of its claim, the assessee could not
submit any corroborative evidence in this regard. It is pointed out
that in the written submission dated 03.06.2024 filed by the
assessee, an opportunity of hearing was requested and considering
its request, the assessee has been granted one more opportunity of
being heard in the matter in person by the office DIN vide letter
dated 30.07.2024. In response to this letter, the assessee had filed
its submission on 05.08.2024. The Department submits that the
plea of the assessee that it had not sought any time to reply to the
notice is liable to be rejected. The Department has provided the list
of the dates showing that how the petitioner requested for
providing specific information/ material and acceding the request
of the petitioner, the Department gave him opportunity to file his
reply and participate in the hearing.
17. It is submitted that the period of limitation for
purpose of clause (d) is to be considered from the date of
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11/34furnishing of the reply, in terms of clause (c) of Section 148A of
the Act of 1961. The words ‘furnishing of reply’ has a wider
meaning. In the present case, the assessee has furnished only part
reply on 03.06.2024 as is evident from the fact that in that very
submission, opportunity of being heard in person was prayed for.
The hearing was provided by fixing a date on 06.08.2024. The
written submissions filed by the petitioner on 05.08.2024 is a part
submission of his reply and notice issued by the Department on
30.07.2024 is only in continuation of ongoing proceedings under
Section 148A of the Act of 1961.
18. As regards the approval under Section 151 of the Act
of 1961, it is submitted that approval has been accorded by the
specified authority Patna vide DIN No.ITBA/AST/S/126/2024-
25/1069094736(1) dated 25.09.2024. Notice under Section 148 of
the Act of 1961 has been issued vide DIN & Notice No.
ITBA/AST/S/148_1/2024-25/1069097722(1) dated 25.09.2024.
19. Learned senior Standing Counsel for the Department
submits that the show cause notice under clause (b) of Section
148A of the Act of 1961 was issued timely to the assessee on
29.03.2024. The case was opened after due process with approval
of specified authority. It is submitted that all processes were done
Patna High Court CWJC No.19373 of 2024 dt.08-08-2025
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through system which allowed the Department taking approval
from specified authority.
20. By filing a rejoinder to the counter affidavit of the
Department, the petitioner has once again reiterated its
submissions as regards the limitation and sanction.
21. In course of hearing of the writ application on
02.07.2025, learned Senior Standing Counsel for the Department
submitted that the second page (page no.67 of the writ application)
which is said to be a part of the approval under Section 151 of the
Act of 1961 seems to have been wrongly enclosed and it may not
pertain to the present case. It was contended that column ’17’ of
the table shows the details of the information which suggests that
income chargeable to tax has escaped assessment. It refers Order
under Section 148A(d). It was contended that if the order under
Section 148A(d) was already available on 17.03.2024, then there
would not have been any question to seek sanction for conducting
enquiry under Section 148A(d) of the Act Income Tax Act on
25.09.2024, therefore, the second page of the approval sheet under
Section 151 of the Act was disputed. Later, in course of hearing of
the matter on 10.07.2025, the learned Senior Standing Counsel has
submitted on instruction that from Column ’12’ of the approval
sheet under Section 151 it will appear that in answer to the same
Patna High Court CWJC No.19373 of 2024 dt.08-08-2025
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the word ‘No’ has been mentioned. It is submitted that sanction
has been obtained at the stage of Section 148A(d) on 25.09.2024
but in Column ’20’ due to a typographical error it mentions
“Section 148A(a)“. In fact the approval has been granted for order
under Section 148A(d) which will be evident from the proposal of
the DCIT and recommendations of the Joint C.I.T. The Principal
Commissioner, Income Tax, Patna has granted sanction on
25.09.2024. Notice under Section 148 has been issued after
sanction on the same day i.e. 25.09.2024.
22. Learned Senior Counsel has further submitted that in
clause (b) of Section 148A for the purpose of providing an opportunity
of being heard to the assessee, there would be no need of prior approval
of specified authority. The words “prior approval” of specified authority
in Clause (b) have been omitted by the Financial Act, 2022 w.e.f.
01.04.2022.
23. It is further submitted that a close reading of clause (b) of
Section 148A would show that notice to show cause as to why a notice
under Section 148 should not be issued may be based on the
information which suggests of income chargeable to tax has escaped
assessment and results of enquiry conducted, if any, as per clause (a).
According to learned Senior Standing Counsel, the words “…..enquiry
conducted, if any, as per clause (a)” would further suggest that an
Assessing Officer may go for conducting any enquiry only when it is
required. The words “conduct an enquiry, if any required, …. ” as
Patna High Court CWJC No.19373 of 2024 dt.08-08-2025
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occurring in clause (a) of Section 148A read with the submissions made
hereinabove with respect clause (d) of Section 148A would only show
that conduct of an enquiry is not mandatory for purpose of issuance of
show cause notice under clause (b). A notice may be issued under this
clause on the basis of information which suggests that income
chargeable has escaped assessment in the relevant year.
Consideration
24. This Court has noted the submission of learned senior
counsel for the petitioner who had questioned the notice under Section
148 of the Act of 1961 issued on 25.09.2024, on the ground of
limitation as also on the ground that it has no sanction of the competent
authority. According to him, the sanction was required at both the stages
of Section 148A(a) and at the stage of Section 148A(d) of the Act of
1961 but to this Court it appears that the words “… if required…”
occurring under Section 148A(a) are the words of significance. It is
only when an enquiry is required then sanction is to be taken under
25. At this stage, this Court would take note of Section 147
to 151 of the Act of 1961. Section 147 confers power upon the
Assessing Officer to assess or reassess such income in respect of which
he has reasons to believe that the same has escaped assessment for any
assessment year subject to the provisions and safeguards provided in
this Section. The Assessing Officer can reassess income for assessment
year irrespective of which whether the original assessment was merely
Patna High Court CWJC No.19373 of 2024 dt.08-08-2025
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an intimation under Section 143(1) or the original assessment was a
full-fledged scrutiny assessment under Section 143(3) of the Act of
1961. The power to take proceedings under this provision is not
confined to the cases where the assessee had concealed his income, but
it also extends to cases where the Assessing Officer has reasons to
believe, on the basis of some tangible materials in his possession that
the income has escaped assessment.
26. On a bare reading of Section 147 of the Act, it would be
evident that the action envisaged under Section 147 is subject to the
provisions of Section 148 to 153.
27. Section 148 reads as under:-
61
[Issue of notice where income has escaped assessment.62
61. Substituted by the Finance Act, 2021, w.e.f. 1-4-2021. Prior to its substitution, section 148, as amended by the Direct Tax
Laws (Amendment) Act, 1987, w.e.f. 1-4-1989, Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989, Finance (No. 2)
Act, 1996, w.r.e.f. 1-4-1989, Finance Act, 2006, w.r.e.f. 1-10-1991 and Finance Act, 2006, w.r.e.f. 1-10-2005, read as under:
*148. ** Issue of notice where income has escaped assessment (1) Before making the assessment, reassessment or
recomputation under section 147, the Assessing Officer shall servet on the assessee a notice requiring him to furnish within
such period, as may be specified in the notice, a return of his income or the income of any other person in respect of which he
is assessable under this Act during the previous year corresponding to the relevant assessment year, in the prescribed form
and verified in the prescribed manner and setting forth such other particulars as may be prescribed; and the provisions of this
Act shall, so far as may bett, apply accordingly as if such return were a return required to be furnished under section 139:
Provided that in a case-
(a) where a return has been furnished during the period commencing on the 1st day of October, 1991 and ending on the 30th
day of September, 2005 in response to a notice served under this section, and
(b) subsequently a notice has been served under sub-section (2) of section 143 after the expiry of twelve months specified in
the proviso to sub-section (2) of section 143, as it stood immediately before the amendment of said sub-section by the
Finance Act, 2002 (20 of 2002) but before the expiry of the time limit for making the assessment, reassessment or
recomputation as specified in sub-section (2) of section 153, every such notice referred to in this clause shall be deemed to be
a valid notice:
Provided further that in a case-
(a) where a return has been furnished during the period commencing on the 1st day of October, 1991 and ending on the 30th
day of September, 2005, in response to a notice served under this section, and
(b) subsequently a notice has been served under clause (ii) of sub-section (2) of section 143 after the expiry of twelve months
specified in the proviso to clause (ii) of sub section (2) of section 143, but before the expiry of the time limit for making the
assessment, reassessment or recomputation as specified in sub-section (2) of section 153, every such notice referred to in this
clause shall be deemed to be a valid notice.
Explanation-For the removal of doubts, it is hereby declared that nothing contained in the first proviso or the second proviso
shall apply to any return which has been furnished on or after the 1st day of October, 2005 in response to a notice served
under this section.
(2) The Assessing Officer shall, before issuing any notice under this section, record his reasons for doing so.”
*For Notification No. SO 1178, dated 11-2-1982, log on to www.taxmann.com.
**For relevant case laws, see Taxmann’s Master Guide to Income-tax Act.
For meaning of the term “serve”, see Taxmann’s Direct Taxes Manual, Vol. 3.
For the meaning of the expression “so far as may be”, see Taxmann’s Direct Taxes Manual, Vol. 3.
62. See Order F.No. 225/40/2021/ITA II, dated 4-3-2021 (Instruction regarding selection of cases for issue of notice u/s 148)
and Order F.No. 225/40/2021-ITA II, dated 15-3-2021 (Instruction regarding selection of Potential cases’ for issue of notice
under section 148 and rationalisation of workload in International Taxation Charges).
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148. Before making the assessment, reassessment or
recomputation under section 147, and subject to the
provisions of section 148A, the Assessing Officer shall
serve on the assessee a notice, along with a copy of the
order passed, if required, under clause (d) of section 148A,
requiring him to furnish within 62a[a period of three months
from the end of the month in which such notice is issued, or
such further period as may be allowed by the Assessing
Officer on the basis of an application made in this regard
by the assessee], a return of his income or the income of
any other person in respect of which he is assessable under
this Act during the previous year corresponding to the
relevant assessment year, in the prescribed form and
verified in the prescribed manner and setting forth such
other particulars as may be prescribed; and the provisions
of this Act shall, so far as may be, apply accordingly as if
such return were a return required to be furnished under
section 139:
Provided that no notice under this section shall be issued
unless there is information with the Assessing Officer
which suggests that the income chargeable to tax has
escaped assessment in the case of the assessee for the
relevant assessment year and the Assessing Officer has
obtained prior approval of the specified authority to issue
such notice:
63
[Provided further that no such approval shall be required
where the Assessing Officer, with the prior approval of the
specified authority, has passed an order under clause (d) of
section 148A to the effect that it is a fit case to issue a
notice under this section:]
63a
[Provided also that any return of income, required to be
furnished by an assessee under this section and furnished
beyond the period allowed shall not be deemed to be a
return under section 139.]
Explanation 1.–For the purposes of this section and
section 148A, the information with the Assessing Officer
which suggests that the income chargeable to tax has
escaped assessment means,–
(i) any information 64[***] in the case of the assessee for
the relevant assessment year in accordance with the risk
management strategy formulated by the Board from time to
time;*or
62a. Substituted for “such period, as may be specified in such notice” by the Finance Act, 2023, w.e.f. 1-4-2023.
63. Inserted by the Finance Act, 2022, w.e.f. 1-4-2022.
63a. Inserted by the Finance Act, 2023, w.e.f. 1-4-2023.
64. Word “flagged” omitted by the Finance Act, 2022, w.e.f. 1-4-2022.
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65[(ii) any audit objection to the effect that the assessment
in the case of the assessee for the relevant assessment year
has not been made in accordance with the provisions of
this Act; or
(iii) any information received under an agreement referred
to in section 90 or section 90A of the Act; or
(iv) any information made available to the Assessing
Officer under the scheme notified under section 135A; or
(v) any information which requires action in consequence
of the order of a Tribunal or a Court.]
Explanation 2.–For the purposes of this section, where,–
(i) a search is initiated under section 132 or books of
account, other documents or any assets are requisitioned
under section 132A, on or after the 1st day of April, 2021,
in the case of the assessee; or
(ii) a survey is conducted under section 133A, other than
under sub-section (2A) 66[***] of that section, on or after
the 1st day of April, 2021, in the case of the assessee; or
(iii) the Assessing Officer is satisfied, with the prior
approval of the Principal Commissioner or Commissioner,
that any money, bullion, jewellery or other valuable article
or thing, seized or requisitioned under section 132 or
section 132A in case of any other person on or after the 1st
day of April, 2021, belongs to the assessee; or
(iv) the Assessing Officer is satisfied, with the prior
approval of Principal Commissioner or Commissioner, that
any books of account or documents, seized or requisitioned
under section 132 or section 132A in case of any other
person on or after the 1st day of April, 2021, pertains or
pertain to, or any information contained therein, relate to,
the assessee,
the Assessing Officer shall be deemed to have information which
suggests that the income chargeable to tax has escaped assessment
in the case of the assessee 67[where] the search is initiated or books
of account, other documents or any assets are requisitioned or
survey is conducted in the case of the assessee or money, bullion,
jewellery or other valuable article or thing or books of account or
documents are seized or requisitioned in case of any other person.
Explanation 3.–For the purposes of this section, specified
authority means the specified authority referred to in section 151.]
65. Clauses (ii) to (v) substituted for clause (ii), ibid. Prior to its substitution, clause (ii) read as under
“(ii) any final objection raised by the Comptroller and Auditor General of India to the effect that the assessment in the
case of the assessee for the relevant assessment year has not been made in accordance with the provisions of this Act.”
66. Words or sub-section (5)” omitted, ibid.
67. Substituted for ‘for the three assessment years immediately preceding the assessment year relevant to the previous
year in which”, ibid., w.r.e.f. 1-4-2021. *”or” should be inserted.
Patna High Court CWJC No.19373 of 2024 dt.08-08-2025
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28. According to this provision, before making the
assessment, reassessment or computation under Section 147, the
Assessing Officer shall serve on the assessee a notice requiring
him to furnish within such period as may be specified in the notice
return of his income during the previous year corresponding to the
relevant assessment in the prescribed form. If such return is filed,
provisions of Act of 1961 shall apply as if such return was a return
required to be furnished under Section 139. For the purpose of the
present case, we need not go into the provisos to subsection (1) of
Section 148 of the Act of 1961. The second proviso to Section 148
inserted vide Finance Act, 2022 with effect from 01.04.2022 shall
apply. It is evident that what is required under this section is that a
notice containing all or any of the requirements which may be
included in a notice shall be served.
29. Section 148A has been inserted in the statute book
by the Finance Act, 2021 with effect from 01.04.2021. Section
148A reads as under:-
68
[Conducting inquiry, providing opportunity before
issue of notice under section 148.
148A. The Assessing Officer shall, before issuing any
notice under section 148,–
(a) conduct any enquiry, if required, with the prior
approval of specified authority, with respect to the
information which suggests that the income chargeable to
tax has escaped assessment;
(b) provide an opportunity of being heard to the assessee,
68. Inserted by the Finance Act, 2021 w.e.f. 1-4-2021
Patna High Court CWJC No.19373 of 2024 dt.08-08-2025
19/3469[***] by serving upon him a notice to show cause within
such time, as may be specified in the notice, being not less
than seven days and but not exceeding thirty days from the
date on which such notice is issued, or such time, as may
be extended by him on the basis of an application in this
behalf, as to why a notice under section 148 should not be
issued on the basis of information which suggests that
income chargeable to tax has escaped assessment in his
case for the relevant assessment year and results of enquiry
conducted, if any, as per clause (a);
(c) consider the reply of assessee furnished, if any, in
response to the show-cause notice referred to in clause (b);
(d) decide, on the basis of material available on record
including reply of the assessee, whether or not it is a fit
case to issue a notice under section 148, by passing an
order, with the prior approval of specified authority, within
one month from the end of the month in which the reply
referred to in clause (c) is received by him, or where no
such reply is furnished, within one month from the end of
the month in which time or extended time allowed to
furnish a reply as per clause (b) expires:
Provided that the provisions of this section shall not apply
in a case where,–
(a) a search is initiated under section 132 or books of
account, other documents or any assets are requisitioned
under section 132A in the case of the assessee on or after
the 1st day of April, 2021; or
(b) the Assessing Officer is satisfied, with the prior
approval of the Principal Commissioner or Commissioner
that any money, bullion, jewellery or other valuable article
or thing, seized in a search under section 132 or
requisitioned under section 132A, in the case of any other
person on or after the 1st day of April, 2021, belongs to the
assessee; or
(c) the Assessing Officer is satisfied, with the prior
approval of the Principal Commissioner or Commissioner
that any books of account or documents, seized in a search
under section 132 or requisitioned under section 132A, in
case of any other person on or after the 1st day of April,
2021, pertains or pertain to, or any information contained
therein, 70[relate to, the assessee; or
69. Substituted for “relate to, the assessee.” by the Finance Act, 2022, w.e.f. 1-4-2022.
70. Inserted, ibid.
Patna High Court CWJC No.19373 of 2024 dt.08-08-2025
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(d) the Assessing Officer has received any information
under the scheme notified under section 135A pertaining to
income chargeable to tax escaping assessment for any
assessment year in the case of the assessee.]
Explanation.–For the purposes of this section, specified
authority means the specified authority referred to in
section 151.]
30. A reading of Clause (a) of Section 148A makes it
clear that the Assessing Officer shall before issuing any notice
under Section 148 can conduct any inquiry, if required, with the
prior approval of the specified authority with respect to which the
information which suggests that the income chargeable to tax has
escaped assessment, thus an approval of the specified authority is
required for purpose of conducting any inquiry with respect to the
information. Clause (b) talks of providing an opportunity of being
heard to the assessee by serving upon him a notice to show cause
within such time as may be specified in the notice but the statute
clearly provides that such time could not be less than seven days
and shall not exceed thirty days from the date on which the notice
is issued. This time to show cause may be extended on the basis of
an application in this behalf. It is evident that this opportunity of
being heard is to be provided to show cause as to why a notice
under Section 148A should not be issued.
31. It is further evident from Clause (c) of Section 148A
that the Assessing Officer has to consider the reply of the assessee
pursuant to the show cause notice referred to in Clause (b).
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Thereafter, Clause (d) of Section 148A provides for a decision on
the basis of the material available on the record including reply of
the assessee. The Assessing Officer has to decide as to whether or
not it is a fit case to issue a notice under Section 148 by passing an
order with the prior approval of a specified authority, within one
month from the end of the month in which the reply referred to in
Clause (c) is received by him or where no such reply is furnished
within one month from the end of the month in which the time or
extended time allowed to furnish a reply as per Clause (b) expires.
32. In the present case, a notice dated 29.03.2024 was
issued under Section 148A (b) to the petitioner. It is the case of the
petitioner that the notice was not containing any information so he
made a request vide Annexure ‘P/3’ to the department to make
available the same in order to answer the allegations. On perusal of
the records, we find that Annexure ‘P/2’ which is the notice under
Clause (b) of Section 148A Annexure was enclosed. The annexure
attached to the notice says inter alia that “the details of the
information/inquiry conducted on which reliance is being placed,
along with supporting documents, are enclosed with this
notice….” In response to this notice, the petitioner has stated in his
reply (Annexure ‘P/3’) that “the notice also mentions that the
details of information/inquiry conducted on which reliance is
Patna High Court CWJC No.19373 of 2024 dt.08-08-2025
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being placed along with supporting documents are enclosed with
this notice but the assessee does not find any such enclosure along
with notice.” The petitioner, therefore, requested the Assessing
Officer to supply the documents/information/inquiry reports
referred to and relied upon in the annexure to the notice.
33. This Court further finds that vide Annexue ‘P/4’
dated 08.04.2024, the Assessing Officer provided the details of the
information on which reliance has been placed along with the
supporting documents. This Court has noticed that Annexure ‘P/3’
is the same and one as that of Annexure ‘P/2’. Annexure to the
notice (P/3) once again mentions that the details of
information/inquiry conducted on which reliance is being placed
along with supporting documents, are enclosed with this notice.
The petitioner once again wrote to the Assessing Officer that the
relevant materials available on the record which has led to the
issuance of notice have not been supplied. The words
‘information/inquiry’ has been used interchangeably.
34. Thereafter, the Assessing Officer issued a letter dated
27.05.2024 (Annexure ‘P/6’) by which the information in possession of
the Assessing Officer has been made available to the petitioner which
we reproduce hereunder for a ready reference:-
“GOVERNMENT OF INDIA
MINISTRY OF FINANCE
INCOME TAX DEPARTMENT
Patna High Court CWJC No.19373 of 2024 dt.08-08-2025
23/34OFFICE OF THE ASSISTANT
COMMISSIONER OF INCOME TAX
DCIT/ACIT CEN CIR 1, PatnaTo,
HEALING TOUCH HOSPITAL
PARTNER DR VIMLENDU VIMAL SOUTH
CHURCH
ROAD, GANDHI MAIDAN NEAR
GOVERNMENT BUS STAND
GAYA 823001, Bihar
IndiaPAN: Assessment Dated: DIN & Letter No.
AAIFH8721M Year: 27/05/2024 ITBA/COM/F/17/202
2020-21 4-25/1065139800(1)Sir/Madam/ M/s
Subject: Online service of Orders – Letter
Sub- Notice under clause(b) of section 148A of the Income-tax Act, 1961-reg.
Ref. Your letter dated 22/04/2024.
Kindly refer to the above.
In connection with the above, documents/information is being provided to you as
requested.
It is pertinent to mention here that in this case information has been received from
Insight portal uploaded by ITO, Ward 3(1), Gaya (Concerned verification details
is attached here).
Besides, as per the survey record, total receipt has been computed on the basis of
receipt found and register of indoor patient, details of X-ray receipt which are as
under-
(i) Receipt from consultancy (OPD)- Rs. 1,26.47.207/-
HTH(Admn) -57 to 62
(ii)HTH-01 (OPD) -4475(4475×500) – Rs. 17,90,000/-
(iii) HTH(RxR) Total Receipt 3654 (3654×500) Rs. 18,27,000/-
You are requested to furnish your submission in this regard on or before
03.06.2024.
AAIFH8721M-HEALING TOUCH
HOSPITAL
A.Y.2020-21
ITBA/COM/F/17/2024-
25/1065139800(1)
Swati Kumari Sujata
DCIT/ACIT CEN CIR 1, Patna
35. It is evident from the letter dated 27.05.2024
(Annexure ‘P/6’) that the petitioner was given opportunity to file
his submissions on or before 03.06.2024. Thus, seven days were
Patna High Court CWJC No.19373 of 2024 dt.08-08-2025
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given to the petitioner to show cause as required under Clause (b)
of Section 148A of the Act of 1961.
36. It is evident from the records that the petitioner
submitted his response/show-cause on 03.06.2024. In his response
the petitioner also prayed for grant of opportunity of being heard
in the matter in person. One of the contentions of Mr. D.V. Pathy,
learned Senior Counsel for the petitioner is that in terms of Clause
(d) of Section 148A, the Assessing Officer was obliged to take a
decision as to whether or not it is a fit case for issuance of notice
under Section 148 within one month from the end of the month in
which the reply referred to in Clause (c) is received by him.
According to him, the reply was submitted on 03.06.2024,
therefore, the Assessing Officer was statutorily bound to pass order
under Clause (d) of Section 148A within one month from the end
of the month of June 2024. Thus, according to the learned Senior
Counsel, the decision was to be taken latest by 31st of July 2024.
While considering this submission of learned Senior Counsel for
the petitioner, we have noticed that while submitting his response
dated 03.06.2024, the petitioner prayed for grant of an opportunity
of being heard in the matter in person. This prayer of the petitioner
has been accepted by the Assessing Officer and vide Annexure
‘P/8’ dated 30.07.2024, the petitioner was informed of a date i.e.
Patna High Court CWJC No.19373 of 2024 dt.08-08-2025
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06.08.2024 for personal hearing. The petitioner was given
opportunity to furnish evidences/documents, if any, in support of
its claim on the said date.
37. On a complete reading of the scheme of Section
148A of the Act of 1961, we find that the heart and soul of this
provision is contained in Clause (b) of Section 148A which
provides for an opportunity of being heard to the assessee. This
opportunity of hearing has to be given by serving upon the
assessee a notice to show-cause. Clause (c) of Section 148A talks
of consideration of the reply of the assessee furnished in response
to the show-cause notice referred to in Clause (b) and then Clause
(d) talks of a decision on the basis of materials available on the
record including the reply of the assessee. This Court finds that
under the scheme of Section 148A, though there is no specific
provision for allowing an opportunity of personal hearing, to this
Court it appears that in order to provide the petitioner an
opportunity to put forth an effective reply, if the Assessing Officer
thought it just and proper to accept the prayer of the petitioner to
provide an opportunity of personal hearing before passing an order
under Clause (d) of Section 148A, no fault may be found with the
same and that would not allow the petitioner to contend that the
decision under Clause (d) of Section 148A not having been taken
Patna High Court CWJC No.19373 of 2024 dt.08-08-2025
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within one month from the end of the month in which the reply
was received by the Assessing Officer, the order passed after one
month shall be barred by limitation. This we say in the facts of the
present case where it is evident that the date of personal hearing
was fixed by the Assessing Officer on 30.07.2024, which is before
the expiry of one month from the end of the month in which the
reply was submitted by the petitioner. This, in our opinion, was an
extension as envisaged under Clause (b) of Section 148A and the
basis of this was the application submitted by the petitioner
seeking a personal hearing. In our considered opinion, this ground
is liable to fail.
38. The second ground which has been agitated before
this Court is with regard to the sanction for issuance of notice as
envisaged under Section 151 of the Act of 1961. Section 151 reads
as under.
“79 [Sanction for issue of notice.
79. Substituted by the Finance Act, 2021, w.e.f. 1-4-2021. Prior to its substitution, section 151, as
substituted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989 and later on amended by the
Finance Act, 1990, w.e.f. 1-4-1990, Finance (No. 2) Act, 1998, wef. 1-10 1998, Finance Act, 2008, w.r.e.f.
1-10-1998 and Finance (No. 2) Act, 2014, w.r.ef. 1-6-2013 and further substituted by the Finance Act,
2015, w.e.f. 1-6-2015, read as under:
“151. Sanction for issue of notice-(1) No notice shall be issued under section 148 by an Assessing Officer,
after the expiry of a period of four years from the end of the relevant assessment year, unless the Principal
Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner is satisfied, on
the reasons recorded by the Assessing Officer, that it is a fit case for the issue of such notice.
(2) In a case other than a case falling under sub-section (1), no notice shall be issued under section 148 by
an Assessing Officer, who is below the rank of Joint Commissioner, unless the Joint Commissioner is
satisfied, on the reasons recorded by such Assessing Officer, that it is a fit case for the issue of such
notice.
(3) For the purposes of sub-section (1) and sub-section (2), the Principal Chief Commis sioner or the
Chief Commissioner or the Principal Commissioner or the Commissioner or the Joint Commissioner, as
the case may be, being satisfied on the reasons recorded by the Assessing Officer about fitness of a case
for the issue of notice under section 148, need not issue such notice himself.”
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151. Specified authority for the purposes of section
148 and section 148A shall be,–
(i) Principal Commissioner or Principal Director or
Commissioner or Director, if three years or less than
three years have elapsed from the end of the
relevant assessment year;
(ii) Principal Chief Commissioner or Principal
Director General or 79a[***] Chief Commissioner or
Director General, if more than three years have
elapsed from the end of the relevant assessment
year:]
79b
[Provided that the period of three years for the purposes
of clause (i) shall be computed after taking into account the
period of limitation as excluded by the third or fourth or
fifth provisos or extended by the sixth proviso to sub-
section (1) of section 149.]”
39. It is the contention of learned Senior Counsel for the
petitioner that in this case, the sanction of the specified authority
for the purpose of Section 148 and Section 148A of the Act of
1961 has not been obtained. In his opinion, since more than three
years had elapsed from the end of the relevant assessment year, the
sanction was required to be obtained from the Principal Chief
Commissioner of Income Tax or the Director General of Income
Tax, Investigation. In this case, the sanction has been obtained
from the Principal Commissioner, Patna. Contrary to the stand of
the petitioner, the department has taken a stand that in this case,
the sanction has been granted by the Principal Commissioner,
Patna which is in consonance with the requirement in terms of
79a. Words “where there is no Principal Chief Commissioner or Principal Director General,”
omitted by the Finance Act, 2023 w.e.f. 1-4-2023
79b. Inserted, ibid.
Patna High Court CWJC No.19373 of 2024 dt.08-08-2025
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Clause (i). Learned Senior Counsel has submitted that
according to Clause (i) of Section 151 of the Act of 1961, the
Principal Commissioner is competent if three years or less
than three years have elapsed from the end of the relevant
assessment year. In this case, the relevant assessment year is
the year 2020-2021. The notice under Section 148A(b) has
been issued within three years on 29.03.2024. The order under
Section 148A(d) has been passed on 25.09.2024 and on the
same day notice under Section 148 has been issued. Attention
of this Court has been drawn towards Section 149 of the Act
of 1961, which provides the time limit for notice under
Section 148 and Section 148A. Section 149 has been
substituted by the Finance Act 2021 with effect from
01.04.2021. Prior to its substitution, Section 149 was amended
by the Direct Tax Laws (Amendment) Act, 1987 with effect
from 01.04.1989, Direct Tax Laws (Second Amendment) Act,
1989 with effect from 01.04.1989 and Finance Act, 2001 with
effect from 01.06.2001 and Finance Act, 2012 with effect
from 01.07.2012. We reproduce Section 149 of the Act of
1961 as under:-
Patna High Court CWJC No.19373 of 2024 dt.08-08-2025
29/34“72
Time limit for notice.
149. (1) No notice under section 148 shall be issued
for the relevant assessment year,–
(a) if three years have elapsed from the end of the
relevant assessment year, unless the case falls under
clause (b);
73[(b) if three years, but not more than ten years,
have elapsed from the end of the relevant
assessment year unless the Assessing Officer has in
his possession books of account or other documents
or evidence which reveal that the income chargeable
to tax, represented in the form of–
(i) an asset;
(ii) expenditure in respect of a transaction or in
relation to an event or occasion; or
(iii) an entry or entries in the books of account,
which has escaped assessment amounts to or is
likely to amount to fifty lakh rupees or more:]
72. Substituted by the Finance Act, 2021, w.e.f. 1-4-2021. Prior to its substitution, section 149, as amended by the
Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989, Direct Tax Laws (Second Amendment) Act, 1989, w.e.f. 1-4-
1989, Finance Act, 2001, w.e.f. 1-6-2001 and Finance Act, 2012, w.e.f. 1-7-2012, read as under:
“149. Time limit for notice.-(1) No notice under section 148 shall be issued for the relevant assessment year,-
(a) if four years have elapsed from the end of the relevant assessment year, unless the case falls under clause (b) or
clause (c);
(b) if four years, but not more than six years, have elapsed from the end of the relevant assessment year unless the
income chargeable to tax which has escaped assessment amounts to or is likely to amount to one lakh rupees or more
for that year,
(c) if four years, but not more than sixteen years, have elapsed from the end of the relevant assessment year unless the
income in relation to any asset (including financial interest in any entity) located outside India, chargeable to tax, has
escaped assessment.
Explanation. In determining income chargeable to tax which has escaped assessment for the purposes of this sub-
section, the provisions of Explanation 2 of section 147 shall apply as they apply for the purposes of that section.
(2) The provisions of sub-section (1) as to the issue of notice shall be subject to the provisions of section 151.
(3) If the person on whom a notice under section 148 is to be served is a person treated as the agent of a non-resident
under section 163 and the assessment, reassessment or recomputation to be made in pursuance of the notice is to be
made on him as the agent of such non-resident, the notice shall not be issued after the expiry of a period of six years
from the end of the relevant assessment year.
Explanation.–For the removal of doubts, it is hereby clarified that the provisions of sub-sections (1) and (3), as
amended by the Finance Act, 2012, shall also be applicable for any assessment year beginning on or before the 1st day
of April, 2012.”
*For relevant case laws, see Taxmann’s Master Guide to Income-tax Act.
For the meaning of the expressions “issued”, “escaped assessment” and “likely to amount to one lakh rupees or more”,
see Taxmann’s Direct Taxes Manual, Vol.3
73. Substituted by the Finance Act, 2022, w.e.f. 1-4-2022. Prior to its substitution, clause ( read as under:
“(b) if three years, but not more than ten years, have elapsed from the end of the relevant assessment year unless the Assessing
Officer has in his possession books of account or other documents or evidence which reveal that the income chargeable to tax,
represented in the form of asset, which has escaped assessment amounts to or is likely to amount to fifty lakh rupees or more for that
year:”
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Provided that no notice under section 148 shall be
issued at any time in a case for the relevant
assessment year beginning on or before 1st day of
April, 2021, if 74[a notice under section 148 or
section 153A or section 153C could not have been
issued at that time on account of being beyond the
time limit specified under the provisions of clause
(b) of sub-section (1) of this section or section 153A
or section 153C, as the case may be], as they stood
immediately before the commencement of the
Finance Act, 2021:
Provided further that the provisions of this sub-
section shall not apply in a case, where a notice
under section 153A, or section 153C read with
section 153A, is required to be issued in relation to
a search initiated under section 132 or books of
account, other documents or any assets
requisitioned under section 132A, on or before the
31st day of March, 2021:
74a[Provided also that for cases referred to in
clauses (i), (iii) and (iv) of Explanation 2 to section
148, where,–
(a) a search is initiated under section 132; or
(b) a search under section 132 for which the last of
authorisations is executed; or
(c) requisition is made under section 132A,
after the 15th day of March of any financial year and
the period for issue of notice under section 148expires
on the 31st day of March of such financial year, a
period of fifteen days shall be excluded for the purpose
of computing the period of limitation as per this section
and the notice issued under section 148 in such case
shall be deemed to have been issued on the 31st day of
March of such financial year:
74. Substituted for “such notice could not have been issued at that time on account of being beyond the time limit specified under the
provisions of clause (b) of sub-section (1) of this section” by the Finance Act, 2022, w.r.e.f. 1-4-2021.
74a. Inserted by the Finance Act, 2023, w.e.f. 1-4-2023
Patna High Court CWJC No.19373 of 2024 dt.08-08-2025
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Provided also that where the information as referred to
in Explanation 1 to section 148 emanates from a
statement recorded or documents impounded under
section 131 or section 133A, as the case may be, on or
before the 31st day of March of a financial year, in
consequence of,–
(a) a search under section 132 which is initiated; or
(b) a search under section 132 for which the last of
authorisations is executed; or
(c) a requisition made under section 132A,
after the 15th day of March of such financial year, a
period of fifteen days shall be excluded for the purpose
of computing the period of limitation as per this section
and the notice issued under clause (b) of section 148A
in such case shall be deemed to have been issued on the
31st day of March of such financial year:]
Provided also that for the purposes of computing the
period of limitation as per this section, the time or
extended time allowed to the assessee, as per show-
cause notice issued under clause (b) of section 148A or
the period during which the proceeding under section
148A is stayed by an order or injunction of any court,
shall be excluded:
Provided also that where immediately after the
exclusion of the period referred to in the immediately
preceding proviso, the period of limitation available to
the Assessing Officer for passing an order under clause
(d) of section 148A 74b[does not exceed seven days],
such remaining period shall be extended to seven days
and the period of limitation under this sub-section shall
be deemed to be extended accordingly.
Explanation.–For the purposes of clause (b) of this
sub-section, “asset” shall include immovable property,
being land or building or both, shares and securities,
loans and advances, deposits in bank account.
75[(1A) Notwithstanding anything contained in sub-
section (1), where the income chargeable to tax
represented in the form of an asset or expenditure in
74b. Substituted for “is less than seven days” by the Finance Act, 2023, w.e.f. 1-4-2023
75. Inserted by the Finance Act, 2022, w.e.f. 1-4-2022.
Patna High Court CWJC No.19373 of 2024 dt.08-08-2025
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relation to an event or occasion of the value referred to
in clause (b) of sub-section (1), has escaped the
assessment and the investment in such asset or
expenditure in relation to such event or occasion has
been made or incurred, in more than one previous years
relevant to the assessment years within the period
referred to in clause (b) of sub-section (1), a notice
under section 148 shall be issued for every such
assessment year for assessment, reassessment or
recomputation, as the case may be.]
(2) The provisions of sub-section (1) as to the issue of
notice shall be subject to the provisions of section 151.]
40. On a reading of the entire scheme of Section 149, it
is evident that for purpose of computing the period of limitation
as per the fifth proviso of this section, the time or extended time
allowed to the assessee as per show-cause notice issued under
Clause (b) of Section 148A or the period during which the
proceeding under Section 148 is stayed is liable to be excluded.
In this case, the notice under Clause (b) of Section 148A was
issued on 29.03.2024 and order under Section 148A(d) has been
passed on 25.09.2024. In this fact situation, the notice under
Section 148 has been issued after three years from the end of the
assessment year 2020-2021 but that would not vitiate the notice
under Section 148 of the Act of 1961 for the reasons stated
hereinafter.
41. In the present case, the judgment of the Hon’ble
Supreme Court in Suo Motu Writ Petition (Civil) No. 03 of
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2020 Cognizance for Extension of Limitation reported in
(2021) 5 SCC 452, which has also been relied upon by a
Division Bench of this Court Abha Saraf vs. versus Union of
India and Others (CWJC No. 3207 of 2022) have been placed
before this Court. A statement has been made that the period
beginning from 16th March 2020 to 20th March, 2022 would be
liable to be excluded while counting the period of limitation of
three years. It is submitted that in this case, the relevant year/
assessment year would fall during the Covid period. In ordinary
course, the period of limitation would have come to an end upon
completion of three years subject to the calculation of time-limit
in terms of Section 149, but in this case, the period from 1st of
April, 2021 to 20th of March, 2022 shall be liable to be
excluded while counting the period of limitation. In the case
of Abha Saraf (supra), the Hon’ble Division Bench of this
Court has held that the saving of limitation applies equally to
individuals insofar as approaching the Courts or legal forums for
redressal and also to the Departments, who are statutorily
mandated to initiate proceeding within a specific time. Keeping
in view the judgment of the Hon’ble Supreme Court in the
matter of Cognizance for Extension of Limitation (supra) and
of the Hon’ble Division Bench of this Court in Abha Saraf
Patna High Court CWJC No.19373 of 2024 dt.08-08-2025
34/34
(supra), we have no iota of doubt that in the present case as well
the Department would be entitled to get the benefit of saving of
limitation for the period 1st of April 2021 to 20th March, 2022. If
that period is excluded from counting the limitation, notice under
Section 148 of the Act of 1961 issued on 25.09.2024 would not
be barred by limitation. In such circumstance, the sanction
granted by the Principal Commissioner in accordance with
Section 151 (i) of the Act of 1961 is in accordance with law.
42. In view of the aforementioned discussions, we are of
the opinion that even the second ground is liable to fail.
43. In result, the writ application is dismissed. There
would, however, not be any order for cost.
(Rajeev Ranjan Prasad, J)
(Ashok Kumar Pandey, J)
arvind/-
AFR/NAFR AFR CAV DATE 10.07.2025 Uploading Date 08.08.2025 Transmission Date