ORDER
1. Assailing the assessment order dated 9th February, 2026 passed in/by the Assessment Unit, Income Tax Department under Section 147 read with Sections 144 and 144B of the Income Tax Act, 1961 (for short “I.T. Act”) pertaining to assessment year 2018-19 (previous year 2017-18), the petitioner has filed this writ petition with the following prayer:
“In the context aforesaid it is most humbly prayed that Your Lordships may after hearing the counsel for the petitioner be pleased to-
(i) Call for the records;
(ii) Issue Rule Nisi calling upon the Opposite Parties to show cause as to why the Order of Assessment dt.31.07.2024 and the Demand Notice under Annexure-1 & 2 and the Notice issued u/s 148A(b) and Order passed u/s 148A(d) under Annexure-3 and 4 to the Writ Petition shall not be quashed; And if the Opposite Parties fail to show cause or show insufficient cause, then the rule may be made absolute;
And further Your Lordships may be pleased to pass such other order or orders as your Lordships may deem fit and proper;
And for this act of kindness, the petitioner as in duty bound shall ever pray.”
2. Sri Sidhartha Ray, learned Senior Advocate assisted by Sri Kshirod Kumar Sahoo, learned counsel appearing for the petitioner submitted that in connection with notice under Section 148A(b) of the I.T. Act being issued for the assessment year 2018-19 to explain the alleged bogus input tax credit claimed by the petitioner, an order dated 29th August, 2024 has come to be passed under Section 148A(d) of the I.T. Act with an opinion that it is a fit case to issue notice under Section 148 of the said Act. The assessment was undertaken in faceless manner and a notice was also issued under Section 142 of the said Act, to which the petitioner responded and uploaded all relevant and related materials to justify the claim of input tax credit in respect of transactions effected under the Central Goods and Services Tax Act, 2017 / Odisha Goods Services and Tax Act, 2017 (for short the “GST Act”).
2.1. Sri Sidhartha Ray, learned Senior Advocate drew our attention to show-cause notice dated 7th January, 2026 with the proposed variation. He contended that at paragraph-4.1 of the said showcause notice vide Annexure-11, it has been recorded as follows:
“This has reference to the assessment proceedings for A.Y. 2024-25. On perusal of the paper book and other details filed by assessee, the following variation has been proposed.”
2.2. He would, therefore, submit that though the proceeding was initiated with respect to assessment year 2018-19, the Assessing Officer has referred to details of assessment year 2024-25 questioning the propriety and legality of utilizing the fact and figure relating to assessment year 2024-25 to the assessment in question, i.e., 2018-19.
3. Sri Avinash Kedia, learned Junior Standing Counsel appearing for the opposite parties, the Income Tax Department, submitted that the defect or irregularity in the assessment order and/or notice can be rectified/modified/varied in the appeal or in the duly constituted proceeding, if approach is made to competent authority in this regard. He submitted that the petitioner being not remediless, he objected for entertainment of the writ petition against the assessment order.
4. Heard Sri Sidhartha Ray, learned senior counsel being assisted by Sri Kshirod Kumar Shaoo, learned counsel appearing for the petitioner and Sri Avinash Kedia, learned Junior Standing Counsel appearing for the Income Tax Department.
5. Upon perusal of the documents enclosed with the writ petition, it is manifest that notice dated 7th January, 2026 pertaining to assessment year 2018-19 (Annexure-11) would reveal that the Assessing Officer has made reference to assessment proceedings for the assessment year 2024-25.
6. Perusal of assessment order does not reveal that the Assessing Officer has confined the facts and figures pertaining to the assessment year 2024-25. Since the assessment order is the culmination of show-cause notice with respect to proposed variation and said notice has reference to the assessment proceeding for the assessment year 2024-25, this Court is persuaded to hold that the materials / facts and figures of one assessment year cannot be utilized for the purpose of assessment of another assessment year.
6.1. The Assessment Order is silent about the fact that the Authority has referred and relied on the figures related to Assessment Year 2018-19. The Show Cause Notice has also not clarified such position. Therefore, it is felt apposite to set aside the assessment order dated 9th February, 2026 passed under Section 147 read with Section 144 and 144B of the Income Tax Act vide Annexure-1 and remit the matter to the Authority concerned for adjudication of the matter afresh in pursuance of show-cause notice dated 7th January, 2026 (Annexure-11).
7. For the purpose of availing opportunity of hearing and production of evidence/documents before the Authority concerned, the petitioner shall be intimated by the Income Tax Department to appear before the Assessment Unit, Income Tax Department by specifying a date. On his appearance on the date so fixed by the Authority concerned, liberty is reserved to the Assessee to produce relevant and related documents/evidence as she wishes to submit in connection with the objections specified in the notice. The Assessing Officer after hearing the Assessee shall proceed to pass appropriate order by taking into consideration the documents submitted before him vis-a-vis such materials that are available on record. After passing a reasoned order, the same shall be communicated to the petitioner forthwith.
8. Needless to say that in the event the petitioner would fail to appear on the date fixed by the Assessment Unit, Income Tax Department, the Assessing Officer shall be at liberty to pass appropriate assessment order and communicate the same to the Assessee.
9. With the aforesaid observation and direction, this writ petition stands disposed of. As a result of disposal of the writ petition, all pending Interlocutory Application(s) shall stand disposed of.
