IN THE HIGH COURT AT CALCUTTA

CONSTITUTIONAL WRIT JURISDICTION

APPELLATE SIDE

Before:

The Hon’ble Justice Om Narayan Rai

WPA 21228 of 2025

Himadri Speciality Chemical Limited (Previously known as Himadri

Chemical and Industries Ltd.)

Vs.

Assistant/Deputy Commissioner of Income Tax, Central Circle 3(4) &

Ors.

For the Writ Petitioner : Mr. J.P. Khaitan, Sr. Adv.

Mr. Saumya Kejriwal, Adv.

Mrs. Ananya Rath, Adv.

Mr. Navin Mittal, Adv.

Mr. Debarghya Banerjee, Adv.

For the Respondents : Mr. Aryak Dutt, Adv.

Mr. Soumen Bhattacharjee, Adv.

Mr. Ankan Das, Adv.

Ms. Shradhya Ghosh, Adv.

Ms. Riya Kundu, Adv.

Hearing Concluded on : 19.11.2025 Judgment on : 08.12.2025

Om Narayan Rai, J.:-

1. This writ petition lays challenge to interalia the order under section 148(3)

dated June 26, 2025 of the Income Tax Act, 1961 (hereafter “the 1961 Act), the consequential notice dated June 26, 2025 issued under Section 148 and

the reassessment proceeding that has begun on the basis thereof.

FACTS OF THE CASE:

2. A brief summary of the case run in the writ petition may first be noticed:

a) The petitioner is engaged in the business of manufacturing of coal tar pitch, carbon black etc.

b) For the purpose of transportation of the raw material required for manufacturing the items dealt in by the petitioner, the petitioner had, during the years relevant for the present proceedings, engaged Liquid Gold Carriers Private Limited as a transporter.

c) On April 9, 2021 a search and seizure operation was conducted at the residential premises of the Director of Liquid Gold Carriers Private Limited (hereafter 'the transporter'). On the same day, a survey operation was also conducted at the office premises of the said company.

d) Based on the information/material gathered during the said survey operation, the Assessing Officer initiated reassessment proceedings in respect of the income of the transporter for the Assessment Year (AY) 2019-20 by issuing a notice dated June

28, 2022 under Section 148 of the 1961 Act.

e) In connection with the said reassessment proceedings pertaining to assessment year 2019-20, a notice dated July 16, 2022 was also issued to the petitioner under Section 133(6) of the 1961 Act calling upon the petitioner to provide an explanation as regards the allegation of return of cash to the tune of Rs.80,62,000/- by the transporter to the petitioner.

f) The petitioner responded to the said notice and supplied requisite details thereby denying receipt of cash from the transporter.

g) Ultimately, the Assessing Officer completed the assessment of the transporter by an order dated August 26, 2022 passed under Section 143(3)/147 of the 1961 Act thereby accepting the submissions of the transporter and the explanation furnished by petitioner without making any addition on the basis of the allegation of return of cash of Rs.80,62,000/-.

h) On the other hand, the petitioner’s income tax return for the assessment year 2018-19 was selected for scrutiny through Computer-Assisted Scrutiny Selection (hereafter “CASS”) in respect of certain issues. The same was completed by an assessment order dated March 10, 2021 passed under Section 143(3) of the 1961 Act. By the said order the total income of the petitioner was determined to be Rs.43,72,260/- under normal provision and book profit calculated as per MAT was determined to be Rs.3,56,57,52,516/- under Section

115JB of the 1961 Act.

i) Subsequently, a notice dated March 31, 2022 under Section 148 of the 1961 Act was issued to the petitioner with a view to reassess the petitioner’s income for the assessment year 2018-19. Such reopening of assessment was also based on the same information gathered by the revenue authorities during the survey proceedings conducted at the office premises of the transporter.

j) The allegation was that a sum of Rs.4,75,00,000/- had been returned to the petitioner in cash by the transporter out of the transportation charges of Rs.27,57,96,668/- received by the transporter from the petitioner for the financial year relevant to t