Allowing the petition the Court held that a writ petition to challenge a S. 263 notice is maintainable if the authority issuing the show-cause notice lacks jurisdiction and if the notice is clearly barred by law. As per Alagendran Finance 162 Taxman 465 (SC), the two year limitation period stipulated u/s 263(2) runs from the date of the original assessment and not from the date of reassessment when the S. 263 notice deals with issues which are not subject matter of reassessment proceedings .Notice issued by the PCIT is quashed ( W . A . N o . 1 0 9 2 of 2 0 1 7, dt. 14.06.2018) (AY.2012-13)
Indira Industries v. PCIT ( 2018) 169 DTR 171 / 305 CTR 314 (Mad)(HC), www.itatonline.org
S. 263 : Commissioner – Revision of orders prejudicial to revenue –Limitation – If the authority issuing the show-cause notice lacks jurisdiction and if the notice is clearly barred by law , writ is maintainable- Notice issued by the PCIT is quashed [ Art, 226 ]