S. 148A : Reassessment-Conducting inquiry, providing opportunity before issue of notice- Assessment year 2013-14-Six years expired on 31st March, 2020-Notice issued on 28th July, 2022-Notice issued beyond six years-Barred by limitation-Taxation and other laws (Relaxation and Amendment of certain provisions, Act, 2020 (TOLA) has not applicable for the Assessment year 2013-14-Instructions are not binding on the assessee-Validity of notice must be judged on the basis of the law existing on the date on which such notice is issued- Notice and order was quashed as barred by limitation. [S. 148, 148A(b), 148A(d), 149(1), 151, 151A, Limitation Act, 1963, TOLA, S. 3(1), Art. 142, 226]
The petitioner challenged the notice dated 28th July 2022 issued under Section 148 of the Income-tax Act, 1961 seeking to reopen petitioner’s assessment for AY 2013-14 on various grounds . One of the ground of challenge was the notice was barred by limitation and the Taxation and other laws (Relaxation and Amendment of certain provisions) Act, 2020 (TOLA) has no application to AY. 2013-14. For AY 2013-14, the time limit to issue a notice under Section 148 of the Act had already expired on 1st April 2021. On the said date, the assessee had a vested right, which de hors the 1st proviso to the amended Section 149 of the Act, could not be taken away and thus, based on the well 14 ITR 233 settled principles of law, the reopening of the AY 2013-14 after 31st March 2021 is invalid, without jurisdiction and barred by limitation. In a detailed order the Honourable High Court considering various case laws on the subject and provisions, the Court up held the contention. of the petitioner and held that for AY 2013-14, the time limit to issue a notice under Section 148 of the Act had already expired on 1st April 2021. The limitation period, as extended by TOLA, expired on 31st March 2021. However, in the present case, the reopening notice has been issued in July 2022 and, therefore, beyond the statutory time limit. The Hon’ble Supreme Court, while invoking powers under Article 142, consciously and categorically granted liberty to assessees to raise all defences available to the assessee, including the defences under Section 149 of the Act. This specific and express directions cannot be set at naught. Accepting this contention of the Revenue would be a travesty of justice. Accordingly the notice issued under Section 148 of the Act, for AY 2013-14 is issued beyond the period of limitation hence the notice and consequential orders also quashed. (WP No. 1945 of 2003 dt. 15th January, 2024) (AY. 2013-14)
New India Assurance Company Ltd v. ACIT (Bom)(HC) www.itatonline.org
[Coram : Hon’ble Shri Justice K. R. Shriram & Hon’ble Justice Dr. Neela Gokhale]