The petitioner challenged the notice dated 28th July 2022 issued under Section 148 of the Income -tax Act, 1961 \u00a0seeking to reopen petitioner\u2019s assessment for AY 2013-14 on\u00a0 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. \u00a0For 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 14ITR 233 settled principles of law, the reopening of the AY 2013-14 after 31st March 2021 is invalid, without jurisdiction and barred by limitation. \u00a0In a detailed order the Honourable High Court considering various case laws on the subject and provisions\u00a0 , the Court up held the contention. of \u00a0the petitioner \u00a0and held that \u00a0for 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.\u00a0 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. \u00a0Accordingly 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 . \u00a0(WP No.\u00a0 1945 of 2003 dt\u00a0 15 th January , 2024 ) ( AY. 2013 -14 )<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 148A: Reassessment – Conducting inquiry, providing opportunity before issue of notice – Assessment year 2013 -14 \u2013 Six years expired on 31 st March , 2020 – Notice issued on 28 th July , 2022 – Notice issued beyond six years \u2013 Barred by limitation \u2013 Taxation and other laws ( Relaxation and Amendment of certain provisions , Act, 2020 (TOLA) has not applicable for the Assessment year 2013 -14 \u2013 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 \u2013 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 ] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-38389","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-9Zb","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/38389","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=38389"}],"version-history":[{"count":2,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/38389\/revisions"}],"predecessor-version":[{"id":46977,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/38389\/revisions\/46977"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=38389"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=38389"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=38389"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}