Assessment Year in Dispute falls beyond the period of Ten years stipulated u/s 149: Delhi HC Restrains Reassessment Proceedings [Read Order]
The bench relied on the judgment of the coordinate bench in the case of The Pr. Commissioner of Income Tax—Central-1 v. Ojjus Medicare Pvt. Limited, set aside the impugned notice
Delhi High Court – Delhi HC ruling on reassessment period – Section 149 – TAXSCAN
Delhi High Court – Delhi HC ruling on reassessment period – Section 149 – TAXSCAN
In a recent ruling, the Delhi High Court held that the assessment in question falled beyond the period of ten years stipulated under Section 149 of the Income Tax Act, 1961, and restrained the department from initiating reassessment proceedings for the assessment year ( AY ) 2015-16.
In this case, the petitioner, KAD Housing Pvt Ltd has approached the High Court issued under Section 148 of the Income Tax Act, 1961 for reopening the assessment for the assessment year ( AY ) 2015-16.
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The issue raised in this case is whether the impugned notice has been issued beyond the period of the limitation provided under Section 149( 1 ) of the Income Tax Act.
The petitioner pointed out that the first proviso to Section 149(1) of the Act states that no notice under Section 148 of the Income Tax statute can be issued for any assessment year beginning on or before April 1, 2021, if such notice, or one under Sections 153A or 153C, was time-barred under the provisions of Section 149(1)(b), 153A, or 153C as they stood before the Finance Act, 2021.
A tabular statement was submitted by the council on behalf of the assesse which showed that the assessment for the AY 2015-16 falls beyond the period of ten years as stipulated under Section 149 read with Section 153C of the Act.
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The bench relied on the judgment of the coordinate bench in the case of The Pr. Commissioner of Income Tax—Central-1 v. Ojjus Medicare Pvt. Limited, in which the bench held that ‘the period of ten years is required to be reckoned from the end of the assessment year relevant to the year in which the notice under Section 148 of the Income Tax Act is issued.;
By relying on the above judgment, the High Court, comprising of Justice Vibhu Bakhru and Justice Swarna Kanta Sharma, set aside the impugned notice.
To Read the full text of the Order CLICK HERE
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