The Calcutta High Court (HC) has held that the Initiation of re-assessment proceeding beyond six years is barred by limitation and is not valid.
Indra MohanVanijya Private Limited, the petitioner has challenged the impugned order and notice dated 27th July 2022 under Section 148A(d) and Section 148 of the Income Tax Act, 1961 relating to the assessment year 2013- 2014, and, all subsequent proceedings based on the impugned notice dated 23rd June 2021 under Section 148 of the Income Tax Act, 1961, mainly on the ground of jurisdiction of the assessing officer in the issuance of the impugned notice under Section 148 of the Act being barred by limitation under Section 149(1)(b) of the Income Tax Act, 1961.
In the impugned order under Section 148A(d) of the Act, the assessing officer has tried to justify the initiation of the re-assessment proceeding by relying on instruction No.01/2022 dated 11th May 2022 issued by CBDT.
Justice Md. Nizamuddin observed that the issuance of notice and initiation of re-assessment proceedingare beyond six years andis barred by limitation both under the old Act as well as under newly amended provision relating to Section 147 of the Income Tax Act.
The Court viewed that this matter deserves adjudication by calling for affidavits from the respondents and the petitioner has been able to make out a prima facie case for an interim order by raising the issue of jurisdiction of theassessing officer concerned in initiating the impugned re-assessment proceeding.Subscribe Taxscan Premium to view the Judgment
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