Issuance of Notice and Initiation of Reassessment Beyond Six Years is Barred by limitation: Calcutta HC [Read Order]

In a recent case, the Calcutta High Court held that issuance of notice and initiation of reassessment beyond six years is barred by limitation.

Coplama Products Private Limited, the petitioner has challenged the impugned order dated 28th July 2022 under Section 148A(d) and Section 148 of the Income Tax Act, 1961 relating to the assessment year 2015-2016, and, all subsequent proceedings based on the impugned notice dated 28th April 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 Income Tax Act, 1961  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 Income Tax Act, 1961, the assessing officer has tried to justify the initiation of the re-assessment proceeding by relying on instruction No.01/2022 dated 11th May 2022issued by CBDT.

It was evident that the issuance of notice and initiation of re-assessment proceedings are beyond six years and, prima facie, it is barred by limitation both under the old Act as well as under the newly amended provision relating to Section 147 of the Income Tax Act, 1961.

The single-judge bench comprising Justice Md. Nizamuddin held that “the 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 the assessing officer concerned in initiating the impugned re-assessment proceeding.”

“There will be no further proceeding on the basis of the impugned order dated 28th July, 2022 being Annexure P-7 to the writ petition till the disposal of the writ petition.”, the Court held.

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