The Delhi High Court has quashed the reassessment order being failed to be passed within the prescribed time limit.
Nagesh Trading co, the petitioner challenged the show cause notice dated 2nd June 2022 issued under Section 148A(b) of the Income Tax Act, 1961 (the Act) as well as the order passed under Section 148A(d) of the Act and the notice issued under Section 148 of the Act, both dated 28th July 2022 for the Assessment Year 2017-18.
The Petitioner was issued a letter dated 2nd June 2022 under Section 148A(b) of the Act alleging that the Petitioner is a beneficiary of accommodation entries provided by the entities controlled by Mr Ashok Kumar Gupta and has booked non-genuine bogus sales in their books of accounts to the tune of Rs.3,02,00,636/-.
He states that the Petitioner had filed a reply dated 4th June 2022, wherein it was submitted that the impugned show cause notice dated 2nd June 2022 under Section 148A(b) of the Act had been wrongly issued to the Petitioner as the initial notice under the unamended Section 148 of the Act was issued to the Petitioner on 31st March 2021 and served to vide email on the same date.
It was contended that the Respondent failed to pass the re-assessment order within the prescribed time limit that ended on 31st March 2022. He further states that the Respondent, without taking into consideration the fact that the limitation for completing the re-assessment proceedings under the notice issued under Section 148 of the Act had already elapsed subsequently issued the impugned show cause notice dated 2nd June 2022 under Section 148A(b) of the Act.
A Coram of Justice Manmohan and Justice Manmeet Pritam Singh Arora quashed the show cause notice dated 2nd June 2022, as well as the order passed under Section 148A(d) of the Act and the notice issued under Section 148 of the Act, both dated 28th July 2022, for the Assessment Year 2017-18.
Mr Salil Kapoor with Mr Sumit Lalchandani and Mr Vibhu Jain, Advocates appeared for the assessee and Mr Abhishek Maratha appeared for the Revenue.
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