Reassessment Notice u/s 148 Issued after expiry of limitation period: ITAT Quashes Income Tax Notice [Read Order]
The Tribunal quashed a reassessment notice issued under Section 148 of the Income-tax Act, 1961 as the notice was barred by limitation.
Reassessment Notice - Taxscan
Reassessment Notice - Taxscan
The Kolkata Bench of the Income Tax Appellate Tribunal (ITAT) quashed the reassessment notices issued under Section 148 of the Income Tax act on the legal ground of being barred by limitation.
Sanjay Kumar Bhutra (assessee) was issued a notice under Section 148 of the Income-tax Act for the Assessment Year (AY) 2013-2014 on July 19, 2022. Aggrieved by the order, the assessee filed an appeal before the Commissioner of Income Tax (appeals)[CIT(A)].
The CIT(A) dismissed the appeal. Aggrieved by the CIT(A)’s order, the assessee filed an appeal before the ITAT. The assessee challenged the impugned order and the notices issued under Section 148 on the legal ground that they were bad in law as they were issued beyond the permissible period of limitation.
The Counsel for the assessee argued that the notices were invalid by relying on the Supreme court judgement in Union of India V. Rajeev Bansal.
The counsel for the Revenue argued that the assessee failed to submit any written submission before the lower authorities therefore the appeal of the assessee was dismissed by the lower authorities.
The two-member bench, comprising Rajesh Kumar (Accountant Member) and Pradip Kumar Choubey (Judicial Member), considered the facts of the case and the legal position, noting that the issue was squarely covered by the judgment of the Hon'ble Supreme Court in the case of Rajeev Bansal.
The Tribunal observed that the notice under Section 148 for AY 2013-2014 was issued on 19-07-2022. Applying the ratio of the Rajeev Bansal case, the Tribunal noted that the Assessing Officer (AO) ought to have gotten 7 days time to issue the 148 notice, which would have extended the limit only up to 22-06-2022.
The Tribunal found merit in the argument of the assessee's counsel that the issuance of the notice under Section 148 on July 19, 2022, was bad in law by keeping in view the said judgment and considering the present facts of the case.
The Tribunal held that all the notices were quashed, being barred by limitation. The appeal of the assessee was allowed.
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