Limitation Period for Section 263 Orders Starts from Original Assessment, Notice Deemed Time-Barred and Jurisdiction Lacking.

The HC concluded that the period of limitation for passing orders under Section 263 of the Income Tax Act, 1961, should be calculated from the original assessment order, as clarified by the SC. Consequently, the notice was deemed without jurisdiction and time-barred. The petition was allowed, as respondents did not contest this position.

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Issues involved: Determination of the period of limitation for passing orders u/s 263 of the Income Tax Act, 1961.

Summary:
The High Court considered a petition requesting early listing based on a recent Supreme Court decision. The main issue was whether the period of limitation for passing orders u/s 263 of the Income Tax Act should be calculated from the original assessment order or the reassessment order. The Supreme Court's ruling in Commissioner of Income Tax Vs. Industrial Development Bank of India Ltd. clarified that the limitation starts from the original assessment order, not the reassessment order. This decision was supported by a previous case law. Consequently, the High Court held that the notice in question was without jurisdiction and time-barred, and thus set it aside. The respondents did not dispute this legal position, leading to the petition being allowed.

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