2025 (2) TMI 1316 - HC - Income Tax

Reassessment for AY 2014-15 u/s147: whether s.149(1)(b) limitation barred notice after 31.03.2021; quashed.

The dominant issue was whether reassessment proceedings under s.147 could be initiated for AY 2014-15 after expiry of the permissible period under the ... Validity of reopening of assessment u/s 147 - period of limitation - if the escaped assessment amounted to Rupees fifty lakhs or more - scope of new regime - proviso to Section 149(1)(b) of the new regime - HELD THAT:- In the present case, the period of six years from the end of the relevant (AY) 2014-15 expired on 31.03.2021. The impugned notice has been issued thereafter, and the same is thus barred by limitation. See MANJU SOMANI [2024 (8) TMI 129 - DELHI HIGH COURT] - Decided in favour of assessee. Issues: Whether the notice issued under Section 148 of the Income-tax Act, 1961 (along with the preceding Section 148A(b) notice and the order under Section 148A(d)) for assessment year 2014-15 is barred by limitation and thus liable to be set aside.Analysis: The legal framework requires assessment reopening under Section 148 to respect the time-limits preserved by Section 149(1)(b) of the Act; where the earlier six-year period from the end of the relevant assessment year has expired prior to issuance of a Section 148 notice, the notice is time-barred. For assessment year 2014-15, the six-year period expired on 31.03.2021. The impugned Section 148 notice was issued after that date. The related procedural steps under Section 148A(b) and the order under Section 148A(d) preceding the notice do not cure the substantive defect of issuance beyond the preserved limitation period.Conclusion: The notice under Section 148 (and the related Section 148A(b)/148A(d) steps) for AY 2014-15 is barred by limitation and is set aside; decision is in favour of the assessee.