NRI's Challenge to Income Tax Assessment for 2018-19 Dismissed; Court Upholds Extended Timeline Validity.

The HC dismissed the petition challenging the assessment order under Section 144C of the Income Tax Act, 1961, for the assessment year 2018-19. The petitioner, an NRI, argued the order was beyond the statutory limitation period. However, the court found the assessment complied with the extended timeline under the Taxation and Other Laws Amendment Act, and Section 144C was applicable, as it is a procedural provision beneficial to NRIs. The court concluded the petitioner's objections lacked merit, affirming the validity of the assessment order. No separate judgment was delivered by the judge.

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Issues involved:
The issues involved in this case are (1) Jurisdiction of assessment under Section 144 C of the Income Tax Act, 1961 for a Non-Resident Indian (NRI) for the assessment year 2018-19, and (2) Barred by limitation assessment order dated 22.07.2022.

Jurisdiction of assessment under Section 144 C:
The petitioner challenged the assessment order dated 22.07.2022, arguing that as an NRI, the assessment should not have been completed under Section 144 C for the assessment year 2018-19. The petitioner contended that the final assessment order was beyond the limitation prescribed under the statute, as it was dated after the 18-month period from the end of the assessment year. However, the Senior Standing Counsel for the Income Tax Department argued that Section 144 C is a procedural provision introduced from 01.04.2020, including NRIs as "eligible assessees" and providing a machinery for faceless assessment. The legislation's intention was clarified in the Explanatory Memorandum of the Finance Bill, 2020, stating that any variation after 01.04.2020 affecting the assessee's interest would be applicable.

Barred by limitation assessment order:
The Revenue's counsel provided a timeline indicating that the assessment process was duly followed, with notices issued, personal hearings conducted, objections filed, and the final assessment order passed within the prescribed time frame. The Taxation and Other Laws Amendment Act extended the limitation for finalizing the assessment order for the assessment year 2018-19 up to 30th September 2021. The final assessment order was passed within the extended timeline, complying with the provisions of Section 144 C. The court found that Section 144 C is a machinery provision beneficial to assessees, including NRIs, and dismissed the petitioner's objections regarding jurisdiction and limitation, as they lacked merit and substance.

Separate Judgment by Judge:
No separate judgment was delivered by the judge in this case.

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