2025 (2) TMI 985 - HC - Income Tax

Notice under Section 148 of Income Tax Act for 2016-17 invalidated due to expired six-year limitation period.

The Delhi HC set aside a notice issued under Section 148 of the Income Tax Act, 1961 for the assessment year 2016-17, ruling it was barred by limitation ... Validity of reassessment proceedings beyond period of limitation - HELD THAT:- In the present case, the period of six years for the relevant AY 2016-17, thus, expired on 31.03.2022. The impugned notice has been issued thereafter, and the same is, thus, barred by limitation. The Delhi High Court, in a case concerning a notice issued under Section 148 of the Income Tax Act, 1961 for the assessment year 2016-17, found that the notice was barred by limitation as the period of six years had expired before its issuance. The court relied on legal precedents such as the decision in Manju Somani v. Income Tax Officer Ward-70(1) and Union of India & Others v. Rajeev Bansal to support its ruling. As a result, the court set aside the impugned notice, allowing the petition in favor of the petitioner. The respondent did not provide a sufficient counter argument, leading to the court's decision in favor of the petitioner.