2024 (8) TMI 1188

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....ction 147 read with Section 144 and Section 144B of the Income-tax Act (for short "the Act"). At the outset, we may note the substantive prayers which reads thus: (a) that this Hon'ble Court may be pleased to issue a Writ of Certiorari or a Writ in the nature of Certiorari or any other appropriate Writ, Order or direction, calling for the records of the Petitioner's case and after going into the legality and propriety thereof, to quash and set aside the notice dated 07.04.2021 issued under section 148 ("Exhibit A") which is now treated as deemed show cause notice under section 148A(b) in pursuance of issue letter dated 26.05.2022 ("Exhibit C"); the order dated 25.07.2022 passed under section 148A(d) of the Act ("Exhibit D")....

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....d 20.02.2024 under section 271F (Exhibit "G3"). ii) to forthwith forbear from taking any steps whatsoever, including issue further notices in furtherance of the assessment order dated 26.05.2023 passed under section 147 r.w.s 144 read with section 144B ("Exhibit F1"); the impugned Notice of Demand dated 26.05.2023 under section 156 ("Exhibit F2"); the Penalty Order dated 19.02.2024 under section 271(1)(b) (Exhibit "G1"); the Penalty Order dated 20.02.2024 under section 271 (1) (c) (Exhibit "G2") and the Penalty Order dated 20.02.2024 under section 271F (Exhibit "G3"). (c) That this Hon'ble Court be pleased to issue a writ of prohibition or a writ in the nature of prohibition or any other appropriate writ, order or dire....

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....less the case falls under clause (b) or clause (c); b) if four years, but not more than six years, have elapsed from the end of the relevant assessment year unless the income chargeable to tax which has escaped assessment amounts to or is likely to amount to one lakh rupees or more for that year." 5. The period of six years relevant to the assessment year 2013-14 expired on 31 March, 2020. Thus, the amendment as incorporated in Section 149 (1) (b) was not applicable for the re-opening/reassessment in question, which was for the assessment year 2013-14. It appears that overlooking such position, the Assessing officer, under the presumption that the amendment to the said provision as incorporated by Finance Act, 2022 with effect f....

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....d within a period of six years from the end of the relevant assessment year. The Notifications issued under TOLA, viz., Notification No.20/2021, which is relied upon by the Revenue, only cover those cases where 31st March, 2021 was the end date of the period during which the time limit, specified in, or prescribed or notified under the Income Tax Act falls for completion. The limitation under the Income Tax Act, 1961(erstwhile Section 149) for reopening the assessment for the AY 2013-14 expired on 31st March 2020. Hence, Notification No.20/2021 did not apply to the facts of the present case, viz., reopening notice for the AY 2013-14. Therefore, the Revenue could not issue any notice under Section 148 beyond 31st March 2021 and hence, even t....

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....ed 25 July, 2022 under section 148 of the Act was issued to the petitioner for AY 2013-14 as noted above. As the provisions of Section 149 would apply, the limitation to issue notice under section 148 would expire if four years but not more than six years have elapsed from the end of the relevant assessment year, as per the provisions of Section 149 (1) (b), as the provision stood prior to the amendment as incorporated by the Finance Act, 2022 brought into effect from 1 April, 2022. In the present case, admittedly, Section 148 notice was issued on 25 July, 2022, which is almost two years after the limitation period had expired on 31 March, 2020, which was further extended upto 31 March, 2021 because of the notification issued as a result of....