2022 (7) TMI 1395 - HC - Income Tax

Validity of reopening of assessment - assessment barred by limitation - Time limit for notice u/s 149 - HELD THAT - As decided in BRAHM DATT case 2018 (12) TMI 832 - DELHI HIGH COURT that the amendment of Section 149 of the Act by Finance Act, 2012, which extended limitation for reopening assessment to sixteen years could not be resorted for reopening proceedings concluded before amendment came into effect. Admittedly the amendment came into effect on 1st July, 2012 and the notice under Section 148 was issued on 19th August, 2013. The Tribunal after taking note of the decision in Brahm Datt supra took into consideration of the facts of the assessee s case and found that notice for reopening the assessment issued on 19th August, 2013 in respect of the assessment year under consideration, Assessment year 2005-06 was time barred. The view taken by the learned Tribunal does not call for any interference - Decided against revenue.

Summary

Issues involved:
Delay in filing the appeal, interpretation of section 149[1][c] of the Income Tax Act, 1961 regarding limitation for reopening assessments.

Delay in filing the appeal:
The High Court of Calcutta noted a delay of 757 days in filing the appeal. Upon reviewing the relevant dates, the Court found that the appellant/revenue could benefit from the order passed by the Hon'ble Supreme Court extending the period of limitation for preferring appeals under various statutes. Consequently, the Court allowed the application and condoned the delay.

Interpretation of section 149[1][c] - Limitation for reopening assessments:
The appeal filed by the revenue under Section 260A of the Income Tax Act, 1961 was directed against an order passed by the Income Tax Appellate Tribunal related to the assessment year 2005-06. The revenue raised substantial questions of law concerning the interpretation of section 149[1][c] of the Act. The Court considered whether the proceedings initiated under section 148 of the Act for the year 2005-06 were barred by limitation as per section 149[1][c]. The tribunal had allowed the assessee's appeal, citing legal positions and decisions, including the case of Brahm Datt vs. Assistant Commissioner of Income Tax. The tribunal found that the notice for reopening the assessment issued in 2013 for the year 2005-06 was time-barred based on precedents like Brahm Datt and SMT. N. ILLAMATHY vs. Income Tax Officer. Consequently, the Court dismissed the appeal filed by the revenue, upholding the tribunal's decision that the notice for reopening the assessment was time-barred. The substantial questions of law were answered against the revenue, and the application was closed.

This detailed analysis of the judgment by the High Court of Calcutta provides insights into the issues of delay in filing the appeal and the interpretation of section 149[1][c] of the Income Tax Act, 1961 regarding the limitation for reopening assessments.