2022 (11) TMI 1483 - HC - Income Tax

Validity of order u/s 148A(d) and subsequent proceedings based on notice u/s 148 as barred by limitation - In the impugned order u/s 148A(d) AO has tried to justify the initiation of re-assessment proceeding by relying on an instruction being No. 01/2022 dated 11th May, 2022 issued by CBDT. HELD THAT - Admittedly, the issuance of notice and initiation of re-assessment proceeding are beyond six years and, prima facie, it is barred by limitation both under the old Act as well as under newly amended provision relating to Section 147 of the Act. This matter deserves adjudication by calling for affidavits from the respondents and also of the view that the petitioner has been able to make out a prima facie case for an interim order by raising the issue of jurisdiction of the assessing officer concerned in initiating the impugned re-assessment proceeding. Let the respondents file affidavit-in-opposition within four weeks; petitioner to file reply thereto, if any, within two weeks thereafter. The matter shall appear for final hearing in the monthly list of February, 2023.

Summary

Issues involved: Challenge to impugned order u/s 148A(d) of Income Tax Act, 1961 for assessment year 2014-15 and subsequent proceedings based on notice u/s 148 of the Act, on grounds of jurisdiction and limitation.

Jurisdiction Issue: The petitioner challenged the impugned order dated 27th July, 2022 u/s 148A(d) of the Income Tax Act, 1961, and subsequent proceedings based on the notice dated 30th June, 2021 u/s 148 of the Act, citing jurisdictional issues of the assessing officer. The assessing officer's justification for re-assessment relied on CBDT instruction No. 01/2022 dated 11th May, 2022, despite the notice being issued beyond the six-year limitation period as per Section 149(1)(b) of the Act. The Court found a prima facie case for an interim order based on the petitioner's challenge to the assessing officer's jurisdiction in initiating the re-assessment proceedings.

Procedural Directions: The Court directed the respondents to file an affidavit-in-opposition within four weeks, with the petitioner given two weeks to file a reply thereafter. The matter was scheduled for final hearing in the monthly list of February, 2023. Additionally, the Court ordered a stay on any further proceedings based on the impugned order dated 27th July, 2022 until the writ petition is disposed of, ensuring no further action is taken on Annexure P-4 to the writ petition during this period.