2023 (1) TMI 67 - HC - Income Tax

Reopening of assessment u/s 147 - period of limitation - notice beyond the period of six years - HELD THAT - The impugned notice under Section 148 of the Income Tax Act, 1961 seeking to reopen the Assessment Year for 2013-14, was issued on 31st March, 2021 which is beyond the period of six years of the close of the Assessment Year and therefore, it is clearly time-barred. On the above short ground, the impugned notice dated 31st March, 2021 as well as all consequential proceedings thereto including the Assessment order dated 30th March, 2022 and the consequential demand are hereby quashed. Writ petition is allowed.

Summary

The High Court of Orissa ruled that a notice issued under Section 148 of the Income Tax Act, 1961 to reopen the Assessment Year 2013-14 on 31st March, 2021 was time-barred as it exceeded the six-year limit. Consequently, the notice, assessment order, and demand were quashed. The writ petition was allowed accordingly.