2022 (7) TMI 224 - HC - Income Tax

Reopening of assessment u/s 147 - validity of corrigenda - Period of limitation to issue notice - typographical error in the notice issued wherein the assessment year has been mentioned as 2015-16 instead of 2010-11 - By way of corrigendum dated 11.04.2017, the authorities have sought to correct the mistake in the original notice and have stated that the same has been issued for the assessment year 2010-2011 and not 2015- 2016 - HELD THAT - The first notice categorically states that the authorities intend to reopen the assessment to determine to escaped income for the assessment year 2015-2016. The authorities get the jurisdiction to reopen the assessment upon issuance of a notice as contemplated under Section 148 and by the first notice, the authorities have invoked their jurisdiction to reopen the assessment for the assessment year 2015-2016 and not 2010-2011. With regard to the assessment year 2010- 2011, it can be said that the authorities have sought to invoke their jurisdiction by issuance of notice dated 11.04.2017 which is styled as corrigendum. By the said corrigendum, it cannot be said that it has sought to cure a procedural irregularity as contemplated under Section 292- B of the Income Tax Act, 1961 and it has to be held that they have invoked the jurisdiction to reopen the assessment for the year 2010-2011 only after issuance of the said corrigendum on 11.04.2017 which is clearly time barred. Even otherwise as mentioned above, the petitioner has been able to demonstrate that though first notice is dated 31.03.2017, the same has been issued only on 04.04.2017, which is time barred. WP succeeds.

Summary

Issues:
1. Reopening of assessment for the year 2010-2011.
2. Time-barred nature of the proposed reopening of assessment.

Analysis:
The petitioner filed a writ petition challenging the respondent authorities' attempt to reopen the assessment for the year 2010-2011, claiming it was time-barred. The respondents argued that the reopening was within the legal timeframe and requested the dismissal of the petition. Both parties acknowledged that as per Section 149 of the Income Tax Act, 1961, the assessment could be reopened within six years from the end of the relevant assessment year.

The authorities initially issued a notice dated 31.03.2017 mentioning the assessment year as 2015-2016, which was later corrected through a corrigendum on 11.04.2017 to state the correct assessment year as 2010-2011. The petitioner contended that the notice was actually issued on 04.04.2017, which would make it time-barred as it should have been issued by 31.03.2017. The respondents failed to prove that the notice was issued on 31.03.2017 as claimed.

The petitioner argued that the corrigendum should be treated as a fresh notice due to a material mistake regarding the assessment year, not just a procedural irregularity. Therefore, even if the first notice was considered to be issued on 31.03.2017, the corrigendum issued on 11.04.2017 would still be time-barred. The court agreed with the petitioner's arguments and held that the proposed reopening of the assessment for the year 2010-2011 was indeed time-barred.

Consequently, the court set aside the initial notice dated 31.03.2017, the corrigendum dated 11.04.2017, and the order overruling the petitioner's objection. The court ruled in favor of the petitioner, determining that the authorities' attempt to reopen the assessment for the year 2010-2011 was time-barred, thereby disposing of the writ petition in favor of the petitioner.