2024 (1) TMI 219 - HC - Income Tax

Validity of reopening of assessment u/s 147 as time barred - window available to the respondents/revenue for issuance of fresh notices, under the new regime available only between 01.04.2021 and 30.06.2021 - HELD THAT - Although opportunity was given to file a counter-affidavit, both on 23.05.2023 and thereafter, no counter-affidavit has been filed on behalf of the respondents/revenue. Respondents/revenue, has not brought on record anything that would demonstrate that the impugned issued under Section 148 of the Income Tax Act, 1961 was dispatched on the same date. As indicated what is on record is an email dated 16.07.2021, which is clearly suggestive of the fact that the aforementioned impugned notice was transmitted on the said date to the petitioner. Furthermore, a perusal of the impugned notice dated 30.06.2021 shows that it does not bear the time-stamp or the digital signature of the concerned Assessing Officer (AO). The obvious conclusion that one can arrive at is that the impugned notice was not dispatched on 30.06.2021. Given this position, revenue cannot but accept that the reassessment proceedings are time-barred. The AO could have issued a fresh notice, albeit under the new regime, only between 01.04.2021 and 30.06.2021. Clearly, the circumstances obtaining in the present case are that the impugned notice was issued after 30.06.2021, resulting in the proceedings being rendered time-barred.

Summary

Issues involved: Time-barred reassessment proceedings under the Income Tax Act, 1961 for Assessment Year 2013-14.

Summary:

Issue 1: Time-barred reassessment proceedings
The petitioner contended that the reassessment proceedings initiated against them were time-barred as the notice issued under Section 148 of the Income Tax Act, 1961 was dispatched after the window available for issuance of fresh notices. The petitioner's argument was supported by previous court orders. The respondent did not provide evidence to show that the notice was dispatched on the claimed date. The court concluded that the proceedings were indeed time-barred due to the late issuance of the notice, setting aside all related orders and notices. The writ petition was disposed of accordingly, and the interim order was vacated. The parties were instructed to act based on the digitally signed copy of the order.

This judgment highlights the importance of adhering to statutory timelines in initiating reassessment proceedings under the Income Tax Act, ensuring procedural fairness and legal compliance in tax matters.