Writ petition challenging reassessment under Sections 148A(d) and 148 for AY 2016-17 on the ground that escaped income (INR 81,600) was below the Rs. 50 lakh threshold required for the extended limitation period. Following Ganesh Dass Khanna, the court quashed the order and notice.
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$~27
Through: Mr. Shivang Bansal, Advocate Versus
PR COMMISSIONER OF INCOME TAX DELHI-10 & ANR. ..... Respondents Through: Mr. Abhishek Maratha, Sr. SC
CORAM: HON'BLE MR. JUSTICE YASHWANT VARMA HON'BLE MR. JUSTICE PURUSHAINDRA KUMAR KAURAV
“ 26. Section 149(1) of the amended 1961 Act mandates that no notice under section 148 would be issued for the relevant assessment year if three (03) years have elapsed from the end of the said assessment year. The Assessing Officer can take recourse to the extended limitation period if the conditions precedent prescribed in clause (b) of sub-section (1) of section 149 are fulfilled. In other words, in a case where three (03) years from the end of the relevant assessment year have elapsed, the Assessing Officer can issue a notice under section 148 provided the conditions prescribed in clause (b) of section 149(1) of the amended 1961 Act are fulfilled. The relevant part of the said provision reads as follows:
This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 03/07/2025 at 23:29:12
“149. Time limit for notice.-(1) No notice under section 148 shall be issued for the relevant assessment year,(a) if three years have elapsed from the end of the relevant assessment year, unless the case falls under clause (b);
(b) if three years, but not more than ten years, have elapsed from the end of the relevant assessment year unless the Assessing Officer has in his possession books of account or other documents or evidence which reveal that the income chargeable to tax, represented in the form of asset, which has escaped assessment amounts to or is likely to amount to fifty lakh rupees or more for that year.”
(emphasis is ours)
27. A careful perusal of clause (b) of section 149 would show that one of the conditions for triggering the extended period, which goes up to ten (10) years in cases where three (03) years have elapsed, is that income chargeable to tax which has escaped assessment amounts to, or is likely to amount to Rs. 50 lakhs or more for the assessment year in issue.
28. Therefore, after the coming into force of the Finance Act, 2021, in cases where, for the relevant assessment year, the alleged escaped income was less than Rs. 50 lakhs, notice under section 148 could only be issued for commencement of reassessment proceedings within the limitation period provided in clause (a) of section 149(1) of the amended 1961 Act.”
YASHWANT VARMA, J.
PURUSHAINDRA KUMAR KAURAV, J.
MARCH 12, 2024/ p’ma
This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 03/07/2025 at 23:29:12
1 issue framed by the court
Whether a Section 148 notice can be issued where escaped income is below Rs. 50 lakh and beyond three years from the assessment year.
Colour shows how this judgement treated each authority
Ganesh Dass Khanna v. ITO & AnrRelied on¶3
[2023 SCC OnLine Del 7286] · Who else cites this
3 provisions across 1 enactments
Dushyant Poddar
PR Commissioner of Income Tax Delhi-10
Yashwant Varma
Purushaindra Kumar Kaurav
As recorded by the court registry
A petition under Article 226 of the Constitution asking a High Court to issue a writ against the State or a public authority in a civil matter.
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