Allowed¶22

Prakash Industries Limited v. Assistant Commissioner of Income Tax, Central Circle 30, Delhi & Anr.

Delhi HC16 Jan 2025W.P.(C)/13411/2024

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Prakash Industries Limited v. Assistant Commissioner of Income Tax, Central Circle 30, Delhi - W.P.(C) 13411/2024 (Delhi HC, 16.01.2025): reassessment notice under Section 148 Income Tax Act, 1961 for AY 2013-14 dated 02.05.2024 held barred by limitation; six-year period expired 31.03.2020; first proviso to Section 149(1)(b); Section 148A(b) notice and Section 148A(d) order also impugned; Manju Somani (2024:DHC:5411-DB) and Union of India v. Rajeev Bansal (2024 SCC OnLine SC 2693) relied on; notice set aside; petition allowed.

What did the court decide?

Impugned notice dated 02.05.2024 issued under Section 148 of the Act set aside; pending application disposed of. ¶22

Prakash Industries Limited Vs Assistant Commissioner of Income Tax… — Income Tax | Delhi HC (2025)

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$~40

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IN THE HIGH COURT OF DELHI AT NEW DELHI

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- W.P.(C) 13411/2024 and CM APPL. 56094/2024

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PRAKASH INDUSTRIES LIMITED .....Petitioner Through: Ms Ragini Handa, Mr Ajay Wadhwa and Mr Ujjawal Jain, Advocates.

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versus

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ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 30, DELHI & ANR. .....Respondents Through: Mr Anurag Ojha, Senior Standing Counsel with Mr V.K. Saksena, Ms Hemlata Rawat, Mr Subham Kumar and Mr Dipak Raj, Advocates.

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CORAM: HON'BLE THE ACTING CHIEF JUSTICE HON'BLE MR. JUSTICE TUSHAR RAO GEDELA

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O R D E R % 16.01.2025

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The petitioner has filed the present petition, inter alia , impugning a notice dated 02.05.2024 (hereafter the impugned notice ) issued under Section 148 of the Income Tax Act, 1961 (hereafter the Act ) for the assessment year (AY) 2013-14.

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The petitioner also impugns the notice issued under Section 148A(b) of the Act, and the order passed under Section 148A(d) of the Act prior to the issuance of the impugned notice.

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The learned counsel appearing for the petitioner submits that the issue stands covered by the decision of this Court in Manju Somani v. Income Tax Officer Ward-70(1) & Ors: Neutral Citation: 2024:DHC:5411-DB.

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The learned counsel appearing for the petitioner also referred to the

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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 24/01/2025 at 16:04:39

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decision of the Supreme Court in Union of India & Others v. Rajeev Bansal : 2024 SCC OnLine SC 2693 and drew the attention of this Court to the following passages from the said judgment:

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“46. The ingredients of the proviso could be broken down for analysis as follows: (i) no notice under Section 148 of the new regime can be issued at any time for an assessment year beginning on or before 1 April 2021; (ii) if it is barred at the time when the notice is sought to be issued because of the “time limits specified under the provisions of” 149(1)(b) of the old regime. Thus, a notice could be issued under Section 148 of the new regime for assessment year 2021-2022 and before only if the time limit for issuance of such notice continued to exist under Section 149(1)(b) of the old regime. *** *** ***

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The first proviso to Section 149(1)(b) requires the determination of whether the time limit prescribed under Section 149(1)(b) of the old regime continues to exist for the assessment year 2021-2022 and before. Resultantly, a notice under Section 148 of the new regime cannot be issued if the period of six years from the end of the relevant assessment year has expired at the time of issuance of the notice. This also ensures that the new time limit of ten years prescribed under Section 149(1)(b) of the new regime applies prospectively. For example, for the assessment year 2012-2013, the ten year period would have expired on 31 March 2023, while the six year period expired on 31 March 2019. Without the proviso to Section 149(1)(b) of the new regime, the Revenue could have had the power to reopen assessments for the year 2012-2013 if the escaped assessment amounted to Rupees fifty lakhs or more. The proviso limits the retrospective operation of Section 149(1)(b) to protect the interests of the

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assesses.”

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In the present case, the period of six years from the end of the relevant (AY) 2013-14 expired on 31.03.2020. The impugned notice has been issued thereafter, and the same is thus barred by limitation.

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The learned counsel for the respondent concurs with the aforesaid view.

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In view of the above, the impugned notice is set aside.

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The petition is allowed in the aforesaid terms. Pending application also stands disposed of.

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VIBHU BAKHRU, ACJ

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TUSHAR RAO GEDELA, J

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JANUARY 16, 2025 RK Click here to check corrigendum, if any

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Prakash Industries Limited v. Assistant Commissioner of Income Tax, Central Circle 30, Delhi & Anr.

Case brief

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Prakash Industries Limited v. Assistant Commissioner of Income Tax, Central Circle 30, Delhi & Anr.

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