Pcg Finvest Limited (Formerly Known as Subhra Finvest (India) Ltd) v. Assistant Commissioner of Income Tax, Circle 22(2), Delhi & Ors.
Case brief
What is this about?
This judgment addresses challenges against reassessment notices under the Income-tax Act, 1961. The court clarified the interplay between Section 147 and 153C, affirming AO jurisdiction notwithstanding the faceless regime. It established principles for computing limitation periods under Section 149, requiring the exclusion of specific periods related to stay orders and show-cause replies. Instead of deciding individual merits, the High Court issued directions to Assessing Officers to evaluate each notice's survivability against established legal precedents and pass reasoned orders.
What did the court decide?
The High Court directed concerned Assessing Officers to evaluate individual reassessment notices in light of Supreme Court and High Court precedents (Rajeev Bansal, Ram Balram, T.K.S. Builders). Officers must determine if notices survive based on the computed surviving limitation period and pass reasoned orders. Petitioners were given liberty to file submissions within three weeks.