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K. R. SHRIRAM, NEELA GOKHALE
New India Assurance Company Limited – Appellant
Versus
Assistant Commissioner of Income Tax Circle-3(2)(1) – Respondent
| Table of Content |
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| 1. the scope of judicial review in tax assessments focuses on compliance with statutory procedures. (Para 1 , 2) |
| 2. the issuance of notices under tax law must align with current legal provisions to maintain validity. (Para 21 , 23 , 34) |
| 3. failure to issue a notice within the prescribed time frame invalidates the tax officer's jurisdiction. (Para 24 , 36 , 40) |
JUDGMENT :
K.R. SHRIRAM, J.
1. This petition challenges (i) the notice dated 28th July 2022 issued under Section 148 of the INCOME TAX ACT , 1961 (the Act) seeking to reopen petitioner’s assessment for AY 2013-14, (ii) the order dated 27th July 2022 passed under Section 148 A(d) of the Act, and (iii) Central Board of Direct Taxes (CBDT) Instruction No.1 of 2022 dated 11th May 2022. According to petitioner, the said reopening notice, the order dated 27th July 2022 and the said Instruction are illegal, without jurisdiction, arbitrary, in violation of principles of natural justice, ultra vires the provisions of the Act and hence deserve to be set aside.
2. Petitioner is a Public Sector Undertaking operating under the control of Ministry of Finance, Government of India, viz., respondent no.3. Petitioner is engaged in th
The issuance of a notice under Section 148 of the Income Tax Act is barred by limitation if it exceeds the time limits specified in Section 149, as reaffirmed by the court.
The court ruled that the reassessment notices were invalid as they were issued after the limitation period, and no escapement of income represented as an asset was demonstrated.
The main legal point established in the judgment is the interpretation of the time limits for issuing notices for reopening assessments under the Income Tax Act, 1961, and the impact of the changes b....
Reassessment notice u/s.148 for AY 2017-18 issued after 3 years with escaped income below Rs.50 lakhs held barred by limitation under first proviso to section 149(1)(b), quashing proceedings.
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