Point of Law: provisions of Section 149(1) of the Act of 1961 are plain and unambiguous. Bare reading of clause (a) of sub-section (1) of Section 149 leaves no manner of doubt that normal period of limitation for issuance of notice under Section 148 of the Act of 1961 is four years from the end of the relevant assessment year, unless the case falls under clause (b) or clause (c).

JUDGMENT :

1. Heard Sri. Parv Agarwal, learned counsel for the petitioner and Sri. Gaurav Mahajan, learned Senior Standing Counsel for the Income Tax Department.

2. This writ petition has been filed praying for the following reliefs:

“(a) Issue a writ, order or direction in the nature of certiorari quashing the notice dated 30.03.2021 issued by the respondent no. 2 under Section 148 of the Act as also the order dated 28.02.2022 passed by respondent no. 3, rejecting the objections filed by the petitioner against the reasons to believe for assumption of jurisdiction against the petitioner for the Assessment Year 2015-16.

(b) Issue a writ, order or direction in the nature of mandamus restraining the respondents from proceeding with the reassessment proceedings against the petitioner for the AY-2015-16.”

3. The only argument advanced by the learned counsel for the petitioner before us is that the normal period of limitation for issuing notice under Section 148 of the Income Tax Act, 1961 (hereinafter referred to as the Act of 1961) would be six years where escapement of income from tax is one lacs or more. In this regard, he referred to the provision of Section 149(1) (b) of the Act of 1961. He further submits that since prior approval of the Principal Commissioner in terms of provisions of Section 151 of the Act of 1961 has not been obtained for issuance of notice under Section 148(1) of the Act of 1961, therefore, issuance of notice after expiry of four years but before expiry of six years, the notice is bad and without jurisdiction. No other arguments have been made before us by the learned counsel for the petitioner.

4. Sri. Gaurav Mahajan, learned Senior Standing Counsel appearing for the Income Tax Department submits that the normal period of limitation for re-opening as provided under Section 149(1) (a) of the Act of 1961 is four years in all cases but where four years have expired but not six years and escaped assessment amounts to or likely to amount to Rs. one lac or more for that year, then still notice may be issued but after obtaining approval of the Principal Commissioner as per the provisions of Section 151 of the Act of 1961.

5. Since, in the present set of fact, the normal period of limitation for re-opening for the assessment year 2015-2016 was available till 31.3.2020 which was extended by the Taxation and other Law (Relaxation of Certain Provisions) Ordinance, 2020 and the notification issued thereunder, taking into the situation created due to pandemic Covid-19, the normal period of limitation was available till 31.3.2021. The impugned notice has been issued prior to the expiry of normal period of limitation, therefore, the impugned notice does not suffer from any infirmity and is valid.

6. We have carefully considered the submissions of the learned counsel for the parties.

7. Section 149 of the Act of 1961 provides for limitation for issuance of notice under Section 148. Section 149 as is extended prior to amendment of Finance Act, 2021 is reproduced below:

“149. Time limit for notice:

(1) No notice under section 148 shall be issued for the relevant assessment year:

(a) if four years have elapsed from the end of the relevant assessment year, unless the case falls under clause (b) or clause (c).

(b) if four years, but not more than six years, have elapsed from the end of the relevant assessment year unless the income chargeable to tax which has escaped assessment amounts to or is likely to amount to one lakh rupees or more for that year.

(c) if four years, but not more than sixteen years, have elapsed from the end of the relevant assessment year unless the income in relation to any asset (including financial interest in any entity) located outside India, chargeable to tax, has escaped assessment.”

8. The provisions of Section 149(1) of the Act of 1961 are plain and unambiguous. Bare reading of clause (a) of sub-section (1) of Section 149 leaves no manner of doubt that normal period of limitation for issuance of notice under