Income Tax assessments cannot be reopened after the limitation period unless total income escaping assessment exceeds Rs.50 lakhs.

J U D G M E N T

Heard Sri.Alexander Joseph Markos, the learned counsel for the petitioner, as well as Sri.Christopher Abraham, the learned Standing Counsel for the Income Tax Department.

2. The petitioner is an assessee under the provisions of the Income Tax Act , 1961 (hereinafter referred to as ‘the Act’). The dispute in this writ petition is with reference to the assessment year 2016-17. By Ext.P6 notice issued under the provisions of Section 148 of the Act, dated 24.03.2023, the assessment of the petitioner for the afore year was sought to be reopened. The petitioner filed a detailed reply, as evidenced by Ext.P7, essentially contending that the period for initiation of the assessment has already come to an end and, therefore, the assessment cannot be completed. The plea as regards limitation was pointed out, insofar as the extended period of limitation could be invoked only in a situation where the total income which is alleged to have escaped assessment is in excess of Rs.50 lakhs. According to the petitioner, in the case at hand, the escapement, if any, was below Rs.50 lakhs. Therefore, according to the petitioner, the extended period of limitation could not be applied.

3. The issue as above has already been decided in favour of the petitioner by virtue of Ext.P9 judgment dated 24.05.2023 of the High Court of Karnataka, with reference to the provisions of Section 148 and 148A, as well as the provisions of Section 149 (1) of the Act, finding that, if the total income stated to have escaped assessment is less than Rs.50 lakhs, the extended period of limitation could not be applied.

4. In view of the afore declaration, I am of the opinion that the notice issued against the assessee – Ext.P6 cannot be sustained.

Therefore, this writ petition would stand allowed, setting aside Exts.P5 order and P6 notice issued by the 1^st respondent herein.

Sd/-