IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 05.01.2026 CORAM :

THE HONOURABLE MR.JUSTICE C.SARAVANAN and W.M.P.Nos.28280 and 28281 of 2023 Parthiban ... Petitioner Vs.

1.National Faceless Assessment Unit, Income Tax Department, Delhi.

2.Income Tax Officer, Non-Corporate Ward – 22(1), Chennai. ... Respondents Prayer: Writ Petition filed under Article 226 of the Constitution of India, for issuance of a Writ of Certiorari to call for the records pertaining to the impugned order dated 18.05.2023 bearing DIN No.ITBA/AST/S/147/2023- 24/1052949558(1) purportedly passed under Section 147 r.w.Section 144B, of the Income Tax Act, 1961, for the Assessment Year 2014-15, by the 1^st respondent to quash the same.

For Petitioner : Ms.T.V.Muthu Abirami For Respondent : Mr.Avinash Krishnan Ravi Junior Standing Counsel

ORDER

The petitioner is before this Court against the impugned Assessment Order dated 18.05.2023 passed under Section 147 r/w. Section 144 B of the Income Tax Act, 1961 for the Assessment Year 2014-2015 by the 1^st respondent.

2. The impugned Assessment Order is preceded by a Notice dated

30.06.2021 issued under Section 148 of the Act. In the background of the Judgment of the Hon’ble Supreme Court in Union of India v. Ashish Agarwal in Civil Appeal No.3005 of 2022, dated 04.05.2022, a Notice dated 26.05.2022 was issued under Section 148A(b) of the Act, which ultimately culminated in an Order dated 26.07.2022 under Section 148A(d) and a Section 148 Notice dated 26.07.2022 under the new regime as in force w.e.f., 01.04.2021.

3. Thus, the said Section 148 Notice dated 30.06.2021 was not proceeded. Instead, a fresh Notice dated 26.05.2022 came to be issued under the new regime as in force w.e.f. 01.04.2021 under Section 148A(b) of the Act.

4. The limitation period prescribed for completing the assessment pursuant to the Notice dated 26.07.2022 under Section 148 of the Act, is covered by Section 153 (2) of the Act. Section 153(2) of the Act reads as under:-

“Section 153: Time limit for completion of assessment, reassessment and recomputation:-

(1) ...........

(2) No order of assessment, reassessment or recomputation shall be made under Section 147 after the expiry of nine months from the end of the financial year in which the notice under Section 148 was served:

Provided that where the notice under Section 148 is served on or after the 1^st day of April, 2019, the provisions of this sub-section shall have effect, as if for the words “nine months”, the words “twelve months” had been substituted.”

5. Thus, the respondents had one year from the end of the Financial Year in which Notice under Section 148 dated 26.07.2022 was issued. The end of the Financial Year in which Notice under Section 148 dated 26.07.2022 was issued is 31.03.2023. Thus the limitation prescribed for completion of the assessment proceeding expired only on 31.03.2024. The impugned assessment order has been passed on 18.05.2023 long before the expiry of the limitation period prescribed.

6. The facts on record further reveal that the petitioner has sent two representations on 08.04.2023 and 04.05.2023 seeking time to furnish certain records. Initially, time was sought for till 03.05.2023 was granted vide communication dated 08.04.2023. Thereafter, on 04.05.2023, the petitioner stated that he is a labour contractor providing daily wage to the labour for construction activities and therefore considering the nature of work the data required to be submitted for the Assessment Year 2014-2015, sought time till

18.05.2023.

7. On the other hand, the respondents vide communication dated

05.05.2023 stated as under:-

“In connection with the assessment proceedings for A.Y.2014-15, a show cause notice of the Income-tax Act, 1961 dated 02/05/2023 was issued to you as per which the details called for were required to be submitted by 05/05/2023.

In response to the above show cause notice you have filed a reply dated 04/05/2023 seeking further time for filing / submitting the details called for. Conside