UCB Developers LLP Vs ACIT (Delhi High Court)
The Delhi High Court considered a writ petition challenging notices dated 12.08.2024, 31.08.2024 and 17.06.2025 issued under Section 148 of the Income Tax Act, 1961 for Assessment Year (AY) 2015-16. The petitioner contended that the reassessment proceedings were barred by limitation under the second proviso to Section 149(1), as the notice was issued beyond the permissible ten-year period. Reliance was placed on earlier Division Bench decisions of the Court where similar notices for AY 2015-16 were held time-barred. The Revenue attempted to distinguish those decisions but was unable to do so.
The Court examined the statutory scheme and noted that the notice under Section 148A(b) was issued on 12.08.2024, followed by an order under Section 148A(d) on 31.08.2024. Since the assessment year relevant to the notice date was AY 2025-26, counting ten years backwards would reach only up to AY 2016-17. Consequently, issuance of notice for AY 2015-16 exceeded the limitation period prescribed by law. Finding the facts identical to the earlier rulings, the Court held the impugned notice to be clearly barred by limitation. Accordingly, the writ petition was allowed and the notice dated 31.08.2024 along with all consequential proceedings were quashed.
