E-Homes Infrastructure Pvt. Limited Vs DCIT (Delhi High Court)
In this case before the Delhi High Court, the petitioner challenged an order dated 30.08.2024 passed under Section 148A(d) of the Income Tax Act, 1961, along with a notice issued under Section 148 for Assessment Year 2016–17.
The petitioner contended that the notice under Section 148 was issued beyond the period of limitation, as more than six years had elapsed from the end of the relevant assessment year. It was also argued that the issue was covered by a prior decision of the Court.
Also Read SC Judgment in the case: Search on Third Party Cannot Extend Reassessment Time Without Assessee Link: SC
The Revenue submitted that the limitation period should be determined with reference to Section 153C of the Act, as reassessment proceedings were initiated based on information obtained during a search conducted on 20.07.2022 in the case of certain group entities. It was stated that these entities were suspected to have taken accommodation entries from shell entities managed by entry operators, and that the petitioner had allegedly availed a loan from one such entity.
The Court examined the provisions of Section 148A as applicable at the relevant time, including the procedure for conducting inquiry, providing an opportunity of being heard, and passing an order before issuing notice under Section 148. It also considered the proviso to Section 148A, which excludes its applicability in cases involving search and seizure under Sections 132 or 132A, or where the Assessing Officer is satisfied that seized material belongs to or relates to the assessee.
