Afreed Mohammad Vs ACIT (ITAT Hyderabad)
Hyderabad ITAT Quashes AY 2015-16 Reopening – Notice u/s 148 Issued After 6 Years Held Time-Barred Despite ₹50 Lakh Escape Claim
The Hyderabad ITAT quashed the reassessment proceedings for AY 2015-16 holding that the notice issued u/s 148 on 06.04.2022 was barred by limitation, since it was issued beyond six years from the end of the relevant assessment year. The Tribunal held that for assessment years beginning on or before 01.04.2021, the protection under the first proviso to section 149 applies and the amended 10-year reopening window cannot revive dead cases.
The Revenue argued that escaped income exceeded ₹50 lakh and was represented in the form of an “asset”, thereby attracting the amended 10-year limitation under section 149(1)(b). However, the Tribunal rejected this contention by relying on the Telangana High Court ruling in Cyberabad Citizens Health Services Pvt. Ltd. and the Supreme Court decision in Rajeev Bansal, reiterating that if reopening was already barred under the old six-year regime, the new provisions cannot retrospectively extend limitation.
The ITAT further clarified t hat issuance of notice u/s 148A(b) within limitation does not save a belated notice u/s 148. The statutory timelines under section 149 must independently be satisfied. Since the notice u/s 148 itself was issued after expiry of six years, the entire reassessment was declared invalid and quashed.
FULL TEXT OF THE ORDER OF ITAT HYDERABAD
