Salil Gulati Vs ACIT (Delhi High Court)
In the case of Salil Gulati Vs ACIT, the petitioner challenged the order passed under Section 148A(d) of the Income Tax Act, 1961 and the notice issued under Section 148 dated 30 July 2022 for Assessment Year 2013-14. The petitioner also challenged the constitutional validity of CBDT Instruction No.1/2022 dated 11 May 2022, particularly the portion dealing with operation of amended Section 149 and reopening of past assessment years.
The petitioner argued that the impugned notice was barred by limitation. It was contended that under amended Section 149(1)(a) and (b), reassessment notices could be issued within three years, and up to ten years only where escaped income exceeded Rs.50 lakh. However, reliance was placed on the first proviso to Section 149, which states that no notice can be issued for an assessment year beginning on or before 1 April 2021 if such notice could not have been issued under the old limitation regime. According to the petitioner, under the unamended Section 149(1)(b), reassessment for AY 2013-14 became time-barred on 31 March 2020, and therefore reopening after that date was impermissible. The petitioner also submitted that three High Courts had stayed similar reassessment notices on limitation grounds.
