State of Andhra Pradesh Vs Himani Limited and Others (Telangana High Court)
The Telangana High Court heard a batch of writ petitions challenging notices issued under Section 148 of the Income Tax Act, 1961 for reassessment proceedings. The principal issue before the Court was whether the reassessment notices were barred by limitation because, although dated 31.03.2021, they were actually issued or dispatched on or after 01.04.2021.
The petitioners argued that under the unamended provisions of the Income Tax Act, notices under Section 148 had to be issued and served on or before 31.03.2021. They contended that the respondent Department’s own records showed that the notices were dispatched after 31.03.2021, making them time-barred. According to the petitioners, once the Finance Act, 2021 came into force from 01.04.2021, the newly introduced Section 148A became applicable, and any reassessment notice issued after that date had to comply with the amended procedure.
The petitioners further submitted that the Income Tax Department was required to maintain records showing the actual date and time of dispatch and service of notices, especially because notices were sent electronically. They argued that if the Department could not produce proper records, the mere mention of the date “31.03.2021” on the notice could not be treated as conclusive proof of issuance within limitation.
