Supreme Build-Cap Pvt. Ltd Vs ACIT (Delhi High Court)
The Delhi High Court allowed the writ petition challenging the reassessment proceedings and the consequential assessment order for Assessment Year (AY) 2016-17, holding that the notice issued under Section 148 of the Income Tax Act, 1961 was barred by limitation and, therefore, without jurisdiction.
The petitioner challenged the assessment order dated 29.03.2026 on several grounds, primarily contending that the reassessment proceedings initiated through the notice dated 30.08.2024 under Section 148 were time-barred. According to the petitioner, the limitation period applicable for issuing such a notice at the relevant time was six years, making the notice invalid.
At the outset, the Revenue objected to the maintainability of the writ petition. It argued that since the petitioner had challenged an assessment order and an effective statutory appellate remedy was available, the High Court should decline to entertain the writ petition and direct the petitioner to pursue the prescribed appellate remedy.
In response, the petitioner submitted that during the reassessment proceedings, it had specifically raised the issue of limitation in its reply to the show cause notice dated 21.03.2026. However, the Assessing Officer neither considered nor decided this jurisdictional objection before passing the assessment order.
