Case Law Details
Filatex India Ltd Vs DCIT (Delhi High Court)
The Delhi High Court issues a significant stay on an alleged time-barred Section 148 Income Tax notice concerning Assessment Year (AY) 2012-13. The petitioner, Filatex India Ltd, contends that the notice issued on 13.03.2023 is beyond the permissible time limits. Mr. Ajay Vohra, learned senior counsel representing the petitioner, bases the argument on specific computations and legal provisions, citing a relevant judgment from the Madras High Court.
Detailed Analysis: The scrutiny assessment order for AY 2012-13 was passed on 16.03.2015, while a search action under Section 132 of the Income Tax Act occurred on 01.09.2021. The subsequent notice under Section 148 prompted the petitioner to claim that it falls outside the statutory limitations.
Mr. Vohra draws attention to a tabular chart reflecting the computation of the limitation period for different assessment years, emphasizing the relevance of the first proviso to Section 149(1) of the Act, along with Section 153A(1)(b) and its Explanation 1. The argument finds support in the Madras High Court’s judgment dated 24.03.2021 and is concurrently under consideration in another case before the Delhi High Court (W.P.(C) 5643/2023).
The court acknowledges the complexity of the legal aspects involved and issues notice to both parties. Mr. Kunal Sharma, learned senior standing counsel for the respondent/revenue, accepts the notice. The court directs the filing of counter-affidavit and rejoinder within specified timelines.
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