Sanjay Singhal Vs ACIT (Delhi High Court)
Delhi High Court held that reopening of assessment under section 148 of the Income Tax Act beyond the period as stipulated under section 149(1) of the Income Tax Act is not permissible. Accordingly, notice issued beyond time limit set aside.
Facts- Search and seizure operations were conducted by the Investigation Wing of the Income Tax Department on 07.04.2017, in Sharp Group of cases. The premises of the Assessee was also searched, and pursuant to the said operations, a notice u/s. 153A of the Act was issued to the Assessee on 09.07.2019. The assessment proceedings u/s. 153A r.w.s 143(3) of the Act, were completed determining the Assessee’s income at ₹11,43,11,530/-. The enhancement in the declared income was on account of an addition of ₹11,35,85,032/- made u/s. 69A of the Act.
CIT(A) deleted the addition. Appeal of the revenue against ITAT and Court was also dismissed. Thereafter, AO issued a notice dated 31.08.2024 u/s. 148A(b) of the Act, which was followed by the impugned order u/s. 148(3) of the Act. The AO issued notice u/s. 148 of the Act for reinitiating the proceedings for reassessing the Assessee’s income for AY 2015-16 u/s. 147 of the Act.
