Radha Mohan Maheshwari Vs ACIT (Rajasthan High Court)
Rajasthan High Court heard a petition by Radha Mohan Maheshwari challenging the reopening of his Assessment Year (AY) 2012-13 assessment under Section 148 of the Income Tax Act, 1961. The petitioner contended that the reassessment notice was time-barred under Section 149(1)(b) and therefore lacked jurisdiction. Referring to the Finance Act, 2021, the petitioner argued that reassessment notices for assessments before April 1, 2021, could not be issued if they were already beyond the statutory limitation period under the previous provisions of Sections 149, 153A, or 153C.
In support of his argument, the petitioner cited several judicial precedents, including the Madras High Court’s ruling in A.R. Safiullah v. ACIT (2021) and the Delhi High Court’s judgments in Filatex India Ltd. v. DCIT (2023) and Alankit Insurance TPA Ltd. v. DCIT (2023). These rulings had previously struck down time-barred reassessment notices, affirming that the Finance Act, 2021, could not retrospectively revive expired reassessment rights. The petitioner claimed that his case was similar and warranted a stay on the reassessment proceedings.
The Income Tax Department, however, defended the validity of the reassessment notice, asserting that a combined reading of Sections 148, 149(1)(b), and 153C indicated that the assessment was within the permissible timeframe. The department further argued that the notice would have been valid had it been issued before April 1, 2021, under the pre-existing provisions. Additionally, they pointed to material found during a search at another person’s premises, which allegedly revealed bogus transactions linked to the petitioner. They emphasized that the assessment was only reopened for inquiry and had not yet concluded.
