ADM Agro Industries Private Limited Vs ACIT (Delhi High Court)
Delhi High Court held that initiation of reassessment proceedings by issuance of notice under section 148 of the Income Tax Act is not sustainable in law in as much as the same is barred by limitation as stipulated u/s. 149 (1) of the Income Tax Act.
Facts- The petitioner is a private company incorporated under the laws of India and is engaged in the business of manufacturing/ extraction/trading/refining/ processing and packaging of edible oils and other agro-based products.
Post completion of scrutiny assessment, AO issue notice u/s. 148 of the Act. Although the said notice was issued after 31.03.2021, the procedure as prescribed u/s. 148A of the Act was not followed. The petitioner has challenged the said notice on several grounds. However, at this stage, the petitioner has confined the petition to initiation of reassessment proceedings as barred by limitation as stipulated under Section 149(1) of the Act.
Conclusion- Held that in the present case, notice under Section 148 of the Act which was subject matter of challenge in the writ petition was barred by limitation on the date, it was issued by virtue of Section 149(1) of the Act. Thus, any order passed in a challenge to the said notice would not have the effect of obliterating the time limits for passing such an order. Thus, the order dated 31.03.2024 issued under Section 148A(d) of the Act, and the notice dated 01.04.2024 issued under Section 148 of the Act are set aside. Any further proceedings or orders passed pursuant to the said notice are also set aside.
