Case Law Details
Sevensea Vincom Private Limited Vs PCIT (Jharkhand High Court)
Introduction: The recent judgment of Jharkhand High Court in the case of Sevensea Vincom Private Limited vs PCIT has significant implications for tax reassessment. The petitioner sought to quash the notice dated 21.07.2022 under Section 148 of the Income Tax Act, 1961, pertaining to the Assessment Year 2016-17. The key contentions include the limitation period, lack of authority approval, non-consideration of replies, and insufficient information provided.
Detailed Analysis:
1. Limitation Period Challenge: The petitioner argued that the notice issued on 21.07.2022 exceeds the limitation period prescribed under Section 149 of the Act. The court analyzed the period under 149(1)(a) and 149(1)(b) and concluded that the alleged income of Rs. 39,21,450/- falls short of the Rs. 50,00,000/- threshold, rendering the notice beyond the three-year limit. This formed the basis for declaring the notice as barred by limitation.
2. Approval under Section 151: The petitioner contended that the notice lacked approval under Section 151 of the Act. The court, while examining the procedures followed and relying on relevant judgments, rejected this argument, emphasizing compliance with statutory requirements.
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