Ram Balram Buildhome Pvt. Ltd. Vs ITO And Anr. (Delhi High Court)
Delhi High Court held AO is required to complete the entire procedure for issuance of notice under Section 148 of the Act within the period as prescribed u/s. 149 of the Act. Thus, if AO is unable to complete such procedure within the period of limitation, the AO would cease to have the jurisdiction to issue such a notice.
Facts- The petitioner has filed the present petition under Article 226 of the Constitution of India, inter alia, impugning (i) a notice dated 01.06.2021 issued under Section 148 of the Income Tax Act, 1961; (ii) a notice dated 30.05.2022 issued in furtherance of the notice dated 01.06.2021; (iii) an order dated 30.07.2022 passed under Section 148A(d) of the Act; (iv) a notice dated 30.07.2022 issued under Section 148 of the Act; and (v) an assessment order dated 30.05.2023 framed under Section 147 of the Act read with Section 144 and 144B of the Act. These abovementioned impugned notices and orders were issued in respect of the assessment year (AY) 2013-14.
Conclusion- The opening sentence of Section 149(1) of the Act clearly indicates that the time limit as prescribed under Section 149(1) of the Act is a hard stop. Therefore, the procedure that is required to be completed for issuance of notice under Section 148 of the Act is required to be completed prior to the expiry of the time limit as prescribed under Section 149(1) of the Act. Such time limit cannot be breached on account of the AO not completing the procedure required for issuance of notice under Section 148 of the Act. There is no ambiguity in this regard given the construct of Section 149(1) of the Act, which is not in the nature of enabling provision but a provision that proscribes an action.
