SCI India Limited Vs ITO (Calcutta High Court)
Hon’ble Calcutta High Court stays Notice under Section 148 of Income Tax Act, 1961 on the grounds of limitation and as well on the ground that an order emanating from an earlier notice under section 148 is pending before the CIT (Appeals).
Issue: The petitioner challenged a notice dated April 26, 2023, issued under Section 148 of the Income Tax Act, 1961, for the assessment year 2016-17 based on two grounds: the notice was issued beyond the limitation period, and an order resulting from a previous notice under Section 148 for the same assessment year is still pending before an appellate authority, making it impermissible to have two parallel assessments for the same year.
Arguments Advanced by Petitioner
1. It was argued that notice dated 26.04.2023 issued under Section 148 is barred by limitation as per the first proviso to Section 149. It was submitted that for the assessment years up to 2021-2022 (i.e., the period before the amendment to Section 149 by the Finance Act, 2021), the limitation period of six years, as prescribed by the unamended Section 149, would apply. Only from the assessment year 2022-2023 onward does the ten-year limitation period specified in the amended Section 149 come into effect.
