Wave Silver Tower Private Limited Vs ACIT (Delhi High Court)
In Wave Silver Tower Private Limited Vs ACIT, the Delhi High Court examined the validity of a reassessment notice issued under Section 148 of the Income Tax Act, 1961 for Assessment Year 2016–17, along with related proceedings under Sections 148A(b) and 148A(d). The petitioner challenged the notice dated 30.08.2024 on the ground that it was barred by limitation.
Read SC Judment in this case: SC Dismisses Appeal Due to Delay, Upholds Time-Barred Reassessment Notice Ruling
The petitioner relied on earlier decisions of the Court as well as the Supreme Court ruling, which clarified that under the new reassessment regime, a notice cannot be issued if the time limit prescribed under the old regime has already expired. Specifically, the Supreme Court held that the extended ten-year period applies prospectively and cannot revive cases where the earlier six-year limitation had already lapsed.
In the present case, the six-year limitation period for AY 2016–17 expired on 31.03.2022. Since the impugned notice was issued after this date, it was held to be time-barred. The Revenue was unable to rebut this position.
Accordingly, the Court set aside the impugned notice and allowed the petition, holding that reassessment proceedings initiated beyond the prescribed limitation period are invalid.
