Shailendra Nath Rai Vs ACIT (Delhi High Court)
The petitioner challenged an order dated 30.04.2024 passed under Section 148A(d) of the Income Tax Act, 1961, and the consequential notice issued under Section 148 on the same date, contending that the reassessment proceedings were barred by limitation.
The petitioner submitted that the first notice under Section 148A(b) was issued on 29.03.2024 granting time until 08.04.2024 to file a reply. According to the petitioner, the outer limitation for issuance of notice under Section 148 for Assessment Year 2017-18 was 31.03.2024 under the first proviso to Section 149. Since the initial period granted for reply extended beyond 31.03.2024 and seven clear days were not available before the expiry of limitation, it was argued that the notice under Section 148A(b), the order under Section 148A(d), and the subsequent notice under Section 148 were all time-barred. The petitioner sought to distinguish the Delhi High Court’s earlier decision in BKR Capital Private Limited v. Income Tax Officer, where a Section 148A(b) notice had been issued on 21.03.2024 and seven days were available before 31.03.2024.
The Revenue contended that the issue was governed by the fifth and sixth provisos to Section 149. It argued that the period allowed to the assessee for filing a reply, including any extended time, had to be excluded while computing limitation. Therefore, the limitation period stood extended and the proceedings were not invalid merely because the first notice was issued on 29.03.2024.
