Case Law Details
Filatex India Ltd Vs DCIT (Delhi High Court)
The Delhi High Court issues a significant stay on an alleged time-barred Section 148 Income Tax notice concerning Assessment Year (AY) 2012-13. The petitioner, Filatex India Ltd, contends that the notice issued on 13.03.2023 is beyond the permissible time limits. Mr. Ajay Vohra, learned senior counsel representing the petitioner, bases the argument on specific computations and legal provisions, citing a relevant judgment from the Madras High Court.
Detailed Analysis: The scrutiny assessment order for AY 2012-13 was passed on 16.03.2015, while a search action under Section 132 of the Income Tax Act occurred on 01.09.2021. The subsequent notice under Section 148 prompted the petitioner to claim that it falls outside the statutory limitations.
Mr. Vohra draws attention to a tabular chart reflecting the computation of the limitation period for different assessment years, emphasizing the relevance of the first proviso to Section 149(1) of the Act, along with Section 153A(1)(b) and its Explanation 1. The argument finds support in the Madras High Court’s judgment dated 24.03.2021 and is concurrently under consideration in another case before the Delhi High Court (W.P.(C) 5643/2023).
The court acknowledges the complexity of the legal aspects involved and issues notice to both parties. Mr. Kunal Sharma, learned senior standing counsel for the respondent/revenue, accepts the notice. The court directs the filing of counter-affidavit and rejoinder within specified timelines.
Conclusion: The Delhi High Court schedules the next hearing for 17.10.2023 and grants a stay on the operation of the impugned notice dated 13.03.2023 until further court directions. This decision holds implications for the petitioner and sets the stage for a detailed examination of the alleged time-barred nature of the Section 148 notice. As the legal proceedings unfold, stakeholders will closely monitor the developments in this case.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
1. Allowed, subject to the petitioner filing legible copies of the annexures, at least three days before the next date of hearing.
W.P.(C) 12148/2023 & CM APPL. 47752/2023 [Application filed on behalf of the petitioner seeking interim relief]
2. This writ petition concerns Assessment Year (AY) 2012-13.
3.The record shows that the scrutiny assessment order under Section 143(3) of the Income Tax Act, 1961 [in short, “Act”] was passed on 16.03.2015.
4. The record also shows that a search action under Section 132 of the Act was conducted on 01.09.2021.
5. The petitioner had been issued a notice dated 13.03.2023, under Section 148 of the Act. It is the contention of the petitioner that the notice is time-barred. In this behalf, Mr Ajay Vohra, learned senior counsel, who appears on behalf of the petitioner, has placed reliance on the following tabular chart:
|
Assessment Year(s) |
Computation of 6 years | Computation of 10 years |
| AY 2022-23 | _ | 1 |
| AY 2021-22 | 1 | 2 |
| AY 2020-21 | 2 | 3 |
| AY 2019-20 | 3 | 4 |
| AY 2018-19 | 4 | 5 |
| AY 2017-18 | 5 | 6 |
| AY 2016-17 | 6 | 7 |
| AY 2015-16 | – | 8 |
| AY 2014-15 | – | 9 |
| AY 2013-2014 | – | 10 |
| BAR OF LIMITATION | ||
| AY 2012-13 | – | – |
5.1 In this context, our attention has been drawn to the first proviso appended to the Section 149(1) of the Act, in addition to Section 153A(1)(b) and Explanation 1 appended thereto.
5.2 In support of this submission, Mr Vohra relies upon the judgment dated 24.03.2021, passed by the Madurai Bench of the Madras High Court in W.P. (MD) No. 4327/2021 and W.M.P. (MD) Nos. 3513, 3515 & 3516 of 2021, titled A.R. Safiullah vs. The Assistant Commissioner of Income Tax, Central Circle-1, Trichy.
5.3. It is also pointed out that this issue is also being considered by this Court in W.P.(C) 5643/2023, titled Alankit Insurance TPA Limited vs. Dy. Commissioner of Income Tax Circle 28, Delhi.
6. Accordingly, issue notice.
6.1. Mr Kunal Sharma, learned senior standing counsel, who appears on behalf of respondent/revenue, accepts notice.
7. Counter-affidavit will be filed within the next two weeks.
7.1. Rejoinder thereto, if any, will filed at least two days before the next date of hearing.
8. List the matter on 17.10.2023.
9. Meanwhile, there shall be a stay on the operation of the impugned notice dated 13.03.2023, till further directions of the court.
10. Parties will act based on the digitally signed copy of the order.
