BKR Capital Pvt. Ltd. Vs ITO (Delhi High Court)
The Delhi High Court considered writ petitions challenging notices issued under Section 148 of the Income Tax Act, 1961 for Assessment Year 2017-18 on the ground that they were issued beyond the prescribed limitation period. The petitioner contended that the reassessment notice dated 15.04.2024 was without jurisdiction because the limitation period under the then prevailing provisions of Section 149 had expired on 31.03.2024. The petitioner argued that once the six-year limitation period ended, the Assessing Officer no longer had authority to issue a notice under Section 148.
The facts showed that the petitioner had filed its return of income for AY 2017-18 on 29.10.2017. The Assessing Officer issued a notice under Section 148A(b) on 21.03.2024, requiring a response by 28.03.2024. Instead of filing a reply within the original period, the petitioner sought adjournments on 28.03.2024 and again on 08.04.2024. The petitioner ultimately filed its response on 13.04.2024. Thereafter, on 15.04.2024, the Assessing Officer passed an order under Section 148A(d) rejecting the petitioner’s objections and simultaneously issued a notice under Section 148.
The Revenue argued that the reassessment proceedings had been initiated within the limitation period through the issuance of the Section 148A(b) notice on 21.03.2024. It contended that the period consumed due to the adjournments sought by the petitioner had to be excluded while computing limitation under the Fifth Proviso to Section 149(1). According to the Revenue, the limitation provisions had to be read harmoniously and the statutory exclusion mechanism could not be ignored.
