Sudheer Parimala Vs ITO (ITAT Hyderabad)
In the case of Sudheer Parimala Vs ITO, the assessee challenged the reassessment order for Assessment Year 2015-16 in which cash deposits of Rs.55,04,242 were treated as unexplained money under Section 69A of the Income-tax Act. The assessee contended that the deposits represented genuine business receipts and also raised additional legal grounds challenging the validity of reassessment proceedings initiated under Sections 147 and 148.
The assessee argued that the notice issued under Section 148 dated 15.04.2022 was barred by limitation because, under the unamended provisions of Section 149, reassessment for AY 2015-16 could only be initiated within six years from the end of the relevant assessment year, which expired on 31.03.2022. The assessee relied on the Telangana High Court judgment in Cyberabad Citizens Health Services Private Limited vs. DCIT and other Tribunal decisions.
The Revenue argued that after the amendments effective from 01.04.2021, the limitation period extended up to ten years where escaped income exceeded Rs.50 lakhs. It was submitted that since the escaped income in the present case exceeded Rs.50 lakhs, the reassessment notice was valid under the amended provisions of Section 149.
The Tribunal first admitted the additional grounds raised by the assessee, holding that the issue was purely legal in nature and could be decided on the basis of material already available on record. Reliance was placed on the Supreme Court judgment in NTPC vs. CIT.
