ACIT Vs K.T.C. Automobiles Pvt. Ltd. (Kerala High Court)
Limitation Victory Recalled: Kerala HC Reopens Tax Dispute After TOLA & Supreme Court Extension Were Overlooked
Summary: In ACIT v. K.T.C. Automobiles Pvt. Ltd., Review Petition No. 957 of 2026 in W.P.(C) No. 7627 of 2022, decided on 19 August 2026, the Kerala High Court recalled its earlier judgment dated 7 July 2026, by which the assessee’s writ petition had been allowed on the ground of limitation u/s 153. The Court accepted that the earlier judgment required reconsideration because the effect of TOLA & the Supreme Court’s order extending limitation during the COVID-19 period had not been brought to its attention.
The review petition was therefore allowed, but the Court did not finally decide whether the assessment was within limitation. It merely recalled the earlier judgment & restored the writ petition for fresh hearing.
Relevant Facts
K.T.C. Automobiles Pvt. Ltd. had filed W.P.(C) No. 7627 of 2022 before the Kerala High Court, challenging income-tax proceedings on the ground that they were barred by the limitation prescribed u/s 153 of the Income-tax Act, 1961.
By judgment dated 7 July 2026, the High Court accepted the limitation challenge & allowed the writ petition. The tax proceedings were therefore invalidated on the reasoning that the statutory period available to the Department had expired.
