Case Law Details
CIT – International Taxation Vs Qualcomm Incorporated Vs (Delhi High Court)
Once a Responsible Officer of Department Becomes Aware of Order, the Period of Limitation Would Commence from that Point in Time: Delhi HC
In a recent judgment, the Delhi High Court (HC) tackled an important aspect of taxation law regarding the commencement of the period of limitation for assessment orders. The case of CIT – International Taxation vs. Qualcomm Incorporated brought to light the interpretation of Section 153(2A) of the Income Tax Act, 1961, concerning the time frame within which fresh assessment orders can be made.
The crux of the matter revolved around whether the term “received” in Section 153(2A) should be construed to mean actual receipt of the order by the concerned authority or the mere knowledge of the order. The HC, in its judgment, shed light on this issue, drawing upon previous precedents and legal principles.
The case stemmed from an appeal by the Commissioner of Income Tax against the order of the Income Tax Appellate Tribunal (ITAT) dated 24 November 2021 for Assessment Year 2006-07 and AY 2005-06. The ITAT had held that draft and final assessment orders by the Assessing Officer were barred by limitation under Section 153(2A) of the Income Tax Act.
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