Appnell Holdings Limited Vs DCIT (Madras High Court)
Challenge to Reassessment Proceedings
The petitioner challenged CBDT instruction no. 01/2022 dated 11/05/2022the order dated 28.07.2022 under Section 148A(d) of the Income Tax Act, 1961, and the Section 148 notice dated 28.07.2022 for Assessment Year 2015-2016. The challenge primarily relied on the concession recorded from the Revenue in Union of India and others Vs. Rajeev Bansal, (2024) 469 ITR 46 / 2024 SCC Online SC 2693.
The petitioner contended that the reassessment proceedings were time barred. The Revenue relied on Section 159 and the applicable reassessment framework.
Limitation and Rajeev Bansal
The Madras High Court considered the Supreme Court’s decision in Rajeev Bansal, including its conclusion that the Income Tax Act after 01.04.2021 must be read with the substituted provisions and that TOLA continues to apply where an action or proceeding under the substituted provisions fell for completion between 20.03.2020 and 31.03.2021.
The Court noted that the Supreme Court had held that reassessment notices under the new regime must be issued within the surviving limitation period under the Income Tax Act read with TOLA, and notices issued beyond that period would be time barred.
The Court, however, held that the concession recorded in paragraph 19 of Rajeev Bansal did not apply to the present facts. It noted that the concession could not be treated as law declared under Article 141 of the Constitution and that the relevant issue had to be considered in light of the applicable limitation provisions.
Comments are closed.