Madras HC Upholds Section 148 Reassessment Notice for AY 2013-14 as Timely

By CA Sandeep Kanoi Income Tax Judiciary August 22, 2026

TaxGuru Citation: 2026 taxguru.in 11479
Case Name: Exemplarr Worldwide Limited Vs Central Board of Direct Taxes (Madras High Court)
Appeal Number: Only available for paid members
Date of Judgement/Order: Only available for paid members
Courts: All High Courts, Madras High Court

Upgrade to Basic or Premium to download.

Already Upgraded? Log in.

Exemplarr Worldwide Limited Vs Central Board of Direct Taxes (Madras High Court)

Summary: The Madras High Court dismissed Exemplarr Worldwide Limited’s writ petition challenging the Section 148 notice dated 30.07.2022 and consequential assessment order dated 31.03.2023 for AY 2013-2014. The dispute concerned reopening of an assessment involving an inter-corporate loan of Rs.10,18,80,000/- received from M/s.Ananya Infrastructure Pvt. Ltd. The Petitioner contended that the loan had already been examined in the original assessment, that reopening was time-barred, and that approval under Section 151 ought to have been obtained from the Principal Chief Commissioner rather than the Director General. Relying on Ashish Agarwal and Rajeev Bansal, the Court held that the reassessment proceedings were within limitation after applying the permissible exclusions. The Court also held that approval by the Director General of Income Tax (Investigation) was valid under Section 151(2), since more than three years had elapsed from the end of the relevant assessment year. The writ petition was dismissed, but the Petitioner was granted liberty to file an appeal against the assessment order within 30 days. Recovery was directed to remain in abeyance for twelve weeks.