Baba Global Ltd Vs ACIT (Delhi High Court)
Delhi High Court held that notice issued under section 148A(d) of the Income Tax Act beyond time limit prescribed under section 149(1)(a) is time-barred and accordingly, the notice and order thereon are set aside.
Facts- The petitioner [Assessee] has filed the present petition. It is the petitioner’s case that the notice dated 27.04.2023 issued u/s. 148 of the Act [impugned notice] for Assessment Year [AY] 2019-20 is invalid as it was issued beyond the period of limitation. The last date for issuance of the notice was 31.03.2023. After accounting for the exclusion/extensions in terms of provisos to Section 149 of the Act, the period to issue such a notice expired on 27.04.2023 and the impugned notice was sent on 28.04.2023.
It is also the petitioner’s case that the impugned notice is invalid as AO had decided that it was not a fit case for issuance of such a notice and had, on 27.04.2023, passed an order u/s. 148A(d) of the Act dropping the said proceedings. However, the AO had further reviewed the said order – as it appears at the instance of the ‘specified authority’ – and had thereafter, issued another order dated 27.04.2023 u/s. 148A(b) of the Act, which was received on 28.04.2023 at 12:31 AM, holding that it was a fit case for issuance of notice u/s. 148 of the Act. However, the AO does not have any power to review an order u/s. 148A(d) of the Act.
