Case Law Details
ITO Vs Indian Oil Corporation Ltd (Patna High Court)
Introduction: The Patna High Court recently dismissed an appeal filed by the Income Tax Department against Indian Oil Corporation Ltd (IOCL). The appeal pertained to the limitation period for an order under Section 201 of the Income Tax Act. The court examined whether a reasonable time limit should apply in the absence of a specific statutory limitation.
Analysis: The court found that the assessment orders under Section 201(1) and 201(1A) of the Income Tax Act were passed on 27th April 2007, for the assessment years 2002-03 and 2003-04. However, there was no specific limitation period provided in the statute for such orders.
The court referred to various High Court judgments, including those from Delhi, Himachal Pradesh, Bombay, Telangana, Andhra Pradesh, Karnataka, and Gujarat. These judgments deemed four years as a reasonable time period for passing orders under Section 201 when no statutory limitation was prescribed. The court also noted that the Union Parliament later amended the provision to provide a specific limitation period of four, six, and seven years.
Furthermore, the court held that if the Revenue had not challenged a declaration of law laid down by a High Court and accepted it in the case of one assessee, they cannot challenge its correctness in the case of other assessees without just cause.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
