Abha Saraf Vs Union of India (Patna High Court)
In the case of Abha Saraf vs Union of India, the Patna High Court dismissed the petition challenging the issuance of an income tax notice under Section 148 of the Income Tax Act, 1961. The petitioners, a married couple, argued that the notice issued on 01.04.2021 was time-barred under Section 149(1)(b), which provides a six-year limitation period from the end of the relevant assessment year. According to the petitioners, this period expired on 31.03.2020, making the notice invalid.
The Court, however, took into account the Supreme Court’s ruling in Suo Motu Writ Petition (C) No. 3 of 2020 which extended limitation periods due to the COVID-19 pandemic. This judgment suspended all limitation periods from 15.03.2020 to 28.02.2022, covering the time frame relevant to the petitioners’ case. As a result, the Court concluded that the notice issued on 01.04.2021 was within the legally saved limitation period. The Court emphasized that the benefit of the extension applied equally to taxpayers and the tax department. Finding no merit in the petitioners’ challenge, the writ petitions were dismissed.
FULL TEXT OF THE JUDGMENT/ORDER OF PATNA HIGH COURT
The petitioners, husband and wife are before us challenging the notice issued under Section 148 of the Income Tax Act,1961. The short contention raised is that it is issued beyond the limitation period as provided under the Income Tax Act, under Section 149 prior to the amendment brought in 2021. Section 149, which refers to time limit for notices, specifically by Clause (b) of sub-section (1) provides for six years from the end of the relevant assessment year, if the Assessing Officer does not have in his possession books of accounts or other documents or evidence, which revealed that income chargeable to tax represented in the form of escaped assessment amounts to or is likely to amount to Rs. 1,00,000/-(One lakh) or more. In the present case, admittedly the notice issued is under Section 149 (1) (b) and the limitation is six years from the end of the relevant Assessment Year. The petitioners’ contention is that the notice was issued only on 01.04.2021, which is the date as specified in Annexure-4 to both the writ petitions.
