Cyberabad Citizens Health Services Private Limited Vs DCIT (Telangana High Court)
Reopening Under Section 148 Dated 22.04.2024 Held Invalid and Time-Barred Under the First Proviso to Section 149 for AY 2017-18
The Telangana High Court held that the Section 148 notice dated 22.04.2024 for AY 2017-18 was time-barred, since the six-year limitation under old Section 149(1)(b) expired on 31.03.2024, and the first proviso to amended Section 149 prohibits reopening beyond that date. The Court rejected the Revenue’s reliance on the fifth and sixth provisos, holding that they cannot override the mandatory restriction imposed by the first proviso. Further, the Court found the reopening impermissible because the very same issues—short addition of ₹39.60 crore, EPF/ESI disallowance, and depreciation verification—were already pending in Section 154 proceedings, making the initiation of 148/148A proceedings a case of parallel proceedings and change of opinion, contrary to the Supreme Court’s ruling in S.M. Overseas Pvt. Ltd.. Accordingly, both the 148A(d) order and 148 notice were quashed as invalid, time-barred, and without jurisdiction.
FULL TEXT OF THE JUDGMENT/ORDER OF TELANGANA HIGH COURT
Heard Mr. T. Suryanarayana, learned Senior Counsel representing Ms. K. Srilatha, learned counsel for petitioner and Ms. Bokaro Sapna Reddy, learned Senior Standing Counsel for Income Tax Department appearing for respondents.
