Ankit Khandelwal Vs ITO (Delhi High Court)
Delhi High Court held that reassessment notice under section 148 of the Income Tax Act issued beyond three years is barred by limitation as specified u/s. 149(1)(a) and hence not sustainable in law.
Facts- The petitioner, essentially, impugns a notice dated 22.07.2022 issued under Section 148 of the Income Tax Act, 1961 inter alia, on the ground that it has been issued beyond the period of limitation as specified under Section 149(1)(a) of the Act. Additionally, it is the petitioner’s case that there is no information that would lead to the conclusion that the petitioner’s income escaped assessment and therefore, the order dated 22.07.2022 passed under Section 148A(d) of the Act, holding that it is a fit case for issuance of notice under Section 148 of the Act is ex facie erroneous and is liable to be set aside.
Conclusion- Held that the impugned order is unsustainable on both the grounds i.e. the impugned notice is beyond the period of three years as stipulated under Section 149(1) of the Act; and, that there is no material to indicate that the Assessee’s income has escaped assessment as the petitioner has declared the amount as received, chargeable to tax and has also paid the tax on the said amount.
