Independent And Public Spirited Media Foundation Vs ACIT (Karnataka High Court)
Karnataka High Court held that issuance of reassessment notice under section 148 of the Income Tax Act after expiry of statutory period of limitation as prescribed under section 149 of the Income Tax Act is liable to be quashed. Accordingly, petition allowed.
Facts- On 09.10.2017, the petitioner – Trust furnishes various documents in the course of a scrutiny assessment proceeding including the financial statements showing the application expenditure inter alia. Later, on 08.11.2017, return of income was filed for the assessment year 2016-17 claiming its income to be exempt from Sections 11 and 12. An assessment order comes to be passed on 02.12.2018 u/s. 148A(d) of the Income Tax Act, 1961, recording the details submitted and verified by the assessing officer accepting the returned income.
After about 5 years, a notice emerges on 29.03.2023 from the hands of the respondent, invoking Section 148A(d) of the Act alleging inter alia that the trust had incurred legal and professional fees close to Rs.69,47,060/- without receiving any services in return. The petitioner appeared and furnished all the documents, personal hearing was also afforded but the proceedings continued. It is then the petitioner is before this court on the score that the notice issued u/s. 148A(d) is on the face of it without jurisdiction as it is beyond limitation prescribed under law.
