Hitesh Ramniklal Shah Vs ACIT (Bombay High Court)
Bombay High Court held that reopening of assessment by issuance of notice under section 148 of the Income Tax Act issued much after the surviving period is barred by limitation. Accordingly, notices are set aside and petition is allowed.
Facts- By this Petition, the Petitioner challenges a notice dated 27 July 2022 issued under Section 148 of the Income-tax Act, 1961, the subsequent notices dated 9 October 2025 and 14 October 2025 issued under Section 142(1) of the Act, and the show cause notice dated 18 October 2025 issued by Respondent No.1, inter alia on the ground that the notice under Section 148 of the Act is issued beyond the period of limitation, and therefore, all subsequent notices will also be bad in law.
Conclusion- Held that a notice under Section 148 of the Act cannot be issued if the period of six years from the end of the relevant assessment year has expired at the time of issuance of the notice relying on the first proviso to Section 149 of the Act. Hence, the submission of the Respondent that a period of ten years is available to issue the notice under Section 148 of the Act is misconceived.
