Tarish Investment And Trading Company Pvt. Ltd Vs Union of India (Karnataka High Court)
The Karnataka High Court in Tarish Investment and Trading Company Pvt. Ltd. vs Union of India examined the legality of a reassessment notice issued under Section 148 of the Income Tax Act, 1961 for the Assessment Year (AY) 2017–18. The petitioner challenged both the order issued under Section 148A(d) and the consequential notice under Section 148 as being time-barred under the statutory limitation period prescribed in Section 149 of the Act.
The notice in question, issued on 7 May 2024, proposed to reassess the petitioner’s income for AY 2017–18 based on information suggesting income had escaped assessment. The notice required the petitioner to file a return within three months from the end of the month of issue. The petitioner argued that the notice was issued beyond the permissible period of limitation, as the limitation period for reopening assessments under the old regime was six years from the end of the relevant financial year. Since the financial year for AY 2017–18 ended on 31 March 2018, the six-year limitation period expired on 31 March 2024. Therefore, the reassessment notice issued on 7 May 2024 was claimed to be barred by limitation.
