Shivam Reddy Gujjala Vs ITO (Telangana High Court)
The Telangana High Court has once again reiterated that reassessment notices issued beyond the statutory limitation period under the Income Tax Act, 1961 are unsustainable in law. In this important judgment, the Court quashed the notice issued under Section 148 as well as the consequential assessment proceedings for Assessment Year 2015-16.
Introduction
The reassessment provisions under Sections 147 and 148 of the Income Tax Act have witnessed substantial litigation after the amendments introduced with effect from 01.04.2021. One of the recurring issues before Courts has been whether reassessment notices issued for old assessment years beyond the prescribed limitation period are valid.
In the present case, the Telangana High Court dealt with a reassessment notice issued for AY 2015-16 after expiry of six years and held the same to be barred by limitation.
Case Background
The petitioner, Mr. Shivam Reddy Gujjala, challenged the notice dated 23.04.2022 issued under Section 148 of the Income Tax Act, 1961.
The dispute related to:
- Assessment Year: 2015-16
- Reassessment notice issued on: 23.04.2022
The petitioner argued that:
- the reassessment proceedings were initiated beyond the permissible limitation period,
- the notice was contrary to the amended provisions of the Income Tax Act effective from 01.04.2021, and
- therefore the entire reassessment proceedings were invalid.
Key Legal Issue
