Kandasamy Veluswamy Vs ACIT (Madras High Court)
Madras High Court held that reassessment notice under section 148 of the Income Tax Act for Assessment Year 2014-2015 issued on 29.07.2022 issued under new regime is held to be in time. Accordingly, writ petition stands dismissed.
Facts- In this Writ Petition, the Petitioner has challenged the impugned order dated 29.07.2022 passed under Section 148A(d) of the Income Tax Act, 1961 and the impugned notice dated 29.07.2022 issued under Section 148 of the Act for the Assessment Year 2014-2015 under the new regime which came into effect from 01.04.2021. Notably, the impugned order dated 29.07.2022 has been passed in the background of a Notice dated 02.06.2022 issued under Section 148A(b) of the Act, in the light of the decision of the Hon’ble Supreme Court in Union of India Vs. Ashish Agarwal, (2023) 1 SCC 617.
Conclusion- Held that since Notice issued under Section 148 of the old regime on 30.06.2021 was issued within the limitation of six years, the impugned notice issued on 29.07.2022 under Section 148 of the Act is in time. As the income that had allegedly escaped assessment was more than Rs.50,00,000/-, the Assessing Officers has time upto 30.06.2025 to issue a Notice under Section 148 of the Act under the new regime with effect from 01.04.2021. Therefore, impugned Notice dated 29.07.2022 issued under the new regime under Section 148 of the Act has to be held to be in time. The impugned Notice dated 29.07.2022 was also preceded with an approval from the specified authority under Section 151 of the Income Tax Act, 1961 viz., the Principal Chief Commissioner of Income Tax vide CHE/COORD/148A/2022-23/341 dated 27.07.2022 as under amended Section 151 of the Act with effect from 01.04.2021, the challenge to the impugned order has to fail. Therefore, this Writ Petition is liable to be dismissed. However, all legal issues are left open to be canvassed during the course of reassessment proceedings.
