9911796707
TMI Blog2025 (5) TMI 36X X X X Extracts X X X X X X X X Extracts X X X X ..... the notice dated 29.11.2024 issued under Section 143 (2) of the Act and notice dated 04.12.2024 issued under Section 142 (1) of the Act and the proceedings initiated pursuant thereto; C. Issue a writ of and/or order and/or direction in the nature of Prohibition commanding Respondents to forebear from giving effect to and/or taking any step whatsoever pursuant to and/or in furtherance of the said purported notice under Section 148 of the Act and notice dated 29.11.2024 issued under Section 143 (2) of the Actand notice dated 04.12.2024 issued under Section 142 (1) of the Act and/or in any proceedings initiated thereunder for the AY 2014-15, and grant stay on the reassessment proceedings; D. Issue any other Writ, order or Direction which this Hon'ble Court may deem fit and proper in the facts and circumstances of the case. E. To dispense with from filing certified copies of Annexures." 2. The petitioner is a private company incorporated under the laws of India and is engaged in the business of manufacturing/extraction/trading/refining/ processing and packaging of edible oils and other agro-based products. 3. The petitioner filed its return of income under Section 139 (1) of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 10.06.2022 objecting to the reasons for reopening his assessment. The petitioner disputed that there were any such transactions as suggested in the notice issued on 26.05.2022 and claimed that the only transaction entered into with one of the specified entities was of a value of Rs. 4,50,000/-. 9. Thereafter, on 23.07.2022, the AO passed an order under Section 148A (d) of the Act holding that it was a fit case for issuance of the notice under Section 148 of the Act for AY 2014-15. The said order was communicated to the Assessee along with a notice dated 23.07.2022 issued under Section 148 of the Act. 10. The petitioner challenged the said notice dated 23.07.2022 by filing a writ petition before this court [being W.P.(C) 16718/2022], inter alia, on the ground that the same had been passed without considering the petitioner's response to the information as furnished by the AO. The said petition was allowed by this court by an order dated 06.12.2022 inasmuch as the order dated 23.07.2022 passed under Section 148A (d) of the Act was set aside and the matter was remanded to the AO for a de novo hearing. 11. Pursuant to the directions issued by this court, the AO afforded the peti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore 17.06.2022. However, the AO had issued a notice under Section 148 of the Act on 23.07.2022. 16. Concededly, the question whether the said notice was issued within the period of limitation is covered by the decision of this court in Ram Balram Buildhome Pvt. Ltd v. Income Tax Officer & Anr.: 2025: DHC:547-DB. 17. Notwithstanding that the said notice had been issued beyond the period of limitation, the learned counsel appearing for the Revenue contends that the period of limitation as prescribed under Section 149 of the Act would not be applicable by virtue of Section 150 of the Act as the subsequent order under Section 148A (d) of the Act, which was issued on 31.03.2024 and the notice dated 01.04.2024 issued under Section 148 of the Act was issued pursuant to the order dated 06.12.2022 passed by this court in W.P.(C) 16718/2022 (ADM Agro Industries India Private Limited v. Deputy Commissioner of Income Tax, Circle 1(1) Delhi: 2022/DHC/005868). 18. It is relevant to refer to Section 150 of the Act, which reads as under: "150. Provision for cases where assessment is in pursuance of an order on appeal, etc.-(1) Notwithstanding anything contained in section 149, the notice unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ception to Sub-section (1) of Section 150 of the Act and posits that Sub-section (1) of Section 150 of the Act would not be applicable where by virtue of any other provision limiting the time within which action for assessment, reassessment or re-computation may be taken and such assessment, reassessment or re-computation is beyond the period of limitation on the date on which the order which is subject matter of appeal, reference or revision is passed. 21. We consider it apposite to refer to the following observations of the Punjab and Haryana High Court in Praveen Kumari v. CIT: (1999) 237 ITR 339: "20. Sub-section (2) of section 150 lays down an exception and, where such an exception exists, the provisions of sub-section (1) would not be applicable. Sub-section (1) of section 150 shall not apply where the notice for reassessment for an assessment year had become barred by limitation at the time when the order, which was the subject-matter of appeal, revision or reference, was passed. Generally, the time limits prescribed in section 149 shall not apply where reassessment proceedings are initiated by a notice to give effect to any finding or direction, under sub-section (1) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urt, in a proceeding under any other law may be passed beyond the period contemplated under section 149. It is for this reason, the Legislature has not placed any time limit for making the assessment or reassessment in such circumstances and for this reason, section 150 begins with the non obstante clause. At the same time, it does not mean that the power under section 150 (1) is uncanalised or unrestricted. The safeguard has been built under sub-section (2) of section 150. The entire object of section 150(2) is to bar the proceedings under sub-section (1) in the matter of assessment/reassessment or recomputation, which has become the subject-matter of the reference or revision by reasons of any other provisions limiting the time limit. Section 150 (1) provides that the power to issue notice under section 148 in consequence of or giving effect to any finding or direction of the appellate/revisional authority or the court, is subject to the provision contained in section 150(2), which provides that directions under section 150 (1) cannot be given by the appellate/revisional authority or the court if on the date on which the order impugned in the appeal/revision was passed, the rea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e contention that the AO is now absolved of the timelines is unmerited. Clearly, the AO was required to pass an order in accordance with law. And, as noted above, the time period for passing such order had already elapsed on the date the impugned notice was issued. The import of the order is not to obliterate the timelines stipulated for issuing the notice under Section 148 of the Act. On the contrary, it was incumbent on the AO to examine whether it was a fit case for issuance of a notice under Section 148 of the Act, which would not be the case if issuance of such a notice was barred by limitation.
27. In the present case, the matter had been remanded to the AO to merely consider afresh in the light of the challenge raised by the petitioner. The import of the said order dated 06.12.2022 was not to foreclose any right or contention of the parties.
28. In view of the above, the order dated 31.03.2024 issued under Section 148A (d) of the Act, and the notice dated 01.04.2024 issued under Section 148 of the Act are set aside. Any further proceedings or orders passed pursuant to the said notice are also set aside.
29. This petition is allowed in the aforesaid terms. X X X X Extracts X X X X X X X X Extracts X X X X
|
