M/S KAMLA CONSTRUCTION COMPANY BIKANER vs. INCOME TAX OFFICER BIKANER

The petitioner herein has called in question the notice issued under Section 148 of Income Tax Act, 1961 as the same has been issued in violation of Section 149 of the Act of 1961 as it was barred by limitation.

Mr. Kothari, learned counsel for the petitioner submits that the time limit for issuing notice as per Section 149 of the Act of 1961 for the relevant assessment year i.e. 1994-95 is four years. If the period of four years has elapsed from the end of the relevant assessment year, and unless the case of the assessee falls under clause (b) of Section 149 of the Act of 1961, then only the notice for re-assessment can be issued against the assessee, (Uploaded on 17/09/2026 at 01:57:08 PM) (Downloaded on 28/10/2026 at 12:44:45 AM)

Learned counsel for the respondent would support the impugned order.

We have considered the submissions made at the Bar and have gone through the relevant record of the case.

Admittedly, the notice issued under Section 148 of the Income Tax Act for re-assessment is barred by limitation as the time limit prescribed under Section 149 of the Act of 1961 is four years. For ready reference Section 149 of the Act of 1961 is reproduced as under:- “(1) No notice under Section 148 shall be issued for the relevant assessment year. (a) if four years have elapsed from the end of the relevant assessment year, unless the case falls under clause (b) (b) if four years, but no more than six years, have elapsed from the end of the relevant assessment year unless the income chargeable to tax which has escaped assessment amounts to or is likely to amount to one lakh rupees or more for that year. Explanation – In determining income chargeable to tax which has escaped assessment for the purposes of this sub-section, the provisions of explanation 2 of Section 147 shall apply as they apply for the purposes of that section. (2) The provisions of sub-section (1) as to the issue of notice shall be subject to the provisions of section (5). (3) If the person on whom a notice under Section 148 is to be served is a person treated as the agent of a non- resident under Section 163 and the assessment, reassessment or recomputation to be made in pursuance (Uploaded on 17/09/2026 at 01:57:08 PM) (Downloaded on 28/10/2026 at 12:44:45 AM)

A bare perusal of Section 149 of the Act of 1961 clearly depicts that no notice under Section 148 of the Act of 1961 can be issued for the relevant assessment year, if the period of four years has elapsed from the end of the relevant assessment year unless the case falls under clause (b) of Section 149 of the Act of 1961. It is the case of the petitioner that his case does not fall within the ambit of clause (b) and, as such, after expiry of period of four years from the assessment year 1994-95, the notice issued to the petitioner is barred by period of limitation as provided under Section 149 of the Act of 1961. 7. In that view of the matter, the impugned notice dated 12.03.2001 is hereby quashed as set aside and the interim order dated 08.05.2001 passed by this Court is made absolute.

The writ petition is allowed to the extent indicated hereinabove. (VINIT KUMAR MATHUR),J (SANJAY K. AGRAWAL),CJ 106/Payal Rani/Sanjay Solanki Powered by TCPDF (www.tcpdf.org) (Uploaded on 17/09/2026 at 01:57:08 PM) (Downloaded on 28/10/2026 at 12:44:45 AM)