AMOL RAMRAO DAHALE vs. THE PRINCIPAL CHIEF COMMISSIONER INCOME TAX - 1 AND ANOTHER

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WP/10059/2022HC BombayHCBM03033757202201 March 2024Author: HON'BLE SHRI JUSTICE RAVINDRA V. GHUGE,HON'BLE SHRI JUSTICE R. M. JOSHI3 pages
AI SummaryAllowed

What did the High Court hold?

The High Court allowed the Writ Petition in terms of prayer clause 'C'. The Court found that the issue raised by the petitioner was no longer res integra. The revenue was unable to demonstrate from the record that the impugned notice was issued within the three-year period or that the amount of escaped assessment exceeded Rs. 50,00,000/-. Consequently, the Court held that the reassessment proceedings initiated were time-barred under Section 149(1)(b) of the Income Tax Act, 1961. The ratio decidendi is that reassessment proceedings initiated beyond three years for an escaped income less than Rs. 50,00,000/- are invalid. The operative direction was to quash and set aside the impugned notice and order.

What were the facts?

The petitioner, Amol Ramrao Dahale, filed a writ petition before the Bombay High Court at Aurangabad challenging a notice dated 30.05.2022 under Section 148-A(b) of the Income Tax Act, 1961, an order dated 29.07.2022 under Section 148A(d), and a consequential notice dated 29.07.2022 under Section 148 of the Act. These actions were taken for the assessment year 2017-2018. The petitioner argued that the reassessment proceedings were time-barred. The core of the dispute revolved around the issuance of a notice for escaped assessment of an amount less than Rs. 50,00,000/- beyond three years from the assessment year.

What were the issues?

1. Whether the notice dated 30.05.2022 under Section 148-A(b) and the order dated 29.07.2022 under Section 148A(d), along with the consequential notice dated 29.07.2022 under Section 148 of the Income Tax Act, 1961, for assessment year 2017-2018, are liable to be quashed and set aside? (Question of law and fact, concerning Sections 148, 148-A, and 149(1)(b)). Assessee's contention: The notice under Section 148 cannot be issued beyond three years from the assessment year if the escaped income is less than Rs. 50,00,000/-, as stipulated by Section 149(1)(b) of the Income Tax Act, 1961. Therefore, the initiation of reassessment proceedings for AY 2017-18 is without jurisdiction and time-barred. Revenue's contention: The revenue, through learned Advocate Shri Sharma, was unable to indicate from the record that the impugned notice was issued within three years and that the amount of escaped assessment was more than Rs. 50,00,000/-.

Which sections of the Income-tax Act were involved?

Section 148,Section 148-A,Section 149(1)(b)

AI-generated summary — verify with the full judgment below

*1* 906y 10059o22 IN THE HIGH COURT OF JUDICATURE AT BOMBAY BENCH AT AURANGABAD WRIT PETITION NO.10059 OF 2022 AMOL RAMRAO DAHALE VERSUS THE PRINCIPAL CHIEF COMMISSIONER, INCOME TAX AND ANOTHER. … Shri Raviraj R. Chandak, Advocate for the Petitioner. Shri Alok Sharma, Advocate for the Respondents/ IT Department. ...

CORAM : RAVINDRA V. GHUGE &

R.M. JOSHI, JJ. DATE :- 01st March, 2024 Per Court :-

1.

The Petitioner has put forth prayer clauses C and D as under:- “C) By issuing appropriate writ or direction like in nature the impugned notice dated 30.05.2022 u/ Section 148-A(b) of Income Tax Act and order dated 29.07.2022 passed u/Section 148A(d) of Income Tax Act and consequential notice dated 29.07.2022 issued u/sec. 148 of the Income Tax Act, for the assessment year 2017-2018 may kindly quash and set aside. D) To hold and declare that show cause notice dated 30.05.2022 U/Section 148-A(b) and impugned notice dated 29.07.2022 issued U/Section 148 of Income Tax Act is time 2024:BHC-AUG:4840-DB

*2* 906y 10059o22 barred in view of Section 149 (1)(b) of Income Tax Act, 1961 and therefore, initiation of reopening proceeding for the assessment year 2017-18 is without jurisdiction.”

2.

The only issue raised in this Petition is as regards the escaped assessment of an amount, which is less than Rs.50,00,000/- (Fifty Lakh). As regards the issuance of a notice for reassessment or re-computation under Section 147 of the Income Tax Act, 1961, the notice was issued under Section 148 of the Income Tax Act, 1961. 3. The Petitioner had filed the income tax returns for the Assessment Year 2017-2018. Hence, the grievance of the Petitioner is that the notice under Section 148 cannot be issued in the light of Section 149(1)(b) of the Income Tax Act, 1961, with reference to the escaped assessment, if the notice is issued beyond three years of the Assessment Year and if the amount is less than Rs.50,00,000/- (Fifty Lakhs). A notice in peculiar circumstances could be issued even within ten years, provided the escaped income has to be more than Rs.50,00,000/- (Fifty Lakhs).

4.

This issue is no longer res-integra and as the Department, despite the vehement submissions of the learned

*3* 906y 10059o22 Advocate Shri Sharma, is unable to indicate from the record that the impugned notice was issued within three years and that the amount of escaped assessment was more than Rs.50,00,000/-.

5.

The Writ Petition is allowed in terms of prayer Clause ‘C’. kps ( R.M. JOSHI, J. ) ( RAVINDRA V. GHUGE, J. )

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