IMPRESSIVE TRADING PRIVATE LIMITED,MUMBAI vs. INCOME TAX OFFICER 10(1)(1), MUMBAI

Facts

The assessee, Impressive Trading Private Limited, filed appeals against the orders of the CIT(A) that confirmed the reopening of assessment. The reopening was based on information from the Investigation Wing alleging bogus accommodation entries. The primary contention of the assessee was that the notices issued under Section 148 of the Income Tax Act were time-barred.

Held

The Tribunal held that the notices issued under Section 148 of the Act, as well as the consequential assessment orders, were null and void. This decision was based on the Supreme Court's ruling in the case of Rajeev Bansal, which established that such notices must be issued within the 'surviving period' and were time-barred if issued beyond it. The Tribunal found that the notices in this case were issued after the expiry of the permissible period.

Key Issues

Whether the notices issued under Section 148 of the Income Tax Act for reopening the assessment were within the prescribed time limit as per the 'surviving period' laid down by the Supreme Court, and if not, whether the consequential assessment orders are liable to be quashed.