RAMESH BABU BEJJALA,KOTHAGUDEM vs. INCOME TAX OFFICER, WARD-1, KOTHAGUDEM

Facts

The assessee, Ramesh Babu Bejjala, challenged an assessment order under section 147 r.w.s 144B of the Income Tax Act, 1961. The Assessing Officer (AO) initiated reassessment proceedings for AY 2015-16 based on flagged financial transactions and the assessee's failure to file a return. The AO assessed the income at Rs. 31,23,000/-, treating the cash deposits as unexplained income.

Held

The Tribunal held that the notice issued under section 148 of the Act was barred by limitation. The notice dated 25/04/2022 was issued beyond the time limit specified under the pre-amended section 149(1)(b) of the Act, which expired on 31/03/2022. The 'first proviso' to section 149 of the Act, as amended by the Finance Act, 2021, was applicable and restricted the issuance of such notices. The Tribunal concluded that the AO lacked valid jurisdiction to issue the notice.

Key Issues

Whether the notice issued under Section 148 of the Income Tax Act, 1961 for reassessment for AY 2015-16 was barred by limitation as per the provisions of Section 149 of the Act?