AUSTRALIA AND NEW ZEALAND BANKING GROUP LTD.,MUMBAI vs. DCIT(INTERNATIONAL TAX) 1(1)(2), MUMBAI

Facts

The assessee, Australia and New Zealand Banking Group Limited, a banking company resident in Australia with branches in India, was subjected to reassessment for AY 2014-15. The Assessing Officer initiated proceedings based on information that the assessee's Singapore branch received interest of Rs. 91,08,957/- from Hubergroup India Pvt. Ltd. without TDS, which was believed to have escaped assessment. A notice under Section 148 of the Act was issued on 29/06/2021, prompting the assessee to challenge the validity of these proceedings on grounds of limitation.

Held

The tribunal, relying on judicial precedents including Hon'ble Bombay High Court decisions in Godrej Industries Ltd. and Hexaware Technologies Ltd., held that the reassessment proceedings initiated for AY 2014-15 were beyond the time limit prescribed under Section 149 of the Act. The right to reopen the assessment had already been barred under the pre-amended Act. Consequently, the tribunal concluded that the impugned proceedings were vitiated and liable to be quashed.

Key Issues

Whether the reassessment proceedings initiated for AY 2014-15 under Section 147 read with Section 148 of the Income Tax Act were valid, considering the limitation period prescribed by Section 149 of the Act, especially in light of the Finance Act 2021 amendments and the Supreme Court's decision in Ashish Agarwal.