June 2022
Period of limitation — Legislative powers — Delegated legislation — CBDT — Reassessment — Notice u/s 148 — Limitation — Extension of period of limitation to period beyond 31-3-2021 — Explanations by notifications traversing beyond parent Act — Extension of period of limitation through notifications not valid — Notices issued barred by limitation
By K. B. Bhujle
Advocate
17 Tata Communications Transformation Services Ltd. vs. ACIT [2022] 443 ITR 49 (Bom.) Date of order: 29th March, 2022 Ss. 147 and 151 of ITA, 1961
Period of limitation — Legislative powers — Delegated legislation — CBDT — Reassessment — Notice u/s 148 — Limitation — Extension of period of limitation to period beyond 31-3-2021 — Explanations by notifications traversing beyond parent Act — Extension of period of limitation through notifications not valid — Notices issued barred by limitationA bunch of writ petitions filed by various assessees to challenge the initiation of reassessment proceedings u/s 147 of the Income-tax Act, 1961 by issuing notices u/s 148 for different assessment years were taken up by the Bombay High Court for hearing together as the issues were common. All notices in these petitions were issued after 1st April, 2021; however, under the Act’s provisions, as it existed before 1st April, 2021. The High Court held as under:
“i) U/s. 147 as amended by the Finance Act, 2021 the new period of limitation provided is three years unless the income chargeable to tax, which has escaped assessment, amounts to or is likely to amount Rs. 50 lakhs or more in which case, the limitation period for issuing notice u/s. 148 would be ten years from the end of the relevant assessment year.
ii) The Notes on Clauses to the Finance Bill, 2021 clearly at every stage provide that the Bill proposes to su
