New Delhi, Aug 25 The Punjab and Haryana High Court has issued a notice under section 148 for assessment year 2013-14 and also stayed further proceedings, being barred by limitation and the instruction issued by CBDT being misleading in view of provision of section 149(1) and Supreme Court judgement in the case of Ashish Aggarwal, chartered accountant Ved Jain said in a post.
The Court noted" "It is argued that the proceedings pertaining to assessment year 2013-2014 are time barred by virtue of the proviso to Section 149 of the Income Tax Act. The provision to Section 149 specifically provides that no notice under Section 148 shall be issued if such notice could not have been issued at that time on account of being beyond the time limit specified under the provisions of Sub Section (1) (b) of the Section as it stood immediately before."
The commencement of Finance Act 2021 as such in terms of proviso to Section 149 as amended w.e.f. 01.04.2021 since more than 6 years had elapsed from the end of assessment year 2013-2014 on 31.03.2020, the re-assessment notice for assessment year 2013-2014 could not be issued, Jain said in the post.
It is vehemently asserted that the initiation of proceedings by issuance of notice under Section 148 A (d) for assessment year 2013-2014 are wholly without jurisdiction and are time barred.
Further contended that the department is purportedly proceeding on the basis of CBDT instructions dated 11.05.2022 (Annexure P-7) which in turn proceed directly in the teeth of the dictum laid down by Supreme Court in Ashish Agarwal case and on a clear misleading thereof. On such ground a challenge to such circular dated 11.05.2022 has also been raised in the instant petition.
The Court after taking note of above issued notice of motion and ordered "further proceedings in the matter shall be kept in abeyance till further orders".
Jain said this is a good development and now taxpayers can expect relief for assessment year 2013-14 and AY 2014-15.
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