Case Note & Summary
The petitioner, AMNS Khopoli Limited (formerly Uttam Galva Steels Limited), challenged a notice dated 31st May 2023 issued by the Assistant Commissioner of Income Tax (International Tax) under Section 143(2) of the Income Tax Act, 1961 for the assessment year 2016-17. The petitioner contended that the notice was barred by limitation under Section 149 of the Act, which prescribes a time limit for issuance of such notices. The court examined the relevant provisions and found that the notice was issued beyond the permissible period. The court held that the Assessing Officer lacked jurisdiction to issue the notice and quashed it. The petition was allowed with no order as to costs.
Headnote
A) Income Tax - Limitation - Section 143(2) Notice - Section 149 of Income Tax Act, 1961 - The notice under Section 143(2) was issued on 31st May 2023 for the assessment year 2016-17, which is beyond the period of six years from the end of the relevant assessment year as prescribed under Section 149. The court held that the notice is barred by limitation and quashed it. (Paras 1-10) B) Income Tax - Reassessment - Validity of Notice - Section 149 of Income Tax Act, 1961 - The court examined the timeline and found that the notice was issued after the expiry of the statutory period. The court held that the Assessing Officer lacked jurisdiction to issue the notice. (Paras 5-10) C) Corporate Law - Change of Name - CIRP - Insolvency and Bankruptcy Code, 2016 - The petitioner was formerly known as Uttam Galva Steels Limited and underwent a change of name after acquisition under CIRP. The court noted the change but did not base its decision on this fact. (Para 3)
Issue of Consideration
Whether the notice dated 31st May 2023 issued under Section 143(2) of the Income Tax Act, 1961 is barred by limitation and therefore invalid.
Final Decision
The court quashed the notice dated 31st May 2023 issued under Section 143(2) of the Income Tax Act, 1961. The petition was allowed. Rule made absolute. No order as to costs.
Law Points
- Limitation period for issuance of notice under Section 143(2) of Income Tax Act
- 1961
- Section 149 of Income Tax Act
- Reassessment notice beyond time limit
- Invalid notice
- CIRP and change of name
- Corporate Insolvency Resolution Process
