JHARKHAND HIGH COURT: REOPENING NOTICE ISSUED UNDER SECTION 148 MERITS TO BE QUASHED IF BARRED BY LIMITATION PERIOD PRESCRIBED U/S 149 OF THE ACT

The Jharkhand High Court in the case M/s. Sevensea Vincom Private Limited Verses Principal Commissioner of Income Tax observed and has ruled that the very initiation of reassessment proceeding is wholly without jurisdiction.

The court in the case observed that the notice issued under section 148 is barred by the limitation period prescribed under section 149 of the Income tax Act, 1961.

The Division bench comprising of Justice Rongon Mukhopadhyay and Justice Deepak Roshan in the case observed that the threeyear time period of Assessment Year 2016-17 had ended on March 31, 2020. Thus, the Impugned Notice, dated July 21, 2022, is beyond 3 years' time period.

Further, the court sated that the said notice is for alleged escaped income for an amount of Rs. 39,21,450/which is less than Rs.

50,00,000/- and thus, the said notice cannot take the benefit of extended period of limitation which is beyond three years till ten years. (Para 10) Facts of the Case: The assessee company was issued notice under section 148 of the Act.