In a recent development, the Delhi
High Court has issued an order
quashing a reassessment notice
dated 31 March 2023, pertaining
to Assessment Year (AY) 2013-14,
under Section 148 of the Income
Tax Act, 1961. The court's decision
came in response to a writ petition
filed by Flowmore Limited
challenging the said notice
The court's order, delivered by
Hon'ble Mr. Justice Yashwant
Varma and Hon'ble Mr. Justice
Purushaindra Kumar Kaurav on
27th May 2024, outlined several
key points:
1. Background: The petition
challenged a notice issued by the
Deputy Commissioner of Income
Tax, Central Circle 28, New Delhi,
under Section 148 of the Act
seeking to reassess Flowmore
Limited for AY 2013-14
2. Applicable Provisions: The
court noted that since the notice
was issued after 31 March 2021, it
falls under the amended regime of
reassessment, subject to the
provisions of the First Proviso to
Section 149(1) of the Act.
3. Legal Framework: The First
Proviso to Section 149(1)
stipulates specific time limits for
issuing reassessment notices,
especially for AYs prior to 1 April
2021.
4. Judicial Precedent: The court
referred to its earlier decision in
Filatex India Ltd.vs.Deputy
Commissioner of Income Tax &
Anr., highlighting the importance
of adhering to statutory
timeframes for reassessment
under relevant sections of the Act.
5. Case Specifics: Flowmore
Limited had previously been
subjected to a search and seizure
operation related to the Alankit
Group, resulting in a final
assessment order on 23 March
2023. The subsequent notice for
reassessment, dated 31 March
2023, was linked to a search
operation concerning the Proform
Group.
6. Legal Ruling: The court
concluded that the reassessment
for AY 2013-14 could not be
sustained as it fell beyond the ten-
year block period prescribed under
Section 153C read with Section
153A of the Act.
7. Court Decision: Accordingly, the
Delhi High Court allowed the writ
petition and quashed the
reassessment notice dated 31
March 2023, issued under Section
148 of the Income Tax Act
Case Number:
W.P.(C) 3738/2024
Petitioner vs. Respondent:
Flowmore Limited vs. Deputy
Commissioner of Income Tax
Central Circle 28, New Delhi & Anr.
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