The Income Tax Appellate Tribunal, Chennai, quashed the income tax reassessment against Hyundai for being time barred.
The bench noted that the notice u/s 148 was issued to assessee on 15.04.2021 after enactment of the Finance Act, 2021 wherein the section 148 has undergone drastic change specifically in respect of limitation, quantum of escapement, approval and procedure.
The tribunal observed that the Substituted Section 149 is the provision governing the time-limit for issuance of notice under Section 148 of the IT Act. The substituted Section 149 of the IT Act has reduced the permissible time-limit for issuance of such a notice to three years and only in exceptional cases ten years. It also provides further additional safeguards which were absent under the earlier regime pre-Finance Act, 2021.
The bench held that the notice u/s 148 dated 15.04.2021 to re-open the assessment for AY 2015-16 is barred by limitation u/s 149(1)(b) of the Substituted Act of 2021 i.e; Finance Act, 2021.
The bench set aside all the consequential reassessment proceedings pursuant to the impugned notice u/s 148.
It was found by the tribunal that the AO had no sanction or approval for issuance of notice u/s 148 as per newly substituted Finance Act, 2021.
Facts
The captioned appeal is preferred by the assessee against the order of the Assessing Officer framing assessment for Assessment Year 2015-16 u/s.143(3) r.w.s.147 r.w.s.144C(13) of the Income Tax Act, 1961 by order dated 12.12.2023 pursuant to the Dispute Resolution Panel-2 , Bengaluru, direction u/s 144C(5).
Hyundai Transys INC submitted that the assessment order passed by the Deputy Commissioner of Income Tax, International Tax, Corporate Circle under section 143(3) r.w.s 147 r.w.s 144C(13) of the Income-tax Act, 1961 is bad in law and is contrary to the facts and circumstances of the case.
Case Information
Case Name: Hyundai Transys INC v/s The Deputy Commissioner of Income Tax
Citation: ITA No.338/Chny/2024
Jurisdiction: ITAT Chennai
Judges: Shri Manoj Kumar Aggarwal, Am And Shri Manu Kumar Giri, Jm
