Interim relief against proceedings u/s 148 for being beyond 3 years – Delhi High Court.

In a recent case, the Division Bench of Hon’ble Delhi High Court has granted an interim relief in proceedings under Section 148 of the Income Tax Act (“Act”) for being beyond the period of 3 years as per S. 149(1)(a) of the Act.

The fact of the case in W.P(C) No. 11527/2022 are that the assessee has received the notice under unamended Section 148 of the Act on 26.04.2021 for the AY 2017-18 and subsequent 148 Notice on 30.06.2022, issued in pursuance of the Hon’ble Supreme Court judgement in the case of Union of India & Ors. vs. Ashish Aggarwal (2022) 444 ITR 1 (SC). The admitted amount of income which allegedly escaped assessment as per the notices is Rs. 5.70 Lacs.

However, the provisions of Section 149(1)(a) which are in effect from 01.04.2021, prevent the issuance of notice under Section 148 beyond the period of 3 years if the income is less than Rs. 50 Lacs.

Considering the submissions of the Petitioner, the Hon’ble High Court has granted an interim relief directing that the proceedings under S. 148 may go on, however the final order shall not be given effect to till the further orders of the Hon’ble High Court.

Please read the order of Hon’ble High Court at 1659621627654_87670_2022

Yuvraj is an advocate and has completed his B.A. LL.B(Hons) from RGNUL-Punjab. He is a practicing advocate and has been involved in matters pertaining to GST and other indirect taxes as well as Direct Tax. He is active in Writ Courts and has involvement in a few landmark judgments like Pitambra Books Pvt. Ltd. V. Union of India (W.P.C. No. 627 of 2020), and represented Sales Tax Bar Association (Delhi) to resolve GST issues and glitches.

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