DELHI HC: TOWNPARK BUILDCON PVT. LTD. v. ACIT, CC 15 & ORS. [2025 (5) TMI 291]
Background: The Petitioner Townpark Buildcon Pvt. Ltd., filed its return of income for the Assessment year 2015-16 on 25.09.2025 declaring an income of Rs. 89,72,493/-. On 02.03.2022, a search was conducted under section 132 of the Income Tax Act, 1961 at the premises of the person belonging to the gaur group. Based on certain material found during the search, the Assessing officer (AO) issued a notice under section 148 of the Income Tax Act on 29.08.2024 seeking to reopen the assessment for the A.Y. 2015-16. The Petitioner contended that the notice was issued beyond the period of limitation.
Decision: The Delhi High Court held that the reassessment notice issued under section 148 of the Income tax Act was barred by limitation. The court considered the applicability of section 153C of the Act, even though it is inapplicable to search which is conducted after 31.01.2021, to determine the validity of the notice under section 148 in view of the proviso to section 149(1) of the Act. The court emphasizes that for considering the limitation under section 153C, the relevant date is when the AO decided to initiate reassessment proceedings. The block of ten assessment years was reckoned from the end of AY 2025-26, the Assessment year relevant to the financial year in which the notice under section 148 was issued.
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