Facts of the Case

  • The petitioner is Filatex India Ltd., assessed for AY 2012–13.
  • A scrutiny assessment under Section 143(3) was completed on 16.03.2015.
  • A search under Section 132 was conducted on 01.09.2021.
  • Subsequently, a notice under Section 148 dated 13.03.2023 was issued.
  • The petitioner contended that the notice was issued beyond the permissible limitation period.
  • A tabular computation (noted on page 2 of the judgment) showed that AY 2012–13 falls beyond both the 6-year and 10-year limitation thresholds, thereby attracting the bar of limitation.

Issues Involved

  1. Whether the reassessment notice issued under Section 148 for AY 2012–13 is barred by limitation under Section 149(1).
  2. Whether the extended limitation provisions applicable post-search under Section 153A can revive time-barred assessments.
  3. Applicability and interpretation of the first proviso to Section 149(1) in the context of search proceedings.

Petitioner’s Arguments

  • The notice issued under Section 148 is ex facie time-barred.
  • Reliance was placed on:
    • First proviso to Section 149(1)
    • Section 153A(1)(b) and Explanation 1
  • A computation chart demonstrated that AY 2012–13 is beyond:
    • 6-year limitation
    • Even extended 10-year limitation
  • Reliance placed on precedent:
    A.R. Safiullah vs Assistant Commissioner of Income Tax (Madras High Court, 2021)
  • It was argued that search proceedings cannot override statutory limitation bars.

Respondent’s Arguments

  • The Revenue accepted notice at the stage of admission.
  • Detailed counter-arguments were not recorded at this interim stage, as time was granted to file a counter-affidavit.

Court Order / Findings

  • The Delhi High Court issued notice in the writ petition.
  • The Court granted interim relief:
    • Stay on the operation of the impugned notice dated 13.03.2023 till further directions.
  • The matter was listed for further hearing, and timelines were set for filing counter-affidavit and rejoinder. 

Important Clarification

  • The Court has not finally adjudicated the issue; however:
    • It found a prima facie case in favour of the petitioner regarding limitation.
    • Grant of stay indicates judicial concern regarding validity of reassessment beyond statutory time limits.
  • The case is connected with similar issues pending in:
    Alankit Insurance TPA Ltd. vs DCIT (Delhi High Court)

Link to download the order -https://delhihighcourt.nic.in/app/showFileJudgment/60815092023CW121482023_181642.pdf

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