Bombay HC grants relief to Godrej Industries in a Dispute against the Income Tax department
Godrej Industries, the Bombay High Court has held the show cause notice issued by the revenue department against the group ‘bad in law’ and has clarified that it was barred by the limitation.
In this case, Godrej Industries had challenged the show cause notice issued by the income tax department on May 22, 2022, with the arguments that the notice was issued during the pendency of reassessment proceedings under an earlier notice and, therefore, is illegal.
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Mumbai-headquartered conglomerate, through senior counsel PJ Pardiwalla, argued that as per the unamended Section 149(1)(b) of the Act, the outer time limit to issue a notice under Section 148 was six years from the end of the relevant assessment year and, thus, for the assessment year 2014-15, hence, the time limit to issue a notice expired on March 2021.
Section 148 of the Income Tax Act 1961 gives authority to the Assessing Officer to send notice to a taxpayer whose income has not been properly assessed. This implies that if the Assessing
