• Notification Date: 26-12-2023
• Notification No: N/A

Validity of Reassessment Order passed under Section 148 of Income Tax Act: Supreme Court Dismisses SLP

The Supreme Court of India dismissed the Special Leave Petition (SLP)which was against the order  Validity of Reassessment Order passed U/s 148 of the Income Tax Act passed by the High Court of Punjab & Haryana At Chandigarh by which the validity of reassessment order passed under section 148 of the Income Tax Act, 1961 was challenged. Prem Chand Markanda Sd College for Women, the petitioner before the High Court challenged the order under section 148 of the Income Tax Act, 1961 along with the order passed under clause (d) of Section 148A of the Act, being without jurisdiction and against the 3rd proviso to Section 12A-(2) of the Act. 

The petitioner-assessee is a society registered under the Registrar of Societies, Punjab, vide certificate dated 21.06.1993. The assessee has been running a college exclusively for girls since 1973 and a school for plus one and two for girls' students separate from the college, which is an integral part of the college as well.  Petitioner-assessee is getting substantial aid from the State Government in the shape of reimbursement of staff salary and therefore, before assessment year 2016-17, it was entitled to blanket exemption from income tax in terms of clause (IIIAB) of section 10 (23C) of the Act. The High Court held that “no proceedings under Section 147 can be initiated for the assessment year 2015-16. Hence, impugned notices 16.03.2022, 29.03.2022 (Annexures P-3 and P-6) and the consequent order dated 29.03.2022 (Annexure P-5) passed under Section 148A(d) of the Act being contrary to the 3rd proviso to Section 12A-(2) of the Act, are set aside.” 

A two-judge bench of Justice B V Nagarathna and Justice Ujjal Bhuyan heard the petition even though there was a delay of 191 days in filing the special leave petition and refused to incline to interfere in the matter(s). The Supreme Court dismissed the Special Leave Petition and all pending applications.