Reassessment notice issued for wrong AY can’t be corrected: HC

Case Details: Infineon Technologies AG v. DCIT - [2022] 141 taxmann.com 288 (Karnataka)

Judiciary and Counsel Details

• • M.I. Arun, J.
  • T. Suryanarayana, Sr. Adv. & Smt. Tanmayee Rajkumar, Adv. for the Petitioner.
  • K.V. Aravind, Adv. for the Respondent.

Facts of the Case

The instant writ petition was filed on the ground that the reopening of the assessment by the Assessing Officer was time-barred. The Assessing Officer (AO) contended that the reassessment wasn’t time-barred and it had been initiated in accordance with law and prayed for dismissal of the writ petition.

High Court Held

The Karnataka High Court held that the case of the assessee was that a notice dated 31-3-2017 was issued on 4-4-2017. The copy of the track consignment also showed that the notice was booked on 4-4-2017 and was delivered on 12-4-2017.

The notice states that the income that has escaped assessment within the meaning of section 147 pertains to the assessment year 2015-16. However, given the period of limitation, the notice was required to be issued on or before 31-3-2017.

Later, by way of corrigendum dated 11-4-2017, the authorities sought to correct the mistake in the original notice and stated that the same had been issued for the assessment years 2010-11 and not 2015- 16.

The first notice categorically stated that the authorities intended to reopen the assessment to determine to escaped income for the assessment year 2015-16. By the first notice, the AO had invoked their jurisdiction to reopen the assessment for the assessment years 2015-16 and not 2010-11.

With regard to the assessment year 2010-11, AO sought to invoke their jurisdiction by the issuance of notice dated 11-4-2017 which is styled as a corrigendum. By the said corrigendum, it cannot be said that it has sought to cure a procedural irregularity as contemplated under section 292B.

It has to be held that AO had invoked the jurisdiction to reopen the assessment for the year 2010-11 only after the issuance of the said corrigendum on 11-4-2017 which was time-barred.