Reopening is invalid if the escaped income is below ₹50 lakh and the notice was issued after the 3-year limit
Recently, the court has held that Reopening is invalid if the escaped income is below ₹50 lakh and the notice was issued after the 3-year limit
The case pertains to the Assessment Year 2017–18.
The assessment was reopened under Section 148 of the Act, alleging that the stamp duty value of a purchased property exceeded the declared consideration, leading to unexplained investment.
The reopening was challenged as being beyond the statutory time limit (3 years for income below ₹50 lakh, as per Section 149(1)(b)).
The assessee contended the valuation date for the stamp duty value should be the booking date in 2013, not the registration date in 2016.
The reassessment was also disputed for procedural lapses and improper approval.
The reopening of the case was held invalid because the escaped income (₹35.13 lakh) was below ₹50 lakh, and the notice was issued after the 3-year limit.
The ITAT quashed the reassessment proceedings .
The appeal filed by the assessee was allowed, and the reassessment proceedings were quashed.
The Copy Of the Appellate is as under:
