Karnataka HC Quashes Time-Barred Income Tax Assessment Orders Passed After Settlement Commission Proceedings
Taxscan
The Karnataka High Court quashed time-barred income tax assessment orders and penalties as they were issued beyond the one-year statutory limit following settlement commission proceedings.Summary
The Karnataka High Court invalidated income tax assessment orders and associated penalties issued by the Assessing Officer on 03.02.2017 for the Assessment Years 2006-07 to 2012-13. The court ruled these orders were time-barred under Section 153B of the Income Tax Act, as they were passed after the one-year deadline calculated from the Settlement Commission's final ruling on 10.12.2015. The petitioner, RNS Infrastructure Limited, argued that the Revenue failed to act within the permissible period after the commission's decision. The court also quashed penalty notices under Section 274 and deemed show-cause notices infructuous. The decision emphasized strict adherence to statutory timelines in tax assessments.
(Source：Taxscan)