The Delhi High Court clarified that Income Tax notices can't be issued beyond three years if concealed income is below Rs 50 lakh. The ruling provides relief to taxpayers and curbs unwarranted notices.
Section 148 of the I-T Act allows reassessment, but the court emphasized limits based on concealed amount and time. The decision quashed about 50 reassessment notices for AY 2016-17 and 2017-18 where income concealment was below Rs 50 lakh.
Tax experts anticipate this will serve as a valuable tool to challenge such notices in the future, aligning with existing rules.