Case Note & Summary
The petitioner, Mamataben Piyushkumar Boda, filed a Special Civil Application under Article 226 of the Constitution of India challenging a notice dated 31.07.2022 issued under section 148 of the Income Tax Act, 1961 for Assessment Year 2017-2018. The Assessing Officer had initially issued a notice under section 148 on 11.06.2021 during the extended time period under the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 (TOLA). Pursuant to the Supreme Court's decision in Union of India v. Ashish Agarwal (2022) 444 ITR 1 (SC), the notice was to be treated as a notice under section 148A(b) of the Act. The Supreme Court in Union of India v. Rajeev Bansal (2024) 469 ITR 46 (SC) laid down the principle that the validity of such notices depends on the 'surviving time' between the date of issuance under TOLA and 30.06.2021. The Gujarat High Court, following its earlier decision in Dhanraj Govindram Kella v. Income Tax Officer (2025), held that each case must be examined on its facts. In this case, the original notice was issued on 11.06.2021, and the reassessment notice was issued on 31.07.2022. The court found that no time survived after 30.06.2021, and therefore the notice was invalid and time-barred. The petition was allowed, and the impugned notice was quashed.
Headnote
A) Income Tax - Reassessment Notice - Section 148 of Income Tax Act, 1961 read with TOLA - Validity of Notice - The petitioner challenged a notice under section 148 dated 31.07.2022 for AY 2017-2018 as time-barred. The court applied the 'surviving time' principle from Union of India v. Rajeev Bansal (2024) 469 ITR 46 (SC) and held that since the original notice under TOLA was issued on 11.06.2021 and the reassessment notice was issued on 31.07.2022, no time survived after 30.06.2021, rendering the notice invalid. (Paras 1-7)
Issue of Consideration
Whether the notice under section 148 of the Income Tax Act, 1961 dated 31.07.2022 for Assessment Year 2017-2018 is valid in light of the 'surviving time' principle laid down in Union of India v. Rajeev Bansal (2024) 469 ITR 46 (SC).
Final Decision
The petition is allowed. The impugned notice under section 148 of the Income Tax Act, 1961 dated 31.07.2022 for Assessment Year 2017-2018 is quashed and set aside.
Law Points
- Reassessment notice under section 148 of Income Tax Act
- 1961 must be issued within the time extended under TOLA
- if no surviving time remains after 30.06.2021
- the notice is invalid
Case Details
2026 LawText (GUJ) (03) 506
R/Special Civil Application No. 3628 of 2026
Honourable Mr. Justice A.S. Supehia, Honourable Mr. Justice Pranav Trivedi
Mr. Saubhagya Mishra for Mr. Om Prakash Shukla for the Petitioner, Mr. Maunil G Yajnik for the Respondent
Mamataben Piyushkumar Boda W/o Piyushkumar Boda
Income Tax Officer Ward 1
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Nature of Litigation
Writ petition under Article 226 challenging reassessment notice under section 148 of Income Tax Act, 1961
Remedy Sought
Quashing of notice dated 31.07.2022 under section 148 of the Income Tax Act, 1961 for Assessment Year 2017-2018
Filing Reason
Notice was issued beyond the time limit and was invalid as per the 'surviving time' principle
Previous Decisions
Notice under section 148 was initially issued on 11.06.2021 under TOLA; later treated as notice under section 148A(b) per Ashish Agarwal; reassessment notice issued on 31.07.2022
Issues
Whether the notice under section 148 dated 31.07.2022 for AY 2017-2018 is valid in light of the 'surviving time' principle laid down in Rajeev Bansal
Submissions/Arguments
Petitioner argued that the notice is time-barred and invalid as no surviving time remained after 30.06.2021
Respondent argued based on the provisions of TOLA and the decisions of the Supreme Court
Ratio Decidendi
A reassessment notice under section 148 of the Income Tax Act, 1961 issued after 30.06.2021 is invalid if no 'surviving time' remained from the original notice issued under TOLA. The principle from Rajeev Bansal requires examining the date of issuance under TOLA and the date of the subsequent notice; if the period between the original notice and 30.06.2021 has expired, the notice is time-barred.
Judgment Excerpts
This petition is filed under Article 226 of the Constitution of India challenging the notice under section 148 of the Income Tax Act, 1961 dated 31.07.2022 on the ground that the notice would be invalid and time barred.
The Hon’ble Apex Court in case of Union of India v. Rajeev Bansal reported in (2024) 469 ITR 46 (SC) has laid down the law to consider such notice as valid notice or invalid notice depending upon the surviving time left between the date of issuance of notice under section 148 of the Act read with section 3(1) of TOLA upto 30.06.2021 and the issuance of notice under section 148 pursuant to the directions issued by the Hon’ble Apex Court in case of Ashish Agarwal (supra).
Procedural History
The Assessing Officer issued notice under section 148 on 11.06.2021 under TOLA for AY 2017-2018. Pursuant to Ashish Agarwal, the notice was treated as under section 148A(b). Thereafter, a fresh notice under section 148 was issued on 31.07.2022. The petitioner filed the present writ petition challenging the notice as time-barred.
Acts & Sections
- Income Tax Act, 1961: 148, 148A(b)
- Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020: 3(1)
- Constitution of India: 226
