Case Note & Summary
The petitioner, LH of Late Jamnaben Babarbhai Patel, Manishkumar Amrutlal Patel, filed a Special Civil Application under Article 226 of the Constitution of India challenging a notice under section 148 of the Income Tax Act, 1961 dated 26.07.2022 for Assessment Year 2013-2014. The respondent, Income Tax Officer, Ward 1(2)(1), Surat, had initially issued a notice under section 148 on 10.06.2021 during the extended 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, this 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 laid down 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, held that each case must be examined on its facts. In the present case, the notice under TOLA was issued on 10.06.2021, leaving only 20 days until 30.06.2021. The subsequent notice under section 148 was issued on 26.07.2022, which was beyond the permissible period. The court found that there was no surviving time, rendering the notice 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 - Time Bar - Notice issued on 26.07.2022 for AY 2013-2014 under TOLA was held invalid as there was no surviving time between the date of issuance under TOLA and 30.06.2021 - Court followed the principle in Union of India v. Rajeev Bansal and Dhanraj Govindram Kella v. Income Tax Officer - Held that the notice is time-barred and invalid (Paras 1-6).
Issue of Consideration
Whether the notice under section 148 of the Income Tax Act, 1961 issued on 26.07.2022 for Assessment Year 2013-2014 is valid or time-barred considering the 'surviving time' under TOLA and the decision in Union of India v. Rajeev Bansal.
Final Decision
The petition is allowed. The impugned notice under section 148 of the Income Tax Act, 1961 dated 26.07.2022 is quashed and set aside.
Law Points
- Reassessment notice under section 148 of Income Tax Act
- 1961
- Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance
- 2020
- surviving time
- validity of notice
- time bar
Case Details
2026 LawText (GUJ) (03) 511
R/Special Civil Application No. 8665 of 2023
A.S. Supehia, Pranav Trivedi
Jaimin A. Gandhi for petitioner, Karan G. Sanghani for respondent
LH of Late Jamnaben Babarbhai Patel, Manishkumar Amrutlal Patel
The Income Tax Officer, Ward 1(2)(1), Surat
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Nature of Litigation
Writ petition under Article 226 challenging reassessment notice under section 148 of Income Tax Act.
Remedy Sought
Quashing of notice under section 148 dated 26.07.2022 for Assessment Year 2013-2014.
Filing Reason
Notice was alleged to be invalid and time-barred.
Previous Decisions
Notice under section 148 was initially issued on 10.06.2021 under TOLA; treated as notice under section 148A(b) per Ashish Agarwal; subsequent notice under section 148 issued on 26.07.2022.
Issues
Whether the notice under section 148 dated 26.07.2022 is valid considering the 'surviving time' under TOLA.
Whether the notice is time-barred.
Submissions/Arguments
Petitioner argued that the notice is invalid and time-barred.
Respondent relied on TOLA and the decisions in Ashish Agarwal and Rajeev Bansal.
Ratio Decidendi
The validity of a reassessment notice under section 148 issued after the TOLA period depends on the 'surviving time' between the date of issuance under TOLA and 30.06.2021. If there is no surviving time, the notice is invalid and 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 26.07.2022 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
Notice under section 148 issued on 10.06.2021 under TOLA for AY 2013-2014. Treated as notice under section 148A(b) per Ashish Agarwal. Subsequently, notice under section 148 issued on 26.07.2022. Petitioner filed writ petition challenging the notice.
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
