Case Note & Summary
The petitioner, Nitinbhai Raghavji Dhedhi, filed a Special Civil Application under Article 226 of the Constitution of India challenging a notice dated 29.06.2022 issued under section 148 of the Income Tax Act, 1961 for the Assessment Year 2017-2018. The notice was originally issued on 11.06.2021 under section 148 during the extended time period provided by the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 (TOLA). However, following the Supreme Court's decision in Union of India v. Ashish Agarwal (2022) 444 ITR 1 (SC), such notices were to be treated as notices under section 148A(b) of the Act, which came into effect from 01.04.2021. Subsequently, the Supreme Court in Union of India v. Rajeev Bansal (2024) 469 ITR 46 (SC) 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, in Dhanraj Govindram Kella v. Income Tax Officer (judgment dated 08.07.2025), had already considered this issue in detail. Applying the same principle, the court found that the notice in the present case was issued on 29.06.2022, and no time survived after the Ashish Agarwal directions, making the notice invalid and time-barred. The court allowed the petition and quashed the notice.
Headnote
A) Income Tax - Reassessment Notice - Time Bar - Section 148 of Income Tax Act, 1961 read with Section 3(1) of Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 - The court examined whether a notice under section 148 issued on 29.06.2022 for AY 2017-2018 was valid considering the 'surviving time' between the date of issuance under TOLA and 30.06.2021. Following Union of India v. Rajeev Bansal (2024) 469 ITR 46 (SC) and Dhanraj Govindram Kella v. Income Tax Officer, the court held that since the notice was issued on 29.06.2022, no time survived after the Ashish Agarwal directions, rendering the notice invalid and time-barred. (Paras 1-8)
Issue of Consideration
Whether the notice under section 148 of the Income Tax Act, 1961 dated 29.06.2022 is invalid and time-barred in light of the law laid down in Union of India v. Rajeev Bansal (2024) 469 ITR 46 (SC) and Dhanraj Govindram Kella v. Income Tax Officer.
Final Decision
Petition allowed. Notice under section 148 of the Income Tax Act, 1961 dated 29.06.2022 is quashed and set aside as invalid and time-barred.
Law Points
- Reassessment notice under section 148 of Income Tax Act
- 1961
- issued during extended period under TOLA must be examined for surviving time left between date of notice and 30.06.2021
- if no time remains
- notice is invalid
- principle laid down in Union of India v. Rajeev Bansal (2024) 469 ITR 46 (SC) applied.
Case Details
2026 LawText (GUJ) (03) 524
R/Special Civil Application No. 3627 of 2026
A.S. Supehia, Pranav Trivedi
Saubhagya Mishra for Om Prakash Shukla for petitioner, Maunil G Yajnik for respondent
Nitinbhai Raghavji Dhedhi S/o Raghavjibhai Dhedhi
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.
Remedy Sought
Quashing of notice dated 29.06.2022 under section 148 of the Income Tax Act, 1961 for AY 2017-2018.
Filing Reason
Notice was allegedly invalid and time-barred.
Previous Decisions
Notice originally issued on 11.06.2021 under section 148 during TOLA extended period; treated as notice under section 148A(b) after Ashish Agarwal decision; subsequent notice issued on 29.06.2022.
Issues
Whether the notice under section 148 dated 29.06.2022 is invalid and time-barred.
Whether the 'surviving time' principle applies to render the notice invalid.
Submissions/Arguments
Petitioner argued that the notice is invalid and time-barred.
Respondent relied on TOLA extension and Ashish Agarwal directions.
Ratio Decidendi
A notice under section 148 of the Income Tax Act, 1961 issued after the Ashish Agarwal directions must be examined for 'surviving time' between the date of issuance under TOLA and 30.06.2021. If no time survives, the notice is invalid. In this case, the notice was issued on 29.06.2022, leaving no surviving time, hence invalid.
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 29.06.2022 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 11.06.2021 for AY 2017-2018 during TOLA extended period. After Ashish Agarwal decision, treated as notice under section 148A(b). Subsequently, notice under section 148 issued on 29.06.2022. Petitioner filed Special Civil Application No. 3627 of 2026 challenging the notice. Heard on 16.03.2026 and judgment delivered same day.
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
