Case Note & Summary
The petitioner assessee challenged the order under Section 148A(d) dated 20.07.2022 and the consequent reassessment notice under Section 148 dated 21.07.2022 for Assessment Year 2013-2014, contending it was time-barred. The original notice under Section 148 was issued on 10.06.2021 during the extended period provided by the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (TOLA). Following the Supreme Court’s decision in Union of India v. Ashish Agarwal, this notice was deemed a show-cause notice under Section 148A(b). The Assessing Officer supplied information on 26.05.2022, making the due date for reply 10.06.2022. No reply was filed, and the order under Section 148A(d) and the fresh notice under Section 148 were passed on 20.07.2022 and 21.07.2022 respectively. The petitioner argued that the reassessment notice was invalid as it was issued beyond the surviving time limit stipulated by the Supreme Court in Union of India v. Rajeev Bansal. The Revenue could not controvert the factual matrix. The Court, relying on its earlier decision in Dhanraj Govindram Kella, held that for Assessment Year 2013-2014, where the original notice was issued on 10.06.2021, the surviving time till 30.06.2021 was 20 days. Consequently, the last date for issuance of the reassessment notice under the new regime was 01.07.2022. Since the order under Section 148A(d) was passed on 20.07.2022, it was beyond the surviving period and thus time-barred. The Court quashed the impugned order and all consequential proceedings, holding them invalid and liable to be set aside in accordance with the dictum in Rajeev Bansal.
Headnote
A) Taxation - Reassessment Proceedings - Validity of Notice under Section 148 - Income Tax Act, 1961, Sections 147, 148, 148A(b), 148A(d); Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 - The Assessing Officer issued a notice under Section 148 on 10.06.2021 for AY 2013-14 during the extended period under TOLA, which was deemed a notice under Section 148A(b) per Ashish Agarwal. The surviving time from 10.06.2021 to 30.06.2021 was 20 days, so the last date for issuing notice under the new regime was 01.07.2022. The order under Section 148A(d) was passed on 20.07.2022, beyond this surviving period. Held, the notice and all consequential proceedings are invalid and quashed. (Paras 3-10)
Issue of Consideration
Whether the reassessment notice under Section 148 of the Income Tax Act, 1961 for Assessment Year 2013-2014 was valid in view of the surviving time limit under the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 and the Supreme Court's directions in Union of India v. Ashish Agarwal and Union of India v. Rajeev Bansal.
Final Decision
The High Court quashed the order under Section 148A(d) dated 20.07.2022, the notice under Section 148 dated 21.07.2022, and all consequential reassessment proceedings as invalid and time-barred. The Court held that the notice was issued beyond the surviving time limit as mandated by the Supreme Court in Rajeev Bansal.
Law Points
- Reassessment notice under Section 148 must be issued within the surviving time limit computed from the date of the deemed notice under Section 148A(b) to 30.06.2021. Notices issued beyond the surviving period are invalid and liable to be quashed.
