Case Note & Summary
The petitioner, Chiragdineshbhai Ramavat, filed a writ petition before the Gujarat High Court challenging reassessment notices issued by the Income Tax Department under Section 148 of the Income Tax Act, 1961 (prior to 01.04.2021) and Section 148A(b) of the amended Act (effective from 01.04.2021) for Assessment Year 2015-2016. The core legal issue was whether these notices were time-barred under the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (TOLA). The petitioner relied on the Supreme Court's decision in Union of India v. Rajeev Bansal (2024 SCC OnLine SC 2693), where the Revenue conceded that all notices issued on or after 01.04.2021 must be dropped as they do not fall within the period prescribed under TOLA, and that under the amended provisions, notices could only be issued up to 31.03.2022. The Revenue's counsel did not dispute this legal position. Consequently, the High Court quashed all impugned notices and consequential proceedings, allowing the writ petition and making the rule absolute. The judgment was delivered by a Division Bench comprising Justice A.S. Supehia and Justice Pranav Trivedi on 20 March 2026.
Headnote
A) Income Tax - Reassessment - Time Bar - Section 148, 148A(b) Income Tax Act, 1961 - Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (TOLA) - The issue pertained to reassessment notices issued for Assessment Year 2015-2016 under Section 148 (prior to 01.04.2021) and Section 148A(b) (after 01.04.2021) of the Income Tax Act, 1961. The Revenue conceded before the Supreme Court in Union of India v. Rajeev Bansal that all notices issued on or after 01.04.2021 must be dropped as they fall outside the period prescribed under TOLA, and that under the new regime, notices could only be issued up to 31.03.2022. The High Court followed this position and quashed the impugned notices and all consequential proceedings. Held that the notices are time-barred and liable to be quashed (Paras 3-5).
Issue of Consideration
Whether reassessment notices issued under Section 148 (prior to 01.04.2021) and Section 148A(b) (after 01.04.2021) of the Income Tax Act, 1961, for Assessment Year 2015-2016, are time-barred under the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (TOLA).
Final Decision
The High Court quashed all impugned notices and consequential proceedings, allowed the writ petition, and made the rule absolute.
Law Points
- Reassessment notices under Section 148/148A(b) of Income Tax Act
- 1961 issued after 31.03.2022 are time-barred as per 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. Rajeev Bansal.
Case Details
2026 LawText (GUJ) (03) 1126
R/Special Civil Application No. 3924 of 2026
A.S. Supehia, Pranav Trivedi
Darshan R Patel for Petitioner, Maunil G Yajnik for Respondent
National E-Assessment Centre Assessment Unit & Anr.
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Nature of Litigation
Writ petition challenging reassessment notices under Income Tax Act.
Remedy Sought
Petitioner sought quashing of reassessment notices and consequential proceedings.
Filing Reason
Notices issued under Section 148 (prior to 01.04.2021) and Section 148A(b) (after 01.04.2021) for Assessment Year 2015-2016 were alleged to be time-barred under TOLA.
Previous Decisions
The Supreme Court in Union of India v. Rajeev Bansal held that notices issued on or after 01.04.2021 must be dropped as they fall outside the period prescribed under TOLA, and under the new regime, notices could only be issued up to 31.03.2022.
Issues
Whether reassessment notices under Section 148/148A(b) of the Income Tax Act, 1961 for Assessment Year 2015-2016 are time-barred under TOLA.
Submissions/Arguments
Petitioner argued that the notices are time-barred following the Supreme Court's decision in Rajeev Bansal.
Revenue conceded the legal position and did not dispute the applicability of Rajeev Bansal.
Ratio Decidendi
Reassessment notices under Section 148/148A(b) of the Income Tax Act, 1961 issued after 31.03.2022 are time-barred under the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020, as per the Supreme Court's decision in Union of India v. Rajeev Bansal.
Judgment Excerpts
It is demonstrated before us that the issue pertaining to the notices invoking section 148 (prior to 01.04.2021) and Section 148A(b) of the Amended Income Tax Act, 1961 by the Finance Act, 2021 with effect from 01.04.2021, came up for consideration before the Apex Court in case of Union of India and others Vs. Rajeev Bansal reported in 2024 SCC OnLine SC 2693.
For the Assessment Year 2015-2016, the Revenue conceded before the Apex Court that all the notices issued on or after 01.04.2021 will have to be dropped as they will not fall during the period prescribed under the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020.
We, therefore, quash all the notices, subject matter of challenge in the captioned writ petition and all consequential proceedings.
Procedural History
The petitioner filed a writ petition before the Gujarat High Court challenging reassessment notices. The matter was heard by a Division Bench, and the court disposed of the petition on 20 March 2026, following the Supreme Court's decision in Rajeev Bansal.
Acts & Sections
- Income Tax Act, 1961: Section 148, Section 148A(b)
- Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020:
