May 2022
Reassessment — Notice u/s 148 — Validity: (i) New provisions inserted w.e.f 1st April, 2021 prescribing conditions for issue of notice for reassessment after that date — Provisions apply to all notices issued after that date for earlier periods — Notices for periods prior to 1st April, 2021 issued without compliance with conditions prescribed under new provision — Notices not valid; (ii) Limitation — Change of law — Explanations to notifications having effect of extending time limits prescribed under Act — Not valid; Notices quashed
By K. B. Bhujle
Advocate
13 Sudesh Taneja vs. ITO [2022] 442 ITR 289 (Raj) A. Y.: 2013-14
Date of order: 27th January, 2022 Ss. 147, 148, 148A and 151 of ITA 1961 and Notification Nos. 20 (S. O. No. 1432(E)) dated 31/03/2021 [1] and 38 (S. O. No. 1703(E)) dated 27-4-2021 [2]
Reassessment — Notice u/s 148 — Validity: (i) New provisions inserted w.e.f 1st April, 2021 prescribing conditions for issue of notice for reassessment after that date — Provisions apply to all notices issued after that date for earlier periods — Notices for periods prior to 1st April, 2021 issued without compliance with conditions prescribed under new provision — Notices not valid; (ii) Limitation — Change of law — Explanations to notifications having effect of extending time limits prescribed under Act — Not valid; Notices quashed
For the A.Y. 2013-14, notices u/s 148 of the Income-tax Act, 1961 were issued after 1st April, 2021 without following the mandatory procedure prescribed u/s 148A by the Finance Act, 2021. The validity of the notices was challenged by filing writ petitions in the Rajasthan High Court. It was also contended that the notices were barred by limitation.
The Rajasthan High Court quashed the notices and held as under:
“i) The substituted sections 147, 148, 149 and 151 of the Income-tax Act, 1961 pertaining to reopening of assessment u/s. 147 came into force on 1st April, 2021. The time limits for issuing notice for reassessment hav
