September 2023
Reassessment — Notice under section 148 — Limitation — Law applicable — Effect of amendments made by Finance Act, 2021 — Notice bared by limitation under unamended provisions — Notice issued on 30th June, 2021 to reopen assessment for A.Y. 2014–15 — Not valid.
39. Sunny Rashikbhai Laheri vs. ITO
[2023] 455 ITR 35 (Guj):
A.Y. 2014–15: Date of order: 21st March, 2023
Sections 148, 148A and 149 of ITA 1961.
Reassessment — Notice under section 148 — Limitation — Law applicable — Effect of amendments made by Finance Act, 2021 — Notice bared by limitation under unamended provisions — Notice issued on 30th June, 2021 to reopen assessment for A.Y. 2014–15 — Not valid.
For the A.Y. 2014–15, a notice under section 148 (unamended) of the Income-tax Act, 1961 was originally issued on 30th June, 2021. The said notice was treated as show-cause notice under section 148A(b) of the Act in the light of the decision of the Supreme Court in Union of India vs. Ashish Agarwal [2022] 444 ITR 1 (SC); and thereupon, the order under section 148A(d) was passed on 21st July, 2022. Consequential notice under section 148, dated 21st July, 2022 was also issued.
The assessee filed writ petition and challenged the order under section 148A(d), dated 21st July, 2022 and the notices under section 148. The Gujarat High Court allowed the writ petition and held as under:
“i) By the Finance Act, 2021, passed on March 28, 2021, and made applicable with effect from 1st April, 2021, section 148A of the Income-tax Act, 1961, was brought into force. It relates to conducting of inquiry and providing opportunity to
