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September 2024

Reassessment — Change of law — Jurisdiction — Notice issued under existing law and reassessment order passed and becoming final — Issue of notice u/s. 148A pursuant to subsequent direction of Supreme Court in UOI vs. Ashish Agarwal — Without jurisdiction and therefore quashed

By Keshav Bhujle and Ritu Punjabi, Advocates
Reading Time 2 mins

Arvind Kumar Shivhare vs. UOI [2024] 464 ITR 396(All) A.Y.: 2017–18 Date of order: 4th April, 2024 Ss. 147, 148 and 148A of the ITA 1961

40. Reassessment — Change of law — Jurisdiction — Notice issued under existing law and reassessment order passed and becoming final — Issue of notice u/s. 148A pursuant to subsequent direction of Supreme Court in UOI vs. Ashish Agarwal — Without jurisdiction and therefore quashed.

The assessee was originally assessed to tax u/s. 143(3) of the Income-tax Act, 1961 for the A.Y. 2017–18, by an assessment order dated 29th May, 2019. Thereafter, the assessee received a reassessment notice dated 31st March, 2021 issued u/s. 148 of the Act. The assessee participated in the reassessment proceeding and a reassessment order dated 28th March, 2022 was passed by the Assessing Officer. The assessee did not challenge it, and it attained finality. A second reassessment notice for the A.Y. 2017–18 dated 30th July, 2022 was issued, invoking section 148A of the Act.

The assessee filed a writ petition and challenged the validity of notice u/s. 148A.

The counsel for the Revenue contended that since the reassessment notice dated 31st March, 2021 was digital

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