Reassessment notices issued after 31 March 2021 had to follow the substituted procedure; old-regime notices were invalid.

Reassessment notices issued after 31 March 2021 had to comply with the substituted Sections 147 to 151 of the Income-tax Act introduced by the Finance Act, 2021 from 1 April 2021. The extended time allowed by relaxation legislation could not revive or continue the earlier reassessment procedure beyond that date, because notifications may extend limitation periods but cannot override the statutory replacement enacted by Parliament. The saving provision under the General Clauses Act was held inapplicable where a fresh legislative framework had superseded the old one on the same subject. Explanations in the notifications that attempted to sustain notices under the earlier regime were therefore beyond delegated power and void.

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Issues: Whether reassessment notices issued after 31 March 2021 under Section 148 of the Income-tax Act, 1961, without complying with the substituted Sections 147 to 151 effective from 1 April 2021, were valid and whether the explanations in the notifications dated 31 March 2021 and 27 April 2021 were ultra vires the parent statute.

Analysis: The substituted reassessment scheme introduced by the Finance Act, 2021 with effect from 1 April 2021 governed notices issued thereafter. The extended time permitted by the relaxation legislation did not authorise the Executive to continue applying the erstwhile procedure beyond 31 March 2021 or to postpone the operation of the substituted provisions. The notifications could extend time limits, but they could not displace the statutory change brought about by Parliament. The saving provision under the General Clauses Act was held inapplicable because the old procedure had been replaced by a fresh legislative framework on the same subject. The explanations that attempted to sustain notices issued under the old regime were therefore beyond delegated power and inconsistent with the amended law.

Conclusion: The reassessment notices issued under Section 148 after 31 March 2021 without following the substituted procedure were invalid, and the explanations in the notifications were ultra vires and void.

Ratio Decidendi: Where Parliament substitutes the reassessment procedure with effect from a specified date, notices issued thereafter must comply with the substituted provisions, and executive notifications cannot extend the life of the superseded procedure or override the legislative mandate.

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