Time-barred reassessment notice challenge stays operation pending further proceedings under the Income-tax reassessment regime

A reassessment notice under Section 148 for Assessment Year 2012-13 was challenged as time-barred, with reliance placed on the first proviso to Section 149(1) and Section 153A(1)(b) read with Explanation 1 after a prior assessment under Section 143(3) and a search under Section 132. Pending counter-affidavit and rejoinder, the HC granted interim protection and stayed operation of the impugned notice until further orders.

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Issues: Whether the reassessment notice issued under Section 148 of the Income-tax Act, 1961 for Assessment Year 2012-13 was time-barred and whether interim protection should be granted pending further consideration.

Analysis: The writ petition concerned Assessment Year 2012-13. The record noted an assessment under Section 143(3), a search action under Section 132, and a notice dated 13.03.2023 under Section 148. The petitioner challenged the notice as barred by limitation and relied on the first proviso to Section 149(1) as well as Section 153A(1)(b) and Explanation 1 thereto. Notice was issued and the respondent accepted notice. Pending filing of counter-affidavit and rejoinder, the Court granted interim protection against operation of the impugned notice.

Outcome: Notice issued and operation of the impugned reassessment notice stayed till further orders.

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