Reassessment notice under Section 148 quashed where the Supreme Court's relaxation-period ruling governed the proceedings.

A reassessment notice issued under Section 148 for assessment year 2013-14 was found unsustainable because it fell within the relaxation period governed by the Supreme Court's ruling in Union of India v. Ashish Agarwal. The High Court treated that decision as fully governing the notice and the consequential reassessment proceedings, and followed its earlier view in a similar matter. On that basis, the impugned notice and all proceedings and orders flowing from it were quashed in favour of the assessee.

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Issues: Whether the notice issued under Section 148 of the Income-tax Act, 1961 for assessment year 2013-14 could survive in view of the law declared in relation to reassessment notices issued during the relevant relaxation period.

Analysis: The notice was issued on 30 March 2021 for assessment year 2013-14. The Court treated the decision of the Supreme Court in Union of India v. Ashish Agarwal as a complete answer and followed its earlier order in a similar matter. On that basis, the impugned notice and the proceedings and orders consequential to it were held unsustainable.

Conclusion: The reassessment notice and all consequential proceedings were quashed in favour of the assessee.

Ratio Decidendi: A reassessment notice issued under Section 148 of the Income-tax Act, 1961 during the relevant relaxation period cannot be sustained where the governing law declared by the Supreme Court applies and the consequent proceedings are covered by that ruling.

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