Reassessment for AY 2014-15 u/s147: whether s.149(1)(b) limitation barred notice after 31.03.2021; quashed.

The dominant issue was whether reassessment proceedings under s.147 could be initiated for AY 2014-15 after expiry of the permissible period under the post-2021 limitation regime in s.149(1)(b) and its proviso, including where alleged escaped income was ?50 lakh or more. The HC held that the six-year period from the end of AY 2014-15 expired on 31.03.2021; a notice issued thereafter was time-barred, and the proviso could not revive a lapsed limitation. Consequently, the impugned reassessment notice was quashed and relief granted to the assessee.

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Issues: Whether the notice issued under Section 148 of the Income-tax Act, 1961 (along with the preceding Section 148A(b) notice and the order under Section 148A(d)) for assessment year 2014-15 is barred by limitation and thus liable to be set aside.

Analysis: The legal framework requires assessment reopening under Section 148 to respect the time-limits preserved by Section 149(1)(b) of the Act; where the earlier six-year period from the end of the relevant assessment year has expired prior to issuance of a Section 148 notice, the notice is time-barred. For assessment year 2014-15, the six-year period expired on 31.03.2021. The impugned Section 148 notice was issued after that date. The related procedural steps under Section 148A(b) and the order under Section 148A(d) preceding the notice do not cure the substantive defect of issuance beyond the preserved limitation period.

Conclusion: The notice under Section 148 (and the related Section 148A(b)/148A(d) steps) for AY 2014-15 is barred by limitation and is set aside; decision is in favour of the assessee.

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