Reassessment limitation under the Income-tax Act bars reopening for past years once the six-year period has expired.

Reassessment under the amended Finance Act, 2021 framework is barred where, at the time of issuance, the six-year limitation under the pre-amendment regime had already expired for the relevant assessment year. Applying the proviso to section 149(1)(b) and the principle in Union of India v. Rajeev Bansal, notices for past assessment years on or before 1 April 2021 cannot be sustained once the old limitation period has run out. For AY 2016-17, the six-year period had expired before the impugned notice dated 10.04.2023, so the order under section 148A(d) and the notice under section 148 were time-barred and quashed.

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Issues: Whether the order passed under Section 148A(d) and the notice issued under Section 148 of the Income-tax Act, 1961 for the assessment year 2016-17 are barred by limitation and therefore liable to be quashed.

Analysis: The applicable legal framework includes the amended time-limits for reassessment under the Finance Act, 2021 and the proviso to Section 149(1)(b) of the Income-tax Act, 1961 which preserves the old six-year limitation for past assessment years. The decisive principle established by the Apex Court in Union of India v. Rajeev Bansal is that notices under the amended provisions cannot be issued for assessment years on or before 1 April 2021 if the time limit under the old regime (six years from the end of the relevant assessment year) has already expired at the time of issuance; consequently, the shorter retrospective limits operate subject to the proviso. Applying these principles to the present facts, the financial year end for AY 2016-17 elapsed on 31.03.2017 and the six-year period would have expired before the impugned notice dated 10.04.2023 was issued; therefore the notice and the antecedent order under Section 148A(d) are time-barred.

Conclusion: The impugned order under Section 148A(d) dated 10.04.2023 and the notice under Section 148 dated 10.04.2023 for assessment year 2016-17 are quashed; relief is in favour of the assessee.

Ratio Decidendi: A reassessment order or notice under the post-amendment regime cannot be issued for past assessment years if, at the time of issuance, the six-year limitation prescribed under the pre-amendment provision (first proviso to Section 149(1)(b) of the Income-tax Act, 1961) has already expired; such limitation bars reopening and mandates quashment of time-barred orders and notices.

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