Reopening notice beyond three years failed for want of jurisdiction where escaped income did not meet the statutory threshold.

A reopening notice issued beyond three years from the end of the relevant assessment year is without jurisdiction unless the escaped income meets the monetary threshold under the amended reopening scheme. Because the income recorded in the reassessment proceedings was below the prescribed limit, the Assessing Officer lacked authority to issue notice under section 148, and the reassessment based on that notice could not stand. The reassessment was therefore annulled on limitation and jurisdictional grounds, and the Revenue's challenge failed.

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Issues: Whether the notice issued under section 148 of the Income-tax Act, 1961 for reopening the assessment was valid where the relevant assessment year had expired beyond three years and the escaped income was below the statutory threshold.

Analysis: The reassessment was initiated after the expiry of three years from the end of the relevant assessment year. The escaped income recorded in the reopening and assessment proceedings was below Rs. 50 lakhs. On the amended scheme of reopening, section 149(1)(b) permits notice beyond three years only where the escaped income represented in the relevant form reaches the prescribed threshold. Since that condition was not satisfied, the Assessing Officer lacked jurisdiction to issue the notice under section 148. The subsequent reassessment, being founded on an invalid notice, could not survive.

Conclusion: The reopening notice was invalid and the challenge to jurisdiction succeeded in favour of the assessee.

Final Conclusion: The reassessment was annulled on limitation and jurisdictional grounds, and the Revenue's appeal failed.

Ratio Decidendi: A notice for reopening issued beyond three years from the end of the relevant assessment year is without jurisdiction unless the escaped income satisfies the statutory monetary threshold prescribed under section 149(1)(b) of the Income-tax Act, 1961.

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