Reassessment limitation under section 149(1): time spent on section 148A(b) adjournments can be excluded, validating the notice.

Section 149(1) was applied as a composite limitation framework for reassessment, and the fifth proviso was read to exclude the time or extended time allowed to the assessee under section 148A(b). Because proceedings under section 148A(b) began before the limitation period expired and the delay in completing the pre-notice process arose from the assessee's adjournment requests, the period from 28.03.2024 to 15.04.2024 was excluded. On that basis, the notice issued under section 148 was treated as within limitation and validly issued within jurisdiction.

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Issues: Whether the notice issued under section 148 of the Income-tax Act, 1961 for AY 2017-18 was barred by limitation and without jurisdiction in view of section 149(1), including the effect of the time spent in proceedings under section 148A(b) and adjournments sought by the assessee.

Analysis: The proceedings under section 148A(b) were initiated on 21.03.2024, before the limitation period expired on 31.03.2024. The assessee sought adjournments and filed its reply only on 13.04.2024, after which the Assessing Officer passed an order under section 148A(d) and issued the notice under section 148 on 15.04.2024. The Court read section 149(1) as a composite limitation framework and held that the fifth proviso requires exclusion of the time or extended time allowed to the assessee under section 148A(b). Since the delay in completing the pre-notice procedure resulted from the assessee's own requests for time, the period between 28.03.2024 and 15.04.2024 had to be excluded.

Conclusion: The notice under section 148 was not barred by limitation and was validly issued within jurisdiction.

Ratio Decidendi: Where reassessment proceedings are initiated within limitation and the assessee's own adjournments extend the time taken under section 148A(b), the excluded period under the proviso to section 149(1) applies and the subsequent notice under section 148 cannot be treated as time-barred.

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