Limitation for reassessment notices bars revival of a time-barred notice; assessment based on it lacks jurisdiction.

A reassessment notice under section 148 for AY 2015-16 was held time-barred because it was issued after the pre-amended limitation period had expired on 31.03.2022. The first proviso to section 149(1), as amended by the Finance Act, 2021 regime, barred issuance where such notice could not have been issued under the old limitation on the commencement date. The fifth and sixth provisos were held not to extend or revive a notice already barred under the first proviso. As a result, the notice was invalid and the assessment made on its basis was without valid jurisdiction.

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Issues: Whether the reassessment notice issued under section 148 of the Income-tax Act, 1961 for AY 2015-16 was barred by limitation under the first proviso to section 149(1), and whether the consequential assessment order could be sustained.

Analysis: The notice under section 148 was issued on 02.04.2022 for AY 2015-16, whereas, under the pre-amended limitation regime, it could have been issued only up to 31.03.2022. The amended first proviso to section 149(1) prohibited issuance of notice where, on the date of commencement of the Finance Act, 2021 regime, such notice could not have been issued under the old limitation. The period contemplated in the fifth and sixth provisos was held not to extend or revive a notice already barred under the first proviso. On that basis, the notice was treated as time-barred and the assessment made pursuant to it as without valid jurisdiction.

Conclusion: The reassessment notice was invalid and the assessment order based on it was quashed for want of valid assumption of jurisdiction.

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