Reassessment limitation under the old regime: a post-expiry section 148 notice could not confer jurisdiction.

A notice under section 148 issued on 07.04.2022 for assessment year 2015-16 was analysed against the unamended six-year limitation period, which expired on 31.03.2022. The commentary applies the transition principle from the old reassessment regime to the amended regime and states that, for assessment years up to 2021-22, a post-amendment notice is valid only if the earlier limitation period had not already expired on the date of issue. As the notice was issued after expiry of the prescribed period, it was treated as incapable of conferring jurisdiction to reopen the assessment, rendering the reassessment proceedings without jurisdiction and the notice time-barred.

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Issues: Whether the notice issued under section 148 of the Income-tax Act, 1961 for assessment year 2015-16 was barred by limitation and consequently whether the reassessment proceedings were without jurisdiction.

Analysis: The notice under section 148 was issued on 07.04.2022 for assessment year 2015-16. The relevant six-year period under the unamended limitation provision expired on 31.03.2022. The Court relied on the binding principles governing the transition from the old reassessment regime to the amended regime and held that for assessment years up to 2021-22, the validity of a post-amendment notice depends on whether the old limitation period had already expired on the date of issuance. Since the notice was issued after expiry of the prescribed period, it could not confer jurisdiction to reopen the assessment.

Conclusion: The notice under section 148 was time-barred and invalid, the reassessment proceedings were without jurisdiction, and the assessment order was quashed in favour of the assessee.

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