Limitation for reassessment notices under section 148 cannot revive time-barred cases under the unamended regime.

For assessment years beginning on or before 01.04.2021, a notice under section 148 cannot be sustained under the amended reassessment regime if the reopening was already time-barred under the unamended section 149 when the new law took effect. Applying the first proviso to section 149(1), the notice issued on 06.04.2022 for assessment year 2015-16 was beyond the then-applicable limitation, which expired on 31.03.2022. The reassessment framed under sections 147 and 144 was therefore unsustainable and was set aside as invalid in law.

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Issues: Whether the notice issued under section 148 of the Income-tax Act, 1961 dated 06.04.2022 for assessment year 2015-16 was barred by limitation and whether the consequent reassessment order was liable to be quashed.

Analysis: The relevant assessment year began before 01.04.2021. The Court applied the first proviso to section 149(1) of the Income-tax Act, 1961 and held that the new regime could not revive a case in which notice under the unamended law was already time-barred. For assessment year 2015-16, the pre-amendment period for issuance of notice had expired on 31.03.2022. Since the notice was issued on 06.04.2022, it was beyond limitation. The reassessment framed under sections 147 and 144 was therefore unsustainable.

Conclusion: The notice under section 148 was held to be barred by limitation and the reassessment order was quashed in favour of the assessee.

Final Conclusion: The appeal succeeded and the reassessment proceedings were set aside as invalid in law.

Ratio Decidendi: For assessment years beginning on or before 01.04.2021, a notice under section 148 cannot be issued under the amended regime if the reopening was already time-barred under the unamended section 149 on the date the new law came into force; the extended ten-year limit operates prospectively.

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