Reassessment limitation under the new regime prevents a Section 148 notice where the old-time bar had already expired.

A reassessment notice for Assessment Year 2017-18 under the new regime was held unsustainable because the limitation protected by the first proviso to Section 149(1) had already expired under the old regime. The Delhi HC applied the settled position on the revised reassessment framework and accepted that a notice under Section 148 cannot be issued where the earlier time limit had lapsed. On that basis, the order under Section 148A(d) and the notice under Section 148 were set aside.

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Issues: Whether the order under Section 148A(d) of the Income-tax Act, 1961 and the notice under Section 148 of the Income-tax Act, 1961 for Assessment Year 2017-18 were liable to be set aside as being beyond the limitation prescribed under the first proviso to Section 149(1) of the Income-tax Act, 1961.

Analysis: The petition was filed against a reassessment order and notice issued for Assessment Year 2017-18. The Court noted the contention that the notice was barred by limitation under the first proviso to Section 149(1) and relied on the recent exposition of the law governing the new reassessment regime, including the requirement that a notice under Section 148 cannot be issued where the time limit under the old regime had already expired. On that basis, the Court accepted that the impugned action could not be sustained.

Conclusion: The impugned order under Section 148A(d) and the notice under Section 148 were set aside, and the petition was allowed.

Ratio Decidendi: A notice under the new reassessment regime cannot be sustained for an assessment year where the limitation protected by the first proviso to Section 149(1) had already expired under the old regime.

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