Reassessment limitation under TOLA: notice issued after the extended period expired was treated as time barred and invalid.

The reassessment notice was found to be barred by limitation because it was issued after the ordinary six-year period and beyond the extended time available under TOLA as applied in light of the Supreme Court's interpretation of the substituted reassessment regime. The Tribunal noted that the relaxation under section 3(1) of TOLA extends the limitation only to the extent recognised by the Supreme Court, and notices issued after the surviving period remain time barred. As the notice dated 29/07/2022 was issued after the extended limitation had expired on 30/06/2021, it was treated as invalid and set aside, making consideration of the merits unnecessary.

---

---

Issues: Whether the reassessment notice issued for the relevant assessment year was barred by limitation in view of the extended time limit under TOLA and the law declared by the Supreme Court.

Analysis: The reassessment notice was issued after the ordinary six-year period. The Tribunal applied the Supreme Court's exposition on the substituted reassessment regime and the operation of TOLA, including the position that the relaxation under section 3(1) of TOLA extends the time limit only to the extent recognised by the Supreme Court and that notices issued beyond the surviving period are time barred. On the facts, the notice dated 29/07/2022 was issued after the extended limitation had already expired on 30/06/2021. As the notice itself was invalid, examination of the merits of the addition was unnecessary.

Conclusion: The reassessment notice was held to be time barred and was set aside, which resulted in the assessee succeeding on the limitation issue.

---