Reassessment notice served after 01.04.2021 must follow amended section 148A procedure; non-compliance invalidates reassessment.

A reassessment notice dated 31.03.2021 but served on 01.04.2021 had to be tested under the amended reassessment regime, because service after commencement triggered sections 148A and 148 of the Income-tax Act, 1961. The statutory sequence of examining information, giving the taxpayer an opportunity to object, and passing a speaking order under section 148A(d) before issuing a notice under section 148 was mandatory. As that procedure was not followed, the reassessment was treated as contrary to the amended law and invalid, and the addition did not survive.

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Issues: Whether the reassessment notice dated 31.03.2021, served on 01.04.2021, required compliance with the amended reassessment regime under sections 148A and 148 of the Income-tax Act, 1961, and whether the reassessment order could survive without following that procedure.

Analysis: The notice was found to have been served on 01.04.2021, as reflected in the email record and the Assessing Officer's own order disposing of objections. Since the service date fell on or after the commencement of the amended reassessment provisions, the notice had to be treated in substance as a show-cause notice under section 148A(b). The statutory procedure requiring consideration of information, opportunity to object, and a speaking order under section 148A(d) before issuance of a notice under section 148 was not followed. In those circumstances, the reassessment proceeding was held to be contrary to the amended law and unsustainable.

Conclusion: The reassessment notice and the consequent reassessment order were held invalid, and the addition was not sustained. The Revenue's appeal failed.

Ratio Decidendi: Where a notice dated before 01.04.2021 is actually served on or after 01.04.2021, the reassessment must proceed under the amended sections 148A and 148 of the Income-tax Act, 1961, and non-compliance with that mandatory procedure vitiates the reassessment.

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