Reassessment limitation under TOLA barred a section 148 notice for assessment year 2015-16, leading to quashing of reopening.

A notice under section 148 for assessment year 2015-16 was challenged as time-barred in light of the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020. The Tribunal held that the notice issued on 29.07.2022 was beyond the period available for reopening, and applied the binding view that TOLA relief was not available for that assessment year from 01.04.2021 onwards. On that basis, the reassessment could not be sustained within any extended period, and the reopening was quashed in favour of the assessee.

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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 in view of the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020.

Analysis: The notice under section 148 was issued on 29.07.2022, well beyond the period available for reopening the assessment. The Tribunal applied the binding view that the relaxation under TOLA was not available for assessment year 2015-16 from 01.04.2021 onwards, and followed the authorities cited on the point to hold that the reassessment could not be sustained within the extended period.

Conclusion: The reopening of assessment was barred by limitation and was quashed in favour of the assessee.

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