Limitation for reassessment notice: time-barred notice under section 148 cannot support a valid reassessment.

A reassessment notice issued under section 148 after expiry of the permissible limitation period for assessment year 2015-16 could not be sustained, because the substituted reassessment regime applied and TOLA did not extend time for that year. The Tribunal followed Supreme Court and Delhi High Court rulings on identical facts and held that the notice dated 26.07.2022 was time-barred, so the reassessment order based on it could not survive and was set aside in favour of the assessee.

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Issues: Whether the notice issued under section 148 of the Income-tax Act, 1961 dated 26.07.2022 for assessment year 2015-16 was barred by limitation and whether the reassessment completed on its basis was liable to be set aside.

Analysis: The notice was issued after the expiry of the normal limitation period applicable to assessment year 2015-16. In the light of the Supreme Court decision on the applicability of the substituted reassessment provisions and the exclusion of TOLA for such notices in this assessment year, the later notice could not be sustained. The Tribunal also followed the Delhi High Court decisions on identical facts, which had treated a notice of the same date for the same assessment year as time-barred.

Conclusion: The notice under section 148 dated 26.07.2022 was barred by limitation, and the reassessment order passed on its basis was liable to be set aside in favour of the assessee.

Ratio Decidendi: A reassessment notice issued after the expiry of the permissible limitation period, where TOLA does not extend time for that assessment year, is void and any assessment founded on it cannot survive.

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