Time-barred reassessment notice and defective sanction rendered the reassessment invalid and liable to be quashed.

A reassessment notice under the Income-tax Act was treated as time-barred because the extended limitation period had expired after applying the excluded period recognised by earlier Supreme Court directions. The text also notes that, after three years from the end of the relevant assessment year, approval had to be obtained from the higher specified authority, but approval was taken from a different authority. On these defects, the reassessment proceedings could not survive, and the notice and consequential reassessment order were held invalid and quashed.

---

---

Issues: Whether the reassessment notice issued under section 148 of the Income-tax Act, 1961 was barred by limitation and whether approval was obtained from the competent authority.

Analysis: The extended time limit for issuing notice under the reassessment regime had expired before the notice was issued. The period to be excluded in consequence of the legal fiction created in the earlier Supreme Court directions was applied, and on that basis the notice dated 29-07-2022 was held to be beyond limitation. It was also found that after expiry of three years from the end of the relevant assessment year, approval had to be taken from the higher specified authority, but approval was obtained from a different authority. In view of these defects, the reassessment proceedings could not stand.

Conclusion: The reassessment notice and consequential reassessment order were held invalid and were quashed, in favour of the assessee.

Final Conclusion: The reassessment was annulled for want of a valid and timely notice, and the Revenue's appeal failed as a consequence.

Ratio Decidendi: Where the reassessment notice is issued after the limitation period, and approval is not obtained from the statutorily competent authority, the reassessment is void and liable to be quashed.

---