Limitation for reopening assessments defeats a section 148 notice issued after expiry of the old six-year period.

For an assessment year governed by the pre-01.04.2021 limitation regime, a notice under section 148 cannot be sustained if the six-year period had already expired on the date of issue. The Tribunal admitted the jurisdictional challenge as a pure question of law on the existing record and held that the later amended limitation structure could not revive a time-barred notice. Although the section 148A(b) show-cause notice was issued within time, the section 148 notice itself was beyond limitation and was quashed. The reassessment order consequently could not survive, and the remaining grounds became infructuous.

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Issues: Whether the notice issued under section 148 of the Income-tax Act, 1961 for the relevant assessment year was barred by limitation and liable to be quashed, and whether the consequent reassessment could survive.

Analysis: The additional ground challenging jurisdiction was admitted as it raised a pure question of law capable of being decided on the existing record. The Tribunal held that, for an assessment year beginning on or before 01.04.2021, the validity of a notice under section 148 has to be tested with reference to the limitation that had already expired under the unamended regime. It found that the show-cause notice under section 148A(b) was issued within time, but the notice under section 148 was issued after the expiry of the relevant six-year period. Following the binding jurisdictional precedent, the Tribunal rejected the Revenue's reliance on the amended limitation structure to save the notice.

Conclusion: The notice under section 148 was barred by limitation and was quashed. The reassessment order consequently could not survive.

Final Conclusion: The assessee succeeded on the jurisdictional challenge, and the remaining grounds became infructuous once the reopening was held invalid.

Ratio Decidendi: For an assessment year covered by the old limitation regime, a reassessment notice under section 148 cannot be sustained if, on the date of issuance, the six-year period had already expired; the amended regime does not revive a time-barred notice.

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