Time-barred reassessment notice under section 148 cannot be revived after the statutory limitation under section 149 expires.

Notice under section 148 for Assessment Year 2015-16 was held time-barred because it was issued on 07.04.2022, after the six-year outer limit under the pre-amended section 149(1) had expired on 31.03.2022. The exclusion of time under the provisos to section 149(1) could not revive a notice already beyond the statutory limit for that assessment year. On that basis, the reassessment proceedings founded on the invalid notice were held unsustainable and quashed in favour of the assessee.

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Issues: Whether the notice issued under section 148 for Assessment Year 2015-16 was barred by limitation and whether the reassessment proceedings based on such notice could be sustained.

Analysis: The relevant assessment year was 2015-16, and the notice under section 148 was issued on 07.04.2022 after the expiry of six years from the end of the assessment year. The applicable limitation under the pre-amended section 149(1) had expired on 31.03.2022. The exclusion of time under the provisos to section 149(1) could not revive a notice that had already crossed the outer limit prescribed for the relevant assessment year. Following the binding judicial view applied on identical facts, the notice and the consequential reassessment were held to be unsustainable.

Conclusion: The notice under section 148 was held to be time-barred, and the reassessment proceedings founded on that notice were quashed. The issue was decided in favour of the assessee.

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