Reassessment limitation under the first proviso to section 149 invalidates notices already barred under the earlier regime.

The first proviso to section 149(1) bars reassessment notices under the amended regime where the notice had already become time-barred under the pre-Finance Act, 2021 limitation period. For Assessment Year 2015-16, the earlier six-year period expired on 31 March 2022; therefore, a notice issued under section 148 on 4 April 2022 was invalid. The exclusion provisions relating to proceedings under section 148A do not extend this statutory limitation. The article notes that the reassessment proceedings and consequential assessment were quashed.

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Issues: Whether the notice issued for reassessment for Assessment Year 2015-16 after expiry of the limitation preserved by the first proviso to section 149(1) was valid.

Analysis: The notice under section 148 was issued on 04.04.2022. Under the pre-Finance Act, 2021 regime, the six-year period for issuing a reassessment notice for Assessment Year 2015-16 expired on 31.03.2022. The first proviso to section 149(1) prevents issuance under the amended regime where the notice was already time-barred under the earlier regime. The exclusion provisions concerning proceedings under section 148A do not extend this statutory restriction. The delay of 360 days in filing the appeal was also condoned on sufficient cause arising from the assessee's medical condition and personal circumstances.

Conclusion: The notice issued under section 148 on 04.04.2022 was barred by limitation and invalid; the reassessment proceedings and consequential assessment were quashed.

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