The Assessing Officer issued a reassessment notice under Section 148 in 2022 for AY 2013-14, applying the amended provisions of Section 149 introduced by the Finance Act, 2022. However, under the pre-amended Section 149(1)(b) (which applied to AY 2013-14), the limitation period of six years had already expired on 31 March 2020, and was only extended until 31 March 2021 by COVID-related notifications. The reassessment notice was issued much later, beyond this extended period.

The Bombay High Court held that the amended provisions of Section 149 (as given in the Finance Act, 2022) could not be applied retrospectively to AY 2013-14. Hence, the AO lacked jurisdiction, and the entire reassessment proceedings, including the notice and consequential assessment order, were held to be void ab initio.(AY. 2013-14)