The notice issued under section 148 was issued for AY 2016-17 on 30 June 2021 and for AY 2017-18 was issued on 28 June 2021. There after, pursuant to the judgment of UOI vs Ashish Agrawal (2022) (444 ITR 1) (SC) order under section 148A(d) was passed. On appeal to the Hon’ble Delhi High Court, it was held that as per the new 148 provision, the time to complete the reassessment proceedings for income which is less than 50 lakhs should be within 3 years from the relevant assessment year. In the instant case the re-assessment proceedings were time-barred as limitation period of three years for the relevant assessment year since the notice issued for post June 2021. Hence, the orders issued under Section 148A(d) and the notice under Section 148 of the amended 1961 Act, for AY 2016-17 and AY 2017-18 are not valid.(AY. 20016-17, 2017-18)
Ganesh Dass Khanna v. ITO (2023) 156 taxmann.com417/ 335 CTR 881 / (2024) 460 ITR 546 (Delhi)(HC)
S. 148A : Reassessment-Conducting inquiry, providing opportunity before issue of notice-Limitation-Notice issued after three years-Barred by limitation-Travel back in time theory unsustainable-That the principle of constructive res judicata was not applicable. The orders passed under section 148A(d) and the consequent notices issued for the assessment years 2016-17 and 2017-18 under the amended provisions of section 148 of the 1961 Act were unsustainable. [S. 148, 148A(b) 148A(d),149, Art. 142, 226]