S. 147 : Reassessment-Validity of notices issued under old regime after 01.04.2021-Limitation and sanction under new regime- Considering the surviving time available-limitation under S.149 had expired or sanction under S.151 of appropriate authority was lacking, the reassessment notices were invalid. [S. 148, 148A, 149, 151, Art. 226]
The assessee challenged notices issued u/s 148 (old regime) during April-June 2021 and subsequent notices/orders u/s. 148A(d) / 148 (new regime) for AYs 2013-14 to 2017-18 on grounds of limitation u/s 149(1)(b) and absence of proper sanction u/s 151. The Court noted that by Finance Act, 2021, new procedure u/ss. 147-151 was introduced w.e.f. 01.04.2021. Pursuant to UOI v. Ashish Agarwal (2022) 444 ITR 1 (SC), such notices issued under the old regime were treated as deemed notices under the new regime. Later, in UOI v. Rajeev Bansal (2024) 469 ITR 46 (SC), the Apex Court clarified that reassessment after 01.04.2021 must strictly comply with the new regime and limitation/sanction requirements thereunder. Applying the ratio of Rajeev Bansal, the High Court held that where limitation under S.149 had expired or sanction under S.151 of appropriate authority was lacking, the reassessment notices were invalid considering the surviving time available. Accordingly, the batch of petitions was disposed of following the Supreme Court’s directions.(AY. 2013-14, 2014-15, 2016-17, 2017-18) (SCA Nos. 6387/2023, 5688/2023, 22260/2022 & 996/2023 dt. 08.07.2025
Dhanraj Govindram Kella v. ITO (Guj.)(HC) www.itatonline.org.
[Coram : Honourable Mr. Justice Bhargav D. Karia and Honourable Mr. Justice Pranav Trivedi]