S. 148: Reassessment – Notice-Constitutional validity – The delegation authorized being only for the purpose of enlarging limitation under a valid law, such delegation could not be exercised to resurrect the provision of law that stood omitted from the statute book by virtue of its substitution made by the Finance Act, 2021, w.e.f. 01.04.2021 – Reassessment notices issued under section 148 of the Act are quashed-It is left open to the assessing authority to initiate – re-assessment proceedings in accordance with the provisions of the Act, as amended by the Finance Act, 2021 after making due compliance as required under the law. [S. 147, 148A, 149, 151, 151A, 153, 292 Relaxation of Certain Provisions) Act, 2020 (TOLA), S. 3(1) of the Act 38 of 2020, Art. 226]

The Hon’ble Delhi High Court deciding the issue of validity of Notices issued under section 148 of the Income-tax Act, 1961 on or after April 01, 2021, held the Explanations A(a)(ii)/A(b) to the Notifications dated 31st March, 2021 and 27th April, 2021 which extended the period of issuance of Notices beyond March 31, 2021 are declared to be ultra vires the TOLA and are therefore the Notices issued under section 148 of the Act on or after April 01, 2021 are bad in law, and null and void. The revenue is permitted to take further steps as per law.

Followed Ashok Kumar Agarwal & Ors. v. UOI (All.)(HC), Bpip Infra Pvt. Ltd. and Ors. vs. ACIT and Ors; and dissented from Palak Khatuja Vs Union of India & Ors.

Coram: Manmohan J. and Navin Chawla J.

Mon Mohan Kohli v. ACIT & Anr WP(C) 6176 of 2021 dated October 30, 2021 (Delhi)(HC)