Notices issued for reassessment under the Income Tax Act must adhere to statutory time limits; those issued beyond the time limit are considered invalid.

ORDER :

S.R. KRISHNA KUMAR, J.

In this petition, petitioner seeks for the following reliefs:-

“(a) Quashing the instruction bearing No.1/2022 (F.No.279/Misc/M-51/2022-ITJ) dated 11.05.2022 issued by the 3^rd Respondent (Annexure-G), to the extent questioned herein;

(b) Quashing the order dated 29.07.2022 bearing No.ITBA/COM/F/17/2022-23/1044301602(1) (Annexure- K) passed by the 1^st Respondent under Section 148A(d) of the Act, rejecting the Petitioner’s objection as to the initiation of the reassessment proceedings for the assessment year 2016-17;

(c) Quashing the notice dated 29.07.2022 issued by the 1^st Respondent (Annexure-L) under Section 148 of the Act for the assessment year 2016-17; and

(d) Pass such other or further orders as this Hon’ble Court may deem fir in the facts and circumstances of the case, in the interest of justice and equity.”

2. Heard learned counsel for the petitioner and learned counsel for the respondents and perused the material on record.

3. A perusal of the material on record will indicate that in relation to the assessment year 2016-17, the respondent No.1 issued a notice dated 29.06.2021 under Section 148 of the Income Tax Act, prior to the said provisions being amended w.e.f., 01.04.2021. Subsequently, in the case of Union of India vs. Ashish Agarwal – [2022] 138 taxmann.com 64 (SC), the Apex Court while dealing with the aforesaid amendment and notices issued to the assessee under subsequent to the amendment, issued the following directions:

“10. In view of the above and for the reasons stated above, the present Appeals are ALLOWED IN PART. The impugned common judgments and orders passed by the High Court of Judicature at Allahabad in W.T. No. 524/2021 and other allied tax appeals/petitions, is/are hereby modified and substituted as under:

(i) The impugned section 148 notices issued to the respective assessees which were issued under unamended section 148 of the IT Act, which were the subject matter of writ petitions before the various respective High Courts shall be deemed to have been issued under section 148A of the IT Act as substituted by the Finance Act, 2021 and construed or treated to be showcause notices in terms of section 148A(b). The assessing officer shall, within thirty days from today provide to the respective assessees information and material relied upon by the Revenue, so that the assesees can reply to the showcause notices within two weeks thereafter;

(ii) The requirement of conducting any enquiry, if required, with the prior approval of specified authority under section 148A(a) is hereby dispensed with as a onetime measure visàvis those notices which have been issued under section 148 of the unamended Act from 01.04.2021 till date, including those which have been quashed by the High Courts. Even otherwise as observed hereinabove holding any enquiry with the prior approval of specified authority is not mandatory but it is for the concerned Assessing Officers to hold any enquiry, if required;

(iii) The assessing officers shall thereafter pass orders in terms of section 148A(d) in respect of each of the concerned assessees; Thereafter after following the procedure as required under section 148A may issue notice under section 148 (as substituted);

(iv) All defences which may be available to the assesses including those available under section 149 of the IT Act and all rights and contentions which may be available to the concerned assessees and Revenue under the Finance Act, 2021 and in law shall continue to be available.”

4. In pursuance of aforesaid directions issued by the Apex Court, PAN INDIA which applied to the petitioner and the notice dated 29.06.2021 also, which was