Reopening Invalid as Notice Issued Beyond Six-Year Limitation Period: SC

ACIT Vs Mohd Athar Anjum (Supreme Court of India)

The case concerns the validity of a reassessment notice issued under Section 148 of the Income Tax Act, 1961 for Assessment Year 2016–17, along with related proceedings under Sections 148A(b) and 148A(d). The petitioner challenged the notice dated 31.03.2024 on the ground that it was issued beyond the permissible limitation period. The petitioner relied on prior judicial precedents, including a decision of the High Court and the judgment of the Supreme Court interpreting the proviso to Section 149(1)(b) of the Act.

Read Delhi HC Judgment in this case: Delhi HC Quashed Reopening Notice as Issued Beyond Six-Year Limitation

The legal issue revolved around whether a reassessment notice could be issued under the new regime when the limitation period prescribed under the old regime had already expired. The relevant Supreme Court interpretation clarified that no notice under Section 148 of the new regime can be issued for assessment years up to 2021–22 if the time limit under the old regime had already lapsed. Specifically, it was held that if the six-year limitation period from the end of the relevant assessment year had expired, reopening would be barred. The proviso to Section 149(1)(b) ensures that the extended ten-year limitation under the new regime applies only prospectively and does not revive time-barred cases.