Sachin Panchal Vs DCIT (Rajasthan High Court)
The Rajasthan High Court considered a petition filed by an individual assessee challenging a reassessment notice issued under Section 148 of the Income Tax Act, 1961 for Assessment Year (AY) 2015-16. The petitioner contended that the notice dated 28.08.2024 was time barred, as the statutory period for reassessment had expired on 31.03.2022, six years from the end of the relevant assessment year. Counsel for the petitioner relied on the Supreme Court decision in Union of India v. Rajeev Bansal (2025), arguing that the extension under the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (TOLA) did not apply retrospectively. It was further submitted that the alleged escaped income attributable to the petitioner amounted to only Rs.44,29,225.78, below the Rs.50 lakh threshold required to invoke the ten-year limitation period for reassessment.
The Revenue opposed the petition, contending that the petitioner’s territorial jurisdiction lay in Delhi, not Jaipur, and that the writ petition filed on 11.09.2025 suffered from delay and latches. On merits, it was argued that a challenge to a Section 148 notice at the stage of issuance was premature, as the notice merely initiates proceedings which, if concluded, would be appealable. The Revenue also submitted that the reassessment notice was valid under Section 149 of the Act, as amended, which prescribes timelines for reopening assessments in cases prior to 01.04.2021 according to the unamended Act, and further under Section 153C read with Section 153A in cases of income escaping assessment.
