G. Veerabhadri Vs ITO (Karnataka High Court)
No Reassessment for 2015–16 If Notice Issued on or After 1st April 2021: Karnataka HC Follows Rajeev Bansal
Petitioner challenged reassessment proceedings initiated for AY 2015–16. The impugned actions included the notice u/s 148A(b) dated 29.03.2022, the order u/s 148A(d), the consequent reassessment order u/s 147 r.w.s. 144B, as well as subsequent penalty and demand notices. Petitioner argued that the reassessment was void in light of the Supreme Court’s ruling in Union of India v. Rajeev Bansal [2024] 167 taxmann.com 70 (SC).
The Supreme Court in Rajeev Bansal had recorded a concession by the Revenue that for AY 2015–16, any notices issued on or after 01.04.2021 would be invalid as they would not fall within the extended limitation provided under the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (TOLA). Since the notice in the present case was issued on 29.03.2022 for AY 2015–16, it was covered by this concession.
The Court held that the principle laid down in Rajeev Bansal squarely applied. Consequently, the notice, reassessment order, penalty orders, computation sheets, & all consequential demand notices were quashed. The writ petition was allowed, with a direction to grant consequential reliefs, including refund of amounts deposited by the petitioner during appeal.
