Late Shri Rafiq Ahmed Querashi Vs Central Board Of Direct Taxes (Rajasthan High Court)
Rajasthan High Court in the case of Late Shri Rafiq Ahmed Querashi Vs Central Board of Direct Taxes addressed a petition challenging the validity of reassessment proceedings initiated under Section 148 of the Income Tax Act, 1961. The petitioner contended that the reassessment notice issued for the assessment year (AY) 2015-16 on July 28, 2022, was time-barred as per the amendments introduced by the Finance Act, 2021. The petition sought to quash the notice under Section 148 and the related order under Section 148A(d) of the Act.
The case hinged on the compliance with procedural requirements following the Supreme Court’s decision in Union of India & Ors. Vs. Ashish Agarwal (2023 1 SCC 617), where notices issued under the unamended Section 148 were deemed to have been issued under the amended provisions. It was mandated that Assessing Officers must provide material and information to the assessee within thirty days under Section 148A(b). Although the procedural requirements were complied with, the petitioner argued that the reassessment notice was issued after the limitation period for AY 2015-16 had expired on March 31, 2022.
The petitioner relied on the Supreme Court’s ruling in Union of India & Ors. Vs. Rajeev Bansal (2024 469 ITR 46), where the Court held that reassessment proceedings for AYs barred by limitation could not be pursued. The petitioner emphasized that the same principle should apply in the present case as the reassessment notice for AY 2015-16 was issued nearly four months after the limitation period. The respondents failed to distinguish the present case from the Rajeev Bansal ruling, which further bolstered the petitioner’s argument.
