Mohmedmunaf Noormohmed Cambaywala Vs ITO (Gujarat High Court)
Summary: The Gujarat High Court allowed the writ petition filed by Mohmedmunaf Noormohmed Cambaywala and quashed the notices issued under Section 148 of the Income Tax Act, 1961, along with the subsequent proceedings and reassessment order.
The petition arose from reassessment proceedings initiated by the Income Tax Department by invoking the pre-01.04.2021 provisions of Section 148 of the Income Tax Act. Subsequently, notices were issued under Section 148A(b) of the amended Act, which came into force with effect from 01.04.2021. An order under Section 147 read with Sections 250 and 144B was thereafter passed on 21.03.2026.
Before the Gujarat High Court, it was demonstrated that the issue concerning notices issued under Section 148 prior to 01.04.2021 and notices under Section 148A(b) under the amended reassessment regime had been considered by the Supreme Court in Union of India & Ors. Vs Rajeev Bansal, reported in 2024 SCC OnLine SC 2693.
The judgment records that, in relation to Assessment Year 2015-2016, the Revenue had conceded before the Supreme Court that all notices issued on or after 01.04.2021 would have to be dropped because they would not fall within the period prescribed under the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (TOLA). The Revenue’s submission before the Supreme Court was that, under the amended provisions including Section 148A(b), notices could have been issued only up to 31.03.2022 and that notices issued thereafter under the new regime were also time-barred.
