No Income Tax Reassessment Notice u/s 148 May be Issued after Statutory Limitation: Rajasthan HC refers SC Decision in Rajeev Bansal [Read Order]
The Revenue had issued notices for reassessment in 2022 for the financials of the Assessment Year 2015-16
![No Income Tax Reassessment Notice u/s 148 May be Issued after Statutory Limitation: Rajasthan HC refers SC Decision in Rajeev Bansal [Read Order]](https://www.taxscan.in/wp-content/uploads/2025/03/No-Income-Tax-Reassessment-Notice-Statutory-Limitation-Rajasthan-HC-SC-Decision-Rajeev-Bansal-taxscan.jpg "No Income Tax Reassessment Notice u/s 148 May be Issued after Statutory Limitation: Rajasthan HC refers SC Decision in Rajeev Bansal [Read Order]")
The Rajasthan High Court recently ruled referred to the Supreme Court decision in Union of India & ors. Vs. Rajeev Bansal (2024) to hold that reassessment notice under Section 148 of the Income Tax Act, 1961 cannot be issued beyond the permissible statutory limitation period. Read More: Income Tax Joint Commissioner cannot grant Reassessment Approvals relying on Rajeev Bansal SC...
The Rajasthan High Court recently ruled referred to the Supreme Court decision in Union of India & ors. Vs. Rajeev Bansal (2024) to hold that reassessment notice under Section 148 of the Income Tax Act, 1961 cannot be issued beyond the permissible statutory limitation period.
The decision was given by the Rajasthan High Court in a Civil Writ Petition filed by Late Shri Rafiq Ahmed Querashi through his legal heir Shri Shafiq Ahmed against the Respondents Central Board of Direct Taxes (CBDT) and the Income Tax Officer, Ward 5(2), Jaipur in light of a Notice issued under Section 148 of the Income Tax Act, 1961 seeking to conduct reassessment on the Petitioner’s financials for the Assessment Year (A.Y.) 2015-16.
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The Petitioner had filed their income tax returns for A.Y. 2015-16 declaring an income of ₹5,69,630 against which a Notice for reopening was issued under Section 148 of the Income Tax Act, 1961 on 12 April, 2021. The notice was disputed by the Petitioner in light of the Supreme Court decision in Union of India & Ors. Vs. Ashish Agarwal (2023) following which a renewed notice was issued on 26 May, 2022.
Siddharth Ranka and Rohan Chatter appearing for the Petitioner challenged the notice on the grounds that the limitation for conducting reopening of A.Y. 2015-16 had expired on March 31, 2022 itself.
They contended that in Rajeev Bansal, the Supreme Court had specifically held that reassessment proceedings for time-barred assessment years could not survive, and the Income Tax Department had itself conceded before the apex court that proceedings for such years should be dropped.
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The Revenue, represented by advocates Mr. Sandeep Pathak and Mr. Palash Gupta, argued that there were additional issues in the case apart from limitation. However, they could not distinguish the present case from the ruling in Rajeev Bansal.
A Division Bench of Justice Avneesh Jhingan and Justice Shubha Mehta laid reference to the precedential nature of the Supreme Court decision in Rajeev Bansal to hold that the reassessment for A.Y. 2015-16 proposed in the present case could not be sustained due to time-limitation and proceeded to allow the writ petition holding that the impugned notices are liable to be quashed.
To Read the full text of the Order CLICK HERE
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