Reassessment Notice Issued Beyond Six Year Limitation Under Amended Section 149

The Visakhapatnam Bench of the Income Tax Appellate Tribunal allowed the assessee’s appeal and quashed reassessment proceedings initiated under Sections 148A and 148 of the Income-tax Act, 1961 on the ground of limitation. 

The Tribunal held that for assessment years prior to 01.04.2021, reassessment notices issued after expiry of six years from the end of the relevant assessment year are barred by the first proviso to Section 149(1), notwithstanding the extended ten-year period introduced by the Finance Act, 2021. 

The ruling significantly reinforces the growing judicial consensus that the amended reassessment regime cannot retrospectively revive time-barred assessments for earlier assessment years.