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TMI BlogReassessment Notices for AY 2013-14: Upholding the Doctrine of LimitationX X X X Extracts X X X X X X X X Extracts X X X X ..... ing the time limit for issuing such notices. Arguments Presented The petitioner challenged the reassessment notice issued on 28th July 2022 for AY 2013-14, contending that it was barred by limitation. The primary arguments advanced by the petitioner were as follows: The time limit for issuing a reassessment notice for AY 2013-14 under the erstwhile Section 149 of the Act had expired on 31st March 2020, and the extension granted by TOLA was not applicable to this case. The amended provisions of Section 149 , introduced by the Finance Act, 2021 , which came into effect on 1st April 2021, could not be circumvented by invoking the travel back in time theory propounded by the Central Board of Direct Taxes (CBDT) in its Instruction No. 1 of 2022 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Theory The Court firmly rejected the travel back in time theory propounded by the CBDT in its Instruction No. 1 of 2022 . It held that neither the Supreme Court's judgement in Ashish Agarwal nor the provisions of TOLA allowed for such a modality. The Court declared paragraphs 6.1 and 6.2(ii) of the Instruction as bad in law. Limitation Period for AY 2013-14 The Court observed that the limitation period for issuing a reassessment notice for AY 2013-14 under the erstwhile Section 149 had expired on 31st March 2020. Consequently, the Notification No. 20/2021 , issued under TOLA, did not apply to the present case as it covered only those cases where the time limit expired on 31st March 2021. The Court further held that even if the relate ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Summary The judgement comprehensively addresses the issue of the validity of reassessment notices issued for AY 2013-14 u/s 148 of the Income Tax Act, 1961 . The Court firmly rejected the travel back in time theory propounded by the CBDT and upheld the assessee's right to raise all defences available u/s 149 , including the limitation period. The Court meticulously analyzed the interplay between the amended provisions of Section 149 , introduced by the Finance Act, 2021 , and the applicability of TOLA in extending the time limit for issuing reassessment notices. It held that the reassessment notice issued on 28th July 2022 for AY 2013-14 was barred by limitation, as the time limit had expired on 31st March 2020 under the erstwhile prov ..... X X X X Extracts X X X X X X X X Extracts X X X X
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