The High Court held that the reassessment notice issued beyond ...

Reassessment notice issued beyond limitation period invalid, rendering assessment order void.

Case Laws     Income Tax

September 4, 2024

The High Court held that the reassessment notice issued beyond the period of limitation was invalid and without jurisdiction. The impugned notice itself was illegal, and there was no foundation for an assessment order based on a time-barred notice u/s 148. The assessment order passed u/s 148A(d) was also barred by limitation as per the first proviso to Section 149. The inherent illegality of the time-barred notice u/s 148 percolated into the assessment order, rendering it an incurable defect. The Assessing Officer proceeded without jurisdiction, possibly applying the amended provisions of Section 149 erroneously. An order that is void ab initio cannot be saved, and acquiescence to an illegal order cannot render it legal. The Court allowed the assessee's appeal, holding that giving effect to an illegal and void order cannot be permitted.

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