ITAT Quashes Reassessment as Section 148 Notice Issued Beyond Limitation Period:

The assessee is Anish Thakore who had filed his return of income for AY 2019-20 declaring total income of Rs 3,74,180. Subsequently, proceedings under Section 148A were initiated in relation to a donation of Rs 53,000 claimed as a deduction. A notice under Section 148A(b) was issued on 29/03/2023, granting the assessee time until 17/04/2023 to submit his response. Thereafter, an order under Section 148A(d) was passed and a notice under Section 148 was issued on 20/04/2023.

The reassessment was ultimately completed on 17/03/2025 under Section 147 read with Section 144B, determining the assessee’s total income at Rs 4,27,180 after disallowing the Rs 53,000 deduction. The assessee contended that the reassessment proceedings were invalid as the notice under Section 148 had been issued beyond the permissible limitation period.

The Tribunal observed that the assessment year involved was AY 2019-20 and the alleged escaped income was only Rs 53,000. The Tribunal examined the limitation period and noted that, even after taking into account the period available to the assessee for responding to the notice under Section 148A(b), the limitation stood extended only up to 19/04/2023.

Since the notice under Section 148 was issued on 20/04/2023, i.e. after the expiry of the permissible period, the Tribunal held that the notice was barred by limitation and invalid in law. Consequently, the reassessment order dated 17/03/2025 passed under Section 147 read with Section 144B was annulled. The Tribunal accordingly allowed the assessee’s appeal.