SC Dismisses Revenue SLP in Time-Barred Reopening Case:

In Mohd Athar Anjum v. Assistant Commissioner of Income Tax, the petitioner challenged a reassessment notice dated 31.03.2024 issued under Section 148, along with the order under Section 148A(d) and the final assessment order dated 15.03.2025 for AY 2016–17. The petitioner contended that the notice was barred by limitation, relying on the Supreme Court ruling in Union of India v. Rajeev Bansal. It was argued that under the old reassessment regime, the six-year limitation period from the end of AY 2016-17 expired on 31.03.2023, making the notice issued in March 2024 invalid.

Issue Before Court: Whether a reassessment notice issued under Section 148 after expiry of the statutory limitation period is legally sustainable ?

Supreme Court Held: The High Court allowed the writ petition and quashed the reassessment notice as well as the consequential assessment order. The Court held that the notice issued on 31.03.2024 was clearly time-barred, as the six-year limitation period had already expired on 31.03.2023. Notably, the revenue also conceded this position before the court.

The Supreme Court, while hearing the special leave petition filed by the revenue, condoned the delay but refused to interfere with the High Court's judgement. The bench of Hon’ble Justice J.B. Pardiwala and Hon’ble Justice Vijay Bishnoi found no reason to disturb the findings, thereby affirming that reassessment proceedings initiated beyond the permissible time limit are unsustainable in law.

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