The Calcutta High Court has set aside a notice issued under Section 148 of the Income Tax Act, 1961, along with the subsequent assessment order, holding that both were barred by limitation.
The bench of Justice Aryak Dutt granted relief to the assessee after considering the Supreme Court’s judgment in Union of India v. Rajeev Bansal. The Income Tax Department also acknowledged that the petitioner’s case appeared to be covered by that decision.
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The company approached the High Court challenging a notice dated August 31, 2024, issued under Section 148 in relation to the year 2015–16. Its principal objection was that the notice had been issued after the applicable limitation period had expired.
During the pendency of the writ petition, the tax authorities passed an assessment order on March 30, 2026. The petitioner brought this development to the Court’s attention and submitted that the subsequent assessment was also time barred.
The dispute therefore concerned the validity of both the reopening notice and the assessment that followed it.
Appearing for the petitioner, senior advocate Abhratosh Mazumdar relied on the Supreme Court’s ruling in Union of India v. Rajeev Bansal.
The petitioner specifically referred to paragraph 19 of that judgment. As recorded in the High Court’s order, the petitioner submitted that the judgment stated that TOLA was not applicable for 2015–16 and that the last date for issuing a notice under Section 148 was March 31, 2021.
Against that deadline, the impugned notice had been issued on August 31, 2024—more than three years later.
The petitioner further argued that the assessment order dated March 30, 2026, passed after the writ petition had been filed, was also beyond limitation.
Counsel appearing for the Income Tax Department submitted that, on a reading of the Rajeev Bansal judgment, the petitioner’s case appeared to be covered by the Supreme Court’s ruling.
This submission supported the petitioner’s contention that the reopening proceedings could not survive the limitation objection.
High Court Quashes Notice and Assessment Order
Taking account of the submissions and the Supreme Court precedent relied upon, Justice Aryak Dutt set aside both the Section 148 notice dated August 31, 2024, and the subsequent assessment order dated March 30, 2026, as time barred.
The Court disposed of the writ petition without any order as to costs.
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