Reassessment notices under Section 148 are quashed following

Reassessment notices under Section 148 are quashed following Supreme Court precedent in Deepak Steel.

Issue

Whether the reassessment notices issued to the assessee under Section 148 dated 09.04.2021 and 27.07.2022 for Assessment Year 2015-16 are legally sustainable and valid.

Facts

Assessment Year: The matter pertains to Assessment Year 2015-16.
Issuance of Notices: The Revenue issued reassessment notices under Section 148 of the Income-tax Act, 1961 on 09.04.2021 and subsequently on 27.07.2022.
Writ Challenge: The assessee filed a writ petition directly challenging the validity and legality of these reassessment notices.
Supreme Court Benchmark: The issue raised in the writ petition was directly governed by the law laid down by the Hon’ble Supreme Court in Deepak Steel & Power Ltd. v. CBDT 476 ITR 369 (SC).

Decision

Relief to Assessee: Following the binding ruling of the Supreme Court in Deepak Steel & Power Ltd., the court held that the impugned reassessment notices could not be sustained.
Notices Quashed: The reassessment notices dated 09.04.2021 and 27.07.2022 issued under Section 148 were quashed in favor of the assessee.

Key Takeaways

Binding Precedent: Reassessment proceedings initiated under Section 148 / 148A must strictly conform to the principles and directions laid down by the Supreme Court in Deepak Steel & Power Ltd.
Invalid Reopening: Notices issued contrary to settled Supreme Court rulings on reassessment timelines and procedure are liable to be quashed at the threshold via writ jurisdiction.

HIGH COURT OF PUNJAB & HARYANA

Tirath Ram Surinder Paul

Income-tax Officer

Deepak Sibal and Sunish Bindlish, JJ.

CWP-2643-2023 (O & M)
[Assessment year 2015-16]

SEPTEMBER 9, 2026

Nikhil Goyal, Adv. for the Petitioner. Ranvijay Singh, Senior Standing Counsel and Vidul Kapoor, Junior Standing Counsel for the Respondent.

ORDER

Deepak Sibal, J.- Through this petition, the petitioner challenges notices dated 09.04.2021 and 27.07.2022 pertaining to the assessment year 2015-16 issued to the petitioner by the respondents-revenue under Section 148 of the Income-tax Act, 1961.

2. At the outset, learned counsel for the petitioner submits that the petitioner’s case is fully covered in its favour by the following observations made by the Supreme Court on 02.04.2025 passed in Civil Appeal No. 5177 of 2025 (arising out of SLP (C) No.5632/2023)-Deepak Steel and Power Ltd. v. CBDT 476 ITR 369 (SC): –

“4. The learned counsel appearing for the revenue with his usual fairness invited the attention of this Court to a three judge bench decision of this Court in Union of India and Ors. v. Rajeev Bansal, reported in 2024 SCC OnLine SC 2693, more particularly, paragraph 19(f) which reads thus: –

“19. (f) The Revenue concedes that for the assessment year 2015-2016, all notices issued on or after April 1, 2021 will have to be dropped as they will not fall for completion during the period prescribed under the Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020.”

5. As the revenue made a concession in the aforesaid decision that is for the assessment year 2015-2016, all notices issued on or after 1^st April, 2021 will have to be dropped as they would not fall for completion during the period prescribed under the taxation and other laws (Relaxation and Amendment of certain Provisions Act, 2020). Nothing further is required to be adjudicated in this matter as the notices so far as the present litigation is concerned is dated 25.6.2021.”

3. Learned counsel for the respondent(s)-revenue very fairly concedes that the petitioner’s case would be covered in its favour by the afore quoted observations of the Supreme Court in Deepak Steel and Power Limited’s case (supra).

4. In the light of the above fair stand taken by learned counsel for the respondent(s)-revenue and in terms of the afore quoted observations by the Supreme Court in Deepak Steel and Power Limited’s case (supra), we allow the present petition resulting in the quashing of the impugned notices dated 09.04.2021 and 27.07.2022.

5. No costs.

6. Pending miscellaneous application(s), if any, also stand disposed of.

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