Reassessment notices issued beyond the surviving time limit under TOLA are time-barred and invalid.

The petitioner challenged a reassessment notice issued under Section 148 of the Income Tax Act, 1961 ("the Act") dated 29.06.2022 for the Assessment Year (AY) 2017-2018

Initially, the respondent issued a notice on 11.06.2021 during the extended time period provided by the Taxation and Other Laws (Relaxation of Certain Provisions) Act, 2020 (TOLA)

Following the Supreme Court's ruling in Ashish Agarwal, the original notice was treated as a show-cause notice under Section 148A(b)

The Assessing Officer provided necessary information to the petitioner on 18.05.2022, with the deadline for a reply falling on 02.06.2022

The Revenue passed an order under Section 148A(d) on 28.06.2022 and issued the impugned notice under Section 148 on 29.06.2022

Whether the notice dated 29.06.2022 issued under Section 148 was time-barred based on the principle of "surviving time" as defined by the Supreme Court

The court applied Sections 148 and 148A of the Income Tax Act, 1961, in conjunction with the Taxation and Other Laws (Relaxation of Certain Provisions) Act, 2020 (TOLA)

It relied on the Supreme Court precedents of Union of India v. Ashish Agarwal (2022) 444 ITR 1 (SC), which mandated the procedure for transitioning notices from the old regime to the new regime

Union of India v. Rajeev Bansal (2024) 469 ITR 46 (SC), which established the "surviving time" doctrine to determine the validity of reassessment notices

The court also followed its earlier decision in Dhanraj Govindram Kella v. Income Tax Officer (2025) regarding the calculation of limitation periods

The court evaluated the chronological facts against the "surviving time" framework established in Rajeev Bansal

This principle requires the Assessing Officer to issue the reassessment notice within the remaining limitation period that survived under the Act read with TOLA, after accounting for the period during which proceedings were deemed stayed under the Ashish Agarwal directions

For the relevant AY 2017-2018, the court calculated that the limitation for issuing the Section 148 notice expired on 21.06.2022

Since the respondent issued the impugned notice on 29.06.2022, it fell outside the permissible "surviving time"

The respondent’s counsel could not dispute the calculation or the specific dates

The court quashed and set aside the impugned notice and all consequential proceedings, including the order passed under Section 148A(d)

Rule was made absolute in favor of the petitioner