Gujarat High Court
Dahyabhai Narayandas Patel Huf By Its ... vs Income Tax Officer, Ward 3(3)(1) Or His ... on 25 November, 2025
Author: A.S. Supehia
Bench: A.S. Supehia
NEUTRAL CITATION
C/SCA/2035/2023 JUDGMENT DATED: 25/11/2025
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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/SPECIAL CIVIL APPLICATION NO. 2035 of 2023
FOR APPROVAL AND SIGNATURE:
HONOURABLE MR. JUSTICE A.S. SUPEHIA
and
HONOURABLE MR. JUSTICE PRANAV TRIVEDI
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Approved for Reporting Yes No
√
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DAHYABHAI NARAYANDAS PATEL HUF BY ITS KARTA DAHYABHAI N
PATEL
Versus
INCOME TAX OFFICER, WARD 3(3)(1) OR HIS SUCCESSOR
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Appearance:
MR SN DIVATIA(1378) for the Petitioner(s) No. 1
AADITYA D BHATT(8580) for the Respondent(s) No. 1
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CORAM:HONOURABLE MR. JUSTICE A.S. SUPEHIA
and
HONOURABLE MR. JUSTICE PRANAV TRIVEDI
Date : 25/11/2025
ORAL JUDGMENT
(PER : HONOURABLE MR. JUSTICE A.S. SUPEHIA)
1. Heard learned Advocate Mr. S.N.Divatia for the petitioner and
learned advocate Mr.Aaditya Bhatt for the respondent.
2. Rule returnable forthwith. Mr.Aaditya Bhatt, learned advocate,
waives service of notice of rule on behalf of the respondent. This
petition is filed under Article 226 of the Constitution of India
challenging the notice under section 148 of the Income Tax Act, 1961
NEUTRAL CITATION
C/SCA/2035/2023 JUDGMENT DATED: 25/11/2025
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(For short "the Act") dated 28.08.2022 on the ground that the notice
would be invalid and time barred.
3. Brief facts of the case are that the respondent Assessing
Officer issued notice dated 22.04.2021 under section 148 of the Act
for the Assessment Year 2017-2018 during the extended time period
as per Taxation and Other Laws (Relaxation of Certain Provisions)
Ordinance, 2020 [(2020) 422 ITR (St.) 116] (For short "TOLA").
4. In view of the decision of Hon'ble Apex Court in case of Union
of India and others v. Ashish Agarwal (2022) 444 ITR 1 (SC), the
aforesaid notice was to be treated as notice under section 148A(b) of
the Act which has come into statute with effect from 01.04.2021.
5. The Hon'ble Apex Court in case of Union of India v. Rajeev
Bansal (2024) 469 ITR 46 (SC) has laid down the law to consider
such notice as valid notice or invalid notice depending upon the
surviving time left between the date of issuance of notice under
section 148 of the Act read with section 3(1) of TOLA upto
30.06.2021 and the issuance of notice under section 148 pursuant to
the directions issued by the Hon'ble Apex Court in case of Ashish
Agarwal (supra).
6. This Court in case of Dhanraj Govindram Kella v. Income Tax
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C/SCA/2035/2023 JUDGMENT DATED: 25/11/2025
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Officer, Ward(2), Surendranagar (Judgment dated 08.07.2025
rendered in Special Civil Application No.6387 of 2023 and allied
matters) has considered in detail the submissions made by both the
sides and has held as under:
"65. The alternative contention of the petitioner as to
whether notices would be valid notice or invalid notice
considering 'surviving time' between the date of the
issuance of notices under TOLA and 30th June, 2021 or not is
required to be considered and for that each matter has to be
considered separately on the basis of the facts of case
considering the date of issuance of notices under section
148 under TOLA by the Revenue and thereafter date of
supplying information to the assessee and date of passing of
order under section 148A(d) and date of issuance of notice
under section 148 of the Act so as to consider whether
issuance of notice under section 148 of the Act is within
'surviving time' as per the direction of Hon'ble Apex Court
in case of Rajeev Bansal (supra) or not.
66. So far as Assessment Years 2013-2014 and 2014-2015
are concerned, the period of three years from the end of the
assessment year would be over prior to 20.03.2020 and the
period of six years would be over between 20.03.2020 and
30.06.2021. Therefore, the notices issued under section 148
of the Act under old regime between 01.04.2021 and
30.06.2021 as per TOLA, will be a valid notice if the notice
under section 148 of the Act under new regime is issued
within the period of 'surviving time' as per the directions
issued by Hon'ble Apex Court in case of Rajeev Bansal
(supra). For the Assessment Years 2016-2017 and 2017-
2018 are concerned, the notice issued under section 148 of
the Act under old regime between 01.04.2021 and
30.06.2021 under TOLA would be considered to be issued
within three years from the end of the relevant assessment
year as three years would complete within the period of
20.03.2020 and 30.06.2021.
67. Therefore, in facts of these petitions, following data is
required to be considered to find out 'surviving time' to
decide as to whether the impugned notices under section
148 of the Act issued under the new regime as per the
decision of Hon'ble Apex Court in case of Ashish Agarwal
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C/SCA/2035/2023 JUDGMENT DATED: 25/11/2025
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(supra) would be valid notice or not in view of the decision
of the Hon'ble Apex Court in case of Rajeev Bansal (supra):
SCA NO AY Date of notice under No of days of Date of
section 148 under surviving time providing
TOLA available till information
30.06.2021 under section
148A(b)
6387/2023 2013-2014 17.06.2021 13 26.05.2022
5688/2023 2014-2015 09.06.2021 21 23.05.2022
22260/2022 2016-2017 30.06.2021 1 23.05.2022
996/2023 2017-2018 30.06.2021 1 24.05.2022
SCA NO Due date of Date of Date of order Last date for issuance of notice
filing reply reply:- under section under section 148 as per
148A(d) and surviving time:-
notice under
section 148:-
6387/2023 09.06.2022 04.06.2022 29.07.2022 22.06.2022
5688/2023 06.06.2022 - 27.07.2022 27.06.2022
22260/2022 07.06.2022 06.07.2022 30.07.2022 14.06.2022
996/2023 11.06.2022 10.06.2022 19.07.2022 18.06.2022
68. It is apparent from the above details that impugned
notice under section 148 of the Act is issued beyond the
period of 'surviving time' as per the direction of
Hon'ble Apex Court in case of Rajeev Bansal
(supra)and therefore, such notices would be invalid
notices.
69.The impugned notices issued under section 148 of
the Act are accordingly quashed and set aside being
invalid having been issued beyond the 'surviving time'.
Accordingly, impugned orders passed under section
148A(d) of the Act would also not survive and are
accordingly, quashed and set aside. Subsequent
proceedings, if any, undertaken by the respondent
would not survive and are also quashed and set aside.
70. Rule is made absolute to the aforesaid extent. No
order as to costs."
7. In the facts of the case, the respondent Assessing Officer has
NEUTRAL CITATION
C/SCA/2035/2023 JUDGMENT DATED: 25/11/2025
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provided information pursuant to the directions issued by the
Hon'ble Apex Court in case of Ashish Agarwal (supra) on 27.05.2022
and therefore, considering 15 days' time to file reply by the assessee,
the due date would be 27.06.2022. The petitioner filed reply on
14.06.2022. The order under section 148A(d) of the Act as well as
notice under section 148 of the Act was issued on 28.08.2022.
However, considering the period of limitation from the date of
issuance of notice under section 148 read with TOLA upto
30.06.2021, the limitation for issuance of notice under section 148 of
the Act applying the decision of Hon'ble Apex Court in case of
Ashish Agarwal (supra) as well as Rajeev Bansal (supra), would
be 11.07.2022.
8. Learned advocate Mr.Aaditya Bhatt for the respondent has
verified the above dates and could not controvert the same.
9. In view of above, the impugned notice dated 28.08.2022 issued
under section 148 of the Act would be invalid notice as the said
notice is issued after 22.08.2022 as per the decision of Hon'ble Apex
Court in case of Ashish Agarwal (supra). Therefore, the impugned
notice having been issued beyond the 'surviving time' would be
invalid notice as held by the Hon'ble Apex Court in case of Rajeev
Bansal (supra) in the following paragraph no. 114 (g) and (h) of the
NEUTRAL CITATION
C/SCA/2035/2023 JUDGMENT DATED: 25/11/2025
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judgment:
"114. In view of the above discussion, we conclude that:
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(g) The time during which the show-cause notices were
deemed to be stayed is from the date of issuance of the
deemed notice between April 1, 2021 and June 30, 2021
till the supply of relevant information and material by
the Assessing Officers to the assessees in terms of the
directions issued by this court in Union of India v.
Ashish Agarwal [(2022) 444 ITR 1 (SC); (2023) 1 SCC
617.] , and the period of two weeks allowed to the
assessees to respond to the show-cause notices; and
(h) The Assessing Officers were required to issue the
reassessment notice under section 148 of the new
regime within the time limit surviving under the Income-
tax Act read with the Taxation and other Laws
(Relaxation and Amendment of Certain Provisions) Act,
2020. All notices issued beyond the surviving period are
time barred and liable to be set aside ."
10. In view of foregoing reasons, impugned notice dated
28.08.2022 is hereby quashed and set aside and all consequential
proceedings i.e. order passed under Section 147 read with Section
144B of the Act on 29.05.2023 and penalty notices dated 29.05.2023
are also quashed and set aside. Rule is made absolute to the
aforesaid extent.
(A. S. SUPEHIA, J)
(PRANAV TRIVEDI,J)
BIMAL/4
