[Cites 10, Cited by 0]
Gujarat High Court
Vishal Pravinchandra Sonawala vs Income Tax Officer ,Ward 1(2)(6) - Surat on 27 January, 2026
Author: A.S. Supehia
Bench: A.S. Supehia
NEUTRAL CITATION
C/SCA/767/2026 ORDER DATED: 27/01/2026
undefined
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/SPECIAL CIVIL APPLICATION NO. 767 of 2026
==========================================================
VISHAL PRAVINCHANDRA SONAWALA
Versus
INCOME TAX OFFICER ,WARD 1(2)(6) - SURAT & ANR.
==========================================================
Appearance:
MR. HARDIK V VORA(7123) for the Petitioner(s) No. 1
KARAN G SANGHANI(7945) for the Respondent(s) No. 1
==========================================================
CORAM:HONOURABLE MR. JUSTICE A.S. SUPEHIA
and
HONOURABLE MR. JUSTICE PRANAV TRIVEDI
Date : 27/01/2026
ORAL ORDER
(PER : HONOURABLE MR. JUSTICE A.S. SUPEHIA)
1. Heard learned advocate Mr. Hardik Vora for
the petitioner and learned Senior Standing
Counsel Mr. Karan Sanghani for the
respondent.
2. This petition is filed under Article 226 of
the Constitution of India challenging the
notice under section 148 of the Income Tax
Act, 1961 (For short "the Act") dated
30.07.2022 on the ground that the notice
would be invalid and time barred.
NEUTRAL CITATION
C/SCA/767/2026 ORDER DATED: 27/01/2026
undefined
3. Brief facts of the case are that the
respondent Assessing Officer issued notice
dated 29.06.2021 under section 148 of the Act
for the Assessment Year 2014-2015 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 reported in (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 reported in (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
NEUTRAL CITATION
C/SCA/767/2026 ORDER DATED: 27/01/2026
undefined
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 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
NEUTRAL CITATION
C/SCA/767/2026 ORDER DATED: 27/01/2026
undefined
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 (supra) would be valid notice
or not in view of the decision of the
NEUTRAL CITATION
C/SCA/767/2026 ORDER DATED: 27/01/2026
undefined
Hon'ble Apex Court in case of Rajeev
Bansal (supra):
SCA NO AY Date of No of days Date of
notice under of surviving providing
section 148 time information
under TOLA available under
till section
30.06.2021 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 Date of Date of Last date for issuance
of filing reply:- order of notice under
reply under section 148 as per
section surviving time:-
148A(d)
and 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,
NEUTRAL CITATION
C/SCA/767/2026 ORDER DATED: 27/01/2026
undefined
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 provided information
pursuant to the directions issued by the
Hon'ble Apex Court in case of Ashish Agarwal
(supra) on 30.05.2022 and therefore,
considering 15 days' time to file reply by
the assessee, the due date would be
13.06.2022. The petitioner filed reply on
10.06.2022. The order under section 148A(d)
of the Act as well as notice under section
148 of the Act was issued on 30.07.2022.
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
NEUTRAL CITATION
C/SCA/767/2026 ORDER DATED: 27/01/2026
undefined
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 20.06.2022.
8. Learned Senior Standing Counsel Mr. Karan
Sanghani has verified the above dates and
could not controvert the same.
9. In view of above, the impugned notice dated
30.07.2022 issued under section 148 of the
Act would be invalid notice as the said
notice is issued after 20.06.2022 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
judgment:
"114. In view of the above discussion, we
NEUTRAL CITATION
C/SCA/767/2026 ORDER DATED: 27/01/2026
undefined
conclude that:
xxx
(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 30.07.2022 is hereby quashed and set
aside and all consequential proceedings are
also quashed and set aside.
(A. S. SUPEHIA, J)
(PRANAV TRIVEDI,J)
BIMAL /26
