Old Cash Deposits? Tax Notice After 6 Years Quashed

A Mumbai tax tribunal cancelled a reassessment notice sent in 2022 for the year 2015-16, ruling it was sent too late. This means income tax notices have strict deadlines — and if the taxman misses them, you're protected.

Here's what happened: ITAT Mumbai quashed a Section 148 reassessment notice issued in April 2022 for Assessment Year 2015-16, ruling the notice was time-barred under the law.. The case involved cash deposits of approximately ₹80 lakh; the tribunal held that the taxman cannot reopen old assessments beyond the legally permitted time window.. The Supreme Court's Rajeev Bansal judgment set clear boundaries on how Covid-era deadline extensions apply to reassessment notices, limiting the department's reach into older tax years..

What you should do: Log in to incometax.gov.in and download your Annual Information Statement (AIS) — check what cash deposits, FD interest, or large transactions the department already has on record for past years.. If you receive any Section 148 reassessment notice, immediately verify the date of issue against the assessment year mentioned — notices beyond the legal time limit can be challenged and quashed.. Consult a chartered accountant before responding to any old reassessment notice; replying without checking the notice's legal validity can inadvertently waive your right to contest it..

Replying to a time-barred Section 148 notice without objecting to its validity is treated as acceptance — always raise a preliminary objection on limitation before addressing the merits of the demand.

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