Chennai ITAT Applies ‘Surviving Period’ Rule for First Time, quashes Income Tax Reassessment Notice

The Chennai ITAT has, for the first time, applied the "surviving period rule" to quash an Income Tax reassessment notice. This significant ruling provides a new ground for challenging reassessment proceedings. The "surviving period rule" refers to situations where, despite an extended period being available, the reassessment notice is issued so close to the extended deadline that the assessee has insufficient time to respond or for the assessment to be completed within the remaining statutory period. The ITAT’s decision highlights the need for tax authorities to act judiciously and not issue notices vexatiously close to the limitation expiry, ensuring fair opportunity for the assessee.