AMISH AGARWAL,DELHI vs. ITO WARD 8(1), DELHI

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ITA 4974/DEL/2026Status: DisposedITAT Delhi10 September 2026AY 2014-153 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the notice issued under Section 148 on July 29, 2022, was time-barred, following the Supreme Court's decision in UOI vs. Rajeev Bansal. Consequently, the reassessment proceedings were quashed.

What were the facts?

The assessee's appeal concerns the assessment year 2014-15. The Assessing Officer issued a notice under Section 148 of the Income Tax Act on July 29, 2022. The assessee contended that this notice was issued beyond the prescribed limitation period.

What were the issues?

The key legal issue was whether the notice issued under Section 148 of the Income Tax Act was within the limitation period prescribed by law, considering the amendments and the Supreme Court's ruling.

Which sections of the Income-tax Act were involved?

Section 147,Section 144,Section 148,Section 148A,Section 149,Section 151

AI-generated summary — verify with the full judgment below

IN THE INCOME TAX APPELATE TRIBUNAL DELHI BENCH “A”: NEW DELHI BEFORE SHRI MAHAVIR SINGH, HON’BLE VICE PRESIDENT AND SHRI M. BALAGANESH, HON’BLE ACCOUNTANT MEMBER

ITA NO. 4974/DEL/2026 A.Y. : 2014-15 AMISH AGGARWAL, Vs. ITO, WARD 8(1), N-39, GROUND FLOOR, C.R. BUILDING, GREATER KAILASH-I, NEW DELHI -2 NEW DELHI – 110 048 [PAN: AAFPA1811Q) (Appellant) (Respondent) Assessee by : Sh. Gurjeet Singh, CA. Department by : Sh. BalkishanGopal, Sr. DR Date of Hearing 03.09.2026 Date of Pronouncement 10.09.2026 O R D E R PER MAHAVIR SINGH, VP: This appeal by the assessee is emanating from the order of the Ld. National Faceless Appeal Centre (NFAC), Delhi dated 10.3.2026. Assessment was framed vide order dated 24.5.2023 u/s 147 r.w.s. 144 of the Income Tax Act, 1961 (hereinafter referred as “Act”) relevant to assessment year 2014-15. 2. Heard both the parties. Case file perused.

3.

The assessee has raised the legal ground in appeal that the notice issued u/s 148 of the Act is barred by limitation. This goes to root the matter and hence, is taken up first for adjudication.

4.

Before us, Ld. AR for the assessee has raised the legal issue and stated that Assessing Officer issued notice u/s. 148 on 25.6.2021 under the old regime and because of the legal fiction, the deemed show cause notice u/s. 148A also came into effect on 25.6.2021. After accounting for all the exclusions, the Assessing Officer has 6 days (25.6.2021 to 30.6.2021) to issue notice u/s. 148 as per the new regime. This time starts ticking for the Assessing Officer after receiving the response of the assessee. In this case, the assessee submitted the response on 14.6.2022. Accordingly, the Assessing Officer then had 6 days from 14.6.2022 to issue a reassessment notice u/s. 148 of the new regime. Thus the time limit for issuance of a notice u/s. 148 of the new regime ended on 20.6.2022 whereas the Assessing Officer issued notice u/s. 148 on dated 29.7.2022, hence, being beyond the limitation period laid down by the Hon’ble Supreme Court of India in the case of UOI vs. Rajeev Bansal. In this regard he has submitted the facts in a tabulation form as under : S.No. 1. Assessment year 2014-15 2. Period of limitation u/s. 149 (3 years or 6 6 years years) 3. Original period of limitation 31.03.2021 4. Extended period of limitation as per IT act 30.06.2021 read with TOLA 5. Sanction to be obtained u/s. 151 till 30.6.2021 PCIT (within 6 years) 6. Date of original notice u/s. 148 – deemed SCN 25.06.2021 u/s. 148A(b) 7. Time surviving from date of issuance of 6 days deemed SCN till expiry of period as extended by TOLA (from 25.06.201 till 30.6.2021) Period of deemed stay to be excluded as per 3rd 8. 25.06.2021 provisio to section 149 (Date of original 148 to till date of filing of reply by assessee) 14.6.2022 9. Last date for issuing notice u/s. 148 (i.e. 20.06.2022 14.6.2022 + 6 days) 10. Actual date of issuance of notice u/s. 148 29.07.2022 Notice u/s. 148 issued under new regime is beyond time limit prescribed. 5. Thus, he prayed for quashing of the notice u/s. 148 and consequent reassessment proceedings. 2

6.

The Ld. DR relied upon the orders of the lower authorities. 7. We have heard the rival contentions and perused the records. In view of the observation of the Hon’ble Supreme Court in the case of Rajeev Bansal (Supra) the extended due date for issuance of notice u/s 148 of the Act expired on 20-06-2022 and since, the notice u/s 148 of the Act is issued on 29-07-2022 the said notice is to be treated as time barred by limitation and consequentially reassessment proceedings would be liable to be quashed as void ab initio. Respectfully following the decision of the Hon’ble Supreme Court in the case of Rajeev Bansal (Supra), we hold that the notice issued u/s 148 of the Act on 29-07-2022 is time barred by limitation, thus, the same is quashed and accordingly consequent reassessment is also quashed. We hold and direct accordingly. 8. Since we have decided the legal ground in favour of the assessee, the other grounds have become academic. 9. In the result the appeal of the assessee is allowed. Order pronounced in the Open Court on 10.09.2026. Sd/- Sd/- (M. BALAGANESH) (MAHAVIR SINGH) ACCOUNTANT MEMBER VICE PRESIDENT

SRBhatnaggar Date: 10-9-2026 Copy forwarded to: - 1. Appellant 2. Respondent 3. DIT 4. CIT (A) 5. DR, ITAT Assistant Registrar, ITAT, Delhi Benches 3

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