KAWALJEET KAUR KOHLI,MUMBAI vs. INCOME TAX OFFICER WARD 28 2 1 NAVI MUMBAI, NAVI MUMBAI

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ITA 4690/MUM/2026Status: DisposedITAT Mumbai07 July 2026AY 2015-166 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the reassessment notice issued under Section 148 on April 4, 2022, for Assessment Year 2015-16 was barred by limitation. This was based on the Supreme Court's decision in Rajeev Bansal, which stated that notices for AY 2015-16 issued after April 1, 2021, would be time-barred.

What were the facts?

The assessee purchased an immovable property for Rs. 1,12,35,000 and received salary and interest income. The Assessing Officer treated the property investment as unexplained and added it to the total income. The CIT(A) sustained the addition.

What were the issues?

Whether the reassessment proceedings initiated for Assessment Year 2015-16 were barred by limitation due to the timing of the notice under Section 148, considering the provisions of TOLA and the Supreme Court's ruling in Rajeev Bansal.

Which sections of the Income-tax Act were involved?

Section 147,Section 144,Section 144B,Section 69,Section 148,Section 149

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “E” BENCH MUMBAI

Before: SHRI AMIT SHUKLA & SHRI GIRISH AGRAWAL

Hearing: 01.07.2026Pronounced: 07.07.2026

IN THE INCOME TAX APPELLATE TRIBUNAL “E” BENCH MUMBAI BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER AND SHRI GIRISH AGRAWAL, ACCOUNTANT MEMBER ITA No. 4690/MUM/2026 Assessment Year: 2015-16 Kawaljeet Kaur Kohli Income Tax Officer, 101 Harivila Plot No 8 7, Ward – 28(2)(1), Sector No 6, Airoli Navi Mumbai Vs. Navi Mumbai - 400708 (PAN: BLAPK1007M) (Appellant) (Respondent) Present for: Assessee : Shri Mandar Vaidya, Advocate Revenue : Smt Sujatha Iyyanger, Sr. DR Date of Hearing : 01.07.2026 Date of Pronouncement : 07.07.2026 O R D E R PER GIRISH AGRAWAL, ACCOUNTANT MEMBER: This appeal filed by the assessee is against the order of CIT(A)/National Faceless Appeal Centre (NFAC), Delhi vide Order No. ITBA/NFAC/S/250/2025-26/1082939983(1), dated 24.11.2025, passed against the assessment order by Assessment Unit, u/s. 147 r.w.s. 144 r.w.s. 144B and of the Income-tax Act, 1961 (hereinafter referred to as the “Act”), dated 06.03.2024, for Assessment Year 2015- 16.

2.

There is a delay of 82 days in filing the present appeal before the Tribunal as noted by the Registry. Assessee has placed on record a petition for condonation of delay along with notarized affidavit

2 ITA No. 4690/Mum/2026 Kawaljeet Kaur Kohli AY 2015-16 explaining the reasons for the said delay. We have considered the submissions so made and find it appropriate to condone the said delay and take up the matter for adjudication.

3.

Brief facts of the case are that assessee is an individual and did not file his return of income for the year under consideration. Assessee purchased an immovable property for a consideration of Rs.1,12,35,000/-, received salary of Rs.66,624/- from M/s Datta Megha World Academy and Rs.7,293/- as interest during the year under consideration. Ld. Assessing Officer, in the absence requisite details/documents for the investment of amount of Rs.1,12,35,000/- in the purchase of immovable property, treated it as un-explained investment u/s.69 to make its addition the total income of the assessee. Aggrieved, assessee went in appeal before the ld. CIT(A), who after providing three opportunities of being heard to the assessee, sustained the addition made by the ld. Assessing Officer.

4.

Assessee vide ground no.1 and 2 before us, challenges the impugned reassessment proceedings, contesting that it is barred by the limitation in view of the decision of Hon'ble Supreme Court in the case of Union of India vs. Rajeev Bansal [2024] 167 taxmann.com 70 (SC). Since the said ground of appeal goes to the roots of the matter being jurisdictional issue, the same is taken up for adjudication. Merits of the case have not been argued upon by either party nor any submission made to that effect. Accordingly, we draw facts from the records relating to said legal ground, argued before the Bench.

4.1. Relevant undisputed fact is that notice u/s. 148 was issued on 04.04.2022 under the new regime of reassessments. In this regard, we

3 ITA No. 4690/Mum/2026 Kawaljeet Kaur Kohli AY 2015-16 find that this issue has been settled in the case of Rajeev Bansal (supra) wherein reference is made to the submissions made on behalf of the Revenue vide para 19 which is relevant and the same is reproduced hereunder:- “19. Mr N Venkataraman, learned Additional Solicitor General of India, made the following submissions on behalf of the Revenue: a. Parliament enacted TOLA as a free-standing legislation to provide relief and relaxation to both the assessees and the Revenue during the time of COVID- 19. TOLA seeks to relax actions and proceedings that could not be completed or complied with within the original time limits specified under the Income Tax Act, b. Section 149 of the new regime provides three crucial benefits to the assesses: (i) the four-year time limit for all situations has been reduced to three years, (ii) the first proviso to Section 149 ensures that re-assessment for previous assessment years cannot be undertaken beyond six years, and (iii) the monetary threshold of Rupees fifty lakhs will apply to the re- assessment for previous assessment years, c. The relaxations provided under Section 3(1) of TOLA apply "notwithstanding anything contained in the specified Act." Section 3(1), therefore, overrides the time limits for issuing a notice under Section 148 read with Section 149 of the Income Tax Act; d. TOLA does not extend the life of the old regime. It merely provides a relaxation for the completion or compliance of actions following the procedure laid down under the new regime; e. The Finance Act 2021 substituted the old regime for re-assessment with a new regime. The first proviso to Section 149 does not expressly bar the application of TOLA. Section 3 of TOLA applies to the entire Income Tax Act including Sections 149 and 151 of the new regime. Once the first proviso to Section 149(1)(b) is read with TOLA, then all the notices issued between 1 April 2021 and 30 June 2021 pertaining to assessment years 2013-2014, 2014-2015, 2015-2016, 2016-2017 and 2017-2018 will be within the period of limitation as explained in the tabulation below; Assessme Within 3 Years Expiry of Within six Years Expiry of nt Year (2) Limitation (4) Limitation read (1) read with with TOLA for (4) TOLA for (2) (3) (5) 2013- 31.03.2017 TOLA not 31.03.2020 30.06.2021 2014 applicable 2014- 31.03.2018 TOLA not 31.03.2021 30.06.2021 2015 applicable 2015- 3103.2019 TOLA not 31.03.2022 TOLA not 2016 applicable applicable

4 ITA No. 4690/Mum/2026 Kawaljeet Kaur Kohli AY 2015-16 2016- 31.03.2020 30.06.2021 31.03.2023 TOLA not 2017 applicable 2017- 31.03.2021 30.06.2021 31.03.2024 TOLA not 2018 applicable

f. The Revenue concedes that for the assessment year 2015-16, all notices issued on or after 1 April 2021 will have to be dropped as they will not fall for completion during the period prescribed under TOLA; g. Section 2 of TOLA defines "specified Act" to mean and include the Income Tax Act. The new regime, which came into effect on 1 April 2021, is now part of the Income Tax Act. Therefore, TOLA continues to apply to the Income Tax Act even after 1 April 2021; and h. Ashish Agarwal (supra) treated Section 148 notices issued by the Revenue between 1 April 2021 and 30 June 2021 as show-cause notices in terms of Section 148A(b). Thereafter, the Revenue issued notices under Section 148 of the new regime between July and August 2022. Invalidation of the Section 148 notices issued under the new regime on the ground that they were issued beyond the time limit specified under the Income Tax Act read with TOLA will completely frustrate the judicial exercise undertaken by this Court in Ashish Agarwal (supra).

4.2. Thus, it can be seen that Revenue conceded before the Hon’ble Supreme Court in para 19(f) for dropping all the notices issued on or after 01.04.2021 for A.Y. 2015-16 as they will not fall for completion during the period prescribed under TOLA.

4.3. This issue had come up before the Hon'ble Delhi High Court in the case of IBIBO Group Pvt. Ltd. vs. ACIT, WP(C)17639 of 2022, dated 13.12.2024 wherein re-assessment action for Assessment Year 2015- 16 was held to be not sustainable. Hon'ble Court quashed the notice issued u/s.148 as well as order passed u/s. 148A(d), dated 23.07.2022 for Assessment Year 2015-16 by following the decision in the case of Rajeev Bansal (supra).

4.4. In the case of present assessee, since the notice issued u/s.148 is dated 04.04.2022, period of six years expired on 31.03.2022 and is

5 ITA No. 4690/Mum/2026 Kawaljeet Kaur Kohli AY 2015-16 thus, barred by limitation. Accordingly, notice so issued and re- assessment completed thereafter u/s. 147 is liable to be quashed, in view of the decision of Hon'ble Supreme Court in the case of Rajeev Bansal (supra) which was followed by Hon'ble Delhi High Court in the case of IBIBO (supra).

4.5. Hon'ble Supreme Court while dismissing the SLP filed by Revenue in the case of ACIT vs. Nehal Ashit Shah in SLP (Civil) Diary No(s). 57209/2024, dated 04.04.2025 held that it does not survive for further consideration. While holding so, Hon'ble Court noted in para 7 as under: “5. In this regard, reference could also be made to paragraph 19(e) and (f) in the case of Union of India vs. Rajeev Bansal, Civil Appeal No.8629 of 2024 on 03.10.2024 (2024 SCC ONLINE 754) under which the learned Additional Solicitor General for India has made a concession insofar as the assessment year 2015-16 is concerned.”

4.6. In another decision also, Hon'ble Supreme Court dismissed the SLP filed by the Revenue in the case of Income Tax Officer vs. Sri Sai Kumar Mateti in SLP (Civil) No. 8682 of 2024. Hon'ble Court in para-7 of the order observed, by referring to its own decision in the Rajeev Bansal (supra) specific to Assessment Year 2015-16 as under: “Consequently, keeping in mind the reasons set out in order dated 10.04.2026, the impugned judgment in each appeal is set aside and the instant appeals are disposed of by remitting the matters to the jurisdictional High Courts for redetermination of the issues. As observed above, the High Courts shall firstly determine whether the matters pertain to Assessment Year 2015-16. If it is found to be so, no further adjudicatory exercise shall be required to be undertaken by the High Court, except to declare the notices as being time-barred in light of Rajeev Bansal (supra). However, if it is found that the case does not pertain to Assessment Year 2015-16, then all the issues shall be resolved in terms of the order dated 10.04.2026 passed in Civil Appeal No. 4716 of 2026.”

5.

In view of above stated deliberation, both on facts and law including the applicable jurisprudence, we hold that notice for A.Y. 2015-16 issued on 04.04.2022 u/s 148 of the new regime is barred by

6 ITA No. 4690/Mum/2026 Kawaljeet Kaur Kohli AY 2015-16 limitation and hence bad in law, liable to be quashed, resulting in impugned reassessment proceedings as well as the impugned reassessment order bad in law. Accordingly, grounds raised by the assessee in this respect are allowed. All the other grounds of appeal are thus, rendered academic in nature.

6.

In the result, appeal filed by the assessee is allowed.

Order is pronounced in the open court on 07 July, 2026

Sd/- Sd/- (Amit Shukla) (Girish Agrawal) Judicial Member (Accountant Member) Dated: 07 July, 2026 MP, Sr.P.S. Copy to : 1 The Appellant 2 The Respondent 3 DR, ITAT, Mumbai 4 Guard File 5 CIT BY ORDER,

(Dy./Asstt.Registrar) ITAT, Mumbai

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