DARSHAN SWARUPCHAND KANDI,PARBHANI vs. INCOME TAX OFFICER, WARD HINGOLI

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ITA 1643/PUN/2024Status: DisposedITAT Pune25 May 2026AY 2014-154 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the notice under Section 148 was issued beyond the surviving period prescribed by the Supreme Court and High Court judgments, making it time-barred. Consequently, the reassessment order was also deemed bad in law.

What were the facts?

The assessee filed an appeal against the reassessment order for AY 2014-15. The primary issue was the validity of the notice issued under Section 148 of the Income Tax Act, 1961.

What were the issues?

Whether the notice issued under Section 148 of the Income Tax Act, 1961, for reassessment was barred by limitation.

Which sections of the Income-tax Act were involved?

Section 148,Section 148A,Section 144B,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PUNE BENCH “A”, PUNE

Before: MS. ASTHA CHANDRA & SHRI Dr. DIPAK P. RIPOTE

For Appellant: Shri Darshan R. Gattani
For Respondent: Smt. Sonal L. Sonkavde, Addl.CIT

आदेश /ORDER

PER Dr. DIPAK P. RIPOTE, A.M : This is an appeal filed by the assessee against the order of the Learned Commissioner of Income Tax (Appeals), NFAC, Delhi [Ld.CIT(A)], passed u/s. 250 of the Income Tax Act, 1961 (‘the Act’) for AY 2014-15 on 06-06-2024, emanating from the Assessment Order u/s 147 r.w.s. 144B of the Act, dated 23-05-2023.

2.

Submission of Ld.AR: At the outset, the Ld.AR submitted that the notice u/s. 148 of the Act issued on 23-07-2022 is beyond the surviving period mentioned by the Hon’ble Supreme Court in the case of Rajeev Bansal. Ld.AR submitted the chart in the paper book and copy of notices. The chart submitted by the Ld.AR is reproduced as under:

ITA No. 1643/PUN/2024

Ld.AR relied on the following decisions: i. ITAT, Pune Bench in the case of DCIT vs. Kolte Patil Integrated Townships Limited (ITA No. 2023 and 2011/PUN/2024); ii. ITAT, Pune Bench in the case of Gulamahemad hamidulla Khan vs. ITO (ITA No. 166/PUN/2025); Ld.AR filed copies of the above decisions in the paper book.

3.

Submission of Ld.DR: The Ld.DR relied on the order of the AO as well as the Ld.CIT(A)

4.

Findings and analysis: We have heard both the parties and perused the records. In this case, assessee is an individual had filed return of income 16-04-2015 for AY. 2014-15, declaring total income at Rs. 3,25,580/-. Initially, notice u/s. 148 of the Act was issued by the AO on 17-06-2021 under the old provisions. Subsequently, in compliance to decision of the Hon’ble Supreme Court in the case of Ashish Agarwal, AO issued notice u/s. 148A(b) of the Act on 28-05-2022. Assessee filed reply on 11-06-2022. The AO issued notice u/s. 148 of the Act on 23-07-2022. The Hon’ble Bombay High Court in the case of Hitesh Ramniklal Shah vs. ACIT [2025] 180 taxmann.com 642 (Bombay) has held as under:

ITA No. 1643/PUN/2024

Quote “26. After considering the above exclusion period, we observe that the remaining days for conclusion of the procedure for passing of an order in terms of Section 148A(d) and issuance of the notice under Section 148 of the Act would be two days. In the present case, whichever way we see it, the period of two days would expire on 10 June 2022 or 27 June 2022 respectively and, therefore, the notice under Section 148 of the Act issued on 27 July 2022 is time barred, inasmuch as it is issued much after the surviving period. We concur with the judgments of the co-ordinate bench in Gurpreet Singh (supra), of the Delhi High Court in Ram Balram Buildhome (P.) Ltd (supra) and the Gujarat High Court in Dhanraj Govindram Kalle (supra) which have dealt with the surviving period and quashed the notices issued under Section 148 of the Act passed beyond the surviving period. 27. In view of the above, it is apparent that Respondent No.1 has acted beyond jurisdiction and we accordingly set aside the impugned notice issued under Section 148 of the Act as well as all the subsequent notices issued under Section 142(1) and the show cause notice on the above ground. ….” Unquote Similarly, ITAT, Pune in the case of DCIT vs. Kolte Patil Integrated Township Limited in ITA Nos. 2023 and 2011/PUN/2024, dt. 10-03-2025, has held in para No. 22 as under: Quote “…… Hon’ble Supreme Court has referred to this time limit as the surviving time limit available. Now, applying the same principle, as laid down by Hon’ble Supreme Court in the case of Rajeev Bansansal, for AY. 2014-15, the Assessing Officer should have issued notice u/s. 148 by 13.06.2022 and for AY. 2016-17 by 26-06-2022. For both the years, the learned AO has issued notice u/s. 148 subsequent to those dates i.e., 25-07- 2022 and 26-07-2022 respectively and therefore, the notices issued u/s. 148 in the new regime for both the years are barred by limitation.” Unquote In the case of the Assessee the AO has issued notice u/s 148 in the New Regime on 23-07-2022, which was beyond the surviving period. Respectfully following the Hon’ble jurisdictional High Court (supra) and ITAT, Pune, the impugned notice u/s. 148 of the Act is held as barred by limitation and accordingly bad in law. Therefore, the consequential reassessment order is also bad in law. Accordingly, the legal ground No.1 raised by the assessee is allowed. Since we have decided the Legal Ground in favour of the Assessee, all other grounds are dismissed as unadjudicated.

5.

In the result appeal of the assessee is partly allowed. Order pronounced in the open Court on 25th May, 2026

Sd/- Sd/- (MS. ASTHA CHANDRA) (Dr. DIPAK P. RIPOTE) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे/Pune; दिन ांक/Dated : 25-05-2026 TNMM

ITA No. 1643/PUN/2024

आदेश की प्रतितिति अग्रेतिि/Copy of the Order is forwarded to: अपील र्थी / The Appellant 1. प्रत्यर्थी / The Respondent 2. 3. The concerned Pr.CIT, Pune 4. DR, ITAT, ‘A’ Bench, Pune 5. ग र्ड फ ईल / Guard file. आदेशानुसार/ BY ORDER, // True Copy // Assistant Registrar आयकर अपीलीय अदिकरण ,पुणे / ITAT, Pune

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