INCOME TAX OFFICER, WARD-8(2), KOLKATA, KOLKATA vs. SHARMA HIRE PURCHASE LIMITED, KOLKATA

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ITA 3088/KOL/2025Status: DisposedITAT Kolkata23 June 2026AY 2015-1611 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the CIT(A)'s decision, finding that the notice issued under Section 148 on April 16, 2021, was time-barred. This was based on the Supreme Court's concession that for AY 2015-16, notices issued after April 1, 2021, would be dropped.

What were the facts?

The Revenue appealed against the CIT(A)'s order which held the assessment for AY 2015-16 as time-barred. The assessee's case was reopened based on information regarding share trading losses, with a notice issued under Section 148 on April 16, 2021.

What were the issues?

Whether the reassessment proceedings initiated by issuing a notice under Section 148 on April 16, 2021, for AY 2015-16 were barred by limitation.

Which sections of the Income-tax Act were involved?

Section 147,Section 148,Section 148A,Section 151

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “D” BENCH, KOLKATA

For Appellant: Shri Soumitra Choudhary, AR
For Respondent: Shri S.B. Chakraborthy, DR
Hearing: 14.05.2026Pronounced: 23.06.2026

Per Rajesh Kumar, AM:

This is an appeal preferred by the Revenue against the order of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 23.10.2025 for the AY 2015-16.

2.

The only issue raised by the Revenue is against the order of ld. CIT (A) holding that A.Y. 2015-16, being time barred by limitation in consonance with the decision of the Hon'ble Apex Court in the case of Union of India and other Vs. Rajeev Bansal [2024] 469 ITR 46 (SC), dated 03.10.2024.

4.

Aggrieved assessee preferred the appeal before the ld. CIT (A), who allowed the appeal of the assessee by observing and holding as under:-

“5. Observation and Decision: The impugned assessment order, the statement of facts and the written submission of the appellant have been perused. Based on the facts and circumstances of the case, the appeal is decided as under. 5.1 Grounds of appeal: The grounds of appeal raised by the appellant are reproduced and adjudicated below -

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;

5.

After hearing the rival contentions and perusing the materials available on record , we find that the appeal of the assessee has been allowed by the ld. CIT(A) by relying on the decision of Hon'ble’ Apex Court in the case of Union of India v. Rajeev Bansal 2024 SCC OnLine SC 2693/[2024] 167 taxmann.com 70/301 Taxman 238/469 ITR 46 (SC). The case of the assessee is also covered by the recent decision of Deepak Steel and Power Ltd. vs. Central Board of Direct Taxes [2025] 174 taxmann.com 144 (SC)/[2025] 305 Taxman 169 (SC)/[2025] 476 ITR 369 (SC)[02-04-2025], wherein it has held as under:-

“3. We heard Mr. Saswat Kumar Acharya, the learned counsel appearing for the appellants(assessee) and Mr. Chandrashekhar, the learned counsel appearing for the revenue. 4. The learned counsel appearing for the revenue with his usual fairness invited the attention of this Court to a three judge bench decision of this Court in Union of India v. Rajeev Bansal 2024 SCC OnLine SC 2693/[2024] 167 taxmann.com 70/301 Taxman 238/469 ITR 46 (SC), more particularly, paragraph 19(f) which reads thus:- "19. (f) The Revenue concedes that for the assessment year 2015- 2016, all notices issued on or after April 1, 2021 will have to be dropped as they will not fall for completion during the period prescribed under the Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020." 5. As the revenue made a concession in the aforesaid decision that is for the assessment year 2015-2016, all notices issued on or after 1st April, 2021 will have to be dropped as they would not fall for completion during the period prescribed under the taxation and other laws (Relaxation and Amendment of certain Provisions Act, 2020). Nothing further is required to be adjudicated in this matter as the notices so far as the present litigation is concerned is dated 25.6.2021. 6. In view of the aforesaid, in such circumstances referred to above the original writ petition nos.2446 of 2023, 2543 of 2023 and 2544 of 2023 respectively filed before the High Court of Orissa at cuttack stands allowed.”

7.

In the result, the appeal of the Revenue is dismissed.

Order pronounced on 23.06.2026.

Sd/- Sd/- (DUVVURU RL REDDY) (RAJESH KUMAR) (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) Kolkata, Dated: 23.06.2026 Sudip Sarkar, Sr.PS Copy of the Order forwarded to: 1. The Appellant 2. The Respondent 3. CIT DR, ITAT, 4. 5. Guard file. BY ORDER, True Copy//

Asst. Registrar Income Tax Appellate Tribunal, Kolkata

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