VEDANTA LTD.,NEW DELHI vs. ASSISTANT COMMISSIONER OF INCOME TAX, NEW DELHI

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ITA 5632/DEL/2025Status: DisposedITAT Delhi22 May 2026AY 2013-146 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the notice issued under Section 148 of the Act was indeed barred by limitation. Consequently, the assessment framed based on this invalid notice was deemed bad in law and void ab initio, leading to the quashing of the reassessment.

What were the facts?

The assessee challenged a reassessment notice issued under Section 148 of the Income Tax Act, 1961, arguing it was barred by limitation. The notice was issued on 29.07.2022, which the assessee contended was beyond the survival period as per relevant High Court and Supreme Court decisions.

What were the issues?

The primary issue was whether the notice issued under Section 148 of the Income Tax Act, 1961, for reassessment was barred by limitation based on the prescribed survival period.

Which sections of the Income-tax Act were involved?

Section 148,Section 148A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH, ‘F’: NEW DELHI

Before: SHRI C.N. PRASAD & SHRI SANJAY AWASTHI

For Respondent: Ms. Monika Singh, CIT DR
Hearing: 05.05.2026Pronounced: 22.05.2026

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH, ‘F’: NEW DELHI BEFORE SHRI C.N. PRASAD, JUDICIAL MEMBER AND SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER

ITA No.5632/Del/2025 [Assessment Year: 2013-14] Vedanta Ltd. Vs ACIT Core-6, III Floor, Scope New Delhi Complex, 7 Lodhi Road, New Delhi-110003 PAN No.AACCS7101B Appellant Respondent Appellant by Sh. Sachit Jolly, Sr. Advocate Sh. Abhyudaya Shankar Bajpai, Advocate Sh. Sohum Dua, Advocate Respondent by Ms. Monika Singh, CIT DR Date of Hearing 05.05.2026 Date of Pronouncement 22.05.2026

ORDER PER C.N. PRASAD, J.M. This appeal is filed by the assessee against the order of Ld. CIT(A)/NFAC dated 15.07.2025 for the A.Y. 2013-14.

2.

Ld. Counsel for the assessee at the outset submitted that notice dated 29.07.2022 issued u/s.148 of the Act is barred by limitation for the reason that the same is issued

beyond the survival period as per the decision of the Hon’ble Delhi High Court in the case of Ram Balram Build Home Pvt. Ltd. Vs. ITO (447 ITR 133) and the decision of the Hon’ble Supreme Court in the case of Union of India Vs. Ashish Aggarwal (444 ITR 1).

3.

Referring to the table furnished before us showing the sequence of events and the limitation as per the decision of the Hon’ble Supreme Court in the case of Union of India Vs. Ashish Aggarwal (444 ITR 1), Ld. Counsel submits that the notice issued u/s.148 of the Act dated 29.07.2022 is beyond the surviving period. Ld. Counsel submits that the survival period of one day + 7 days as specified u/s.148A(d) of the Act expired on 25.07.2022 and therefore, the notice issued u/s.148 of the Act on 29.07.2022 is barred by limitation.

4.

Ld. Counsel further submitted that a short note on limitation which is as under :-

5.

Heard rival contentions and perused the orders of the authorities below. We find considerable merit in the submission of the Ld. Counsel for the assessee. The

contention of the assessee and the sequence of events were not controverted with the evidences by the revenue. Thus, respectfully following the decision of the Hon’ble Delhi High Court in the case of Rambalram Buildhome Pvt. Ltd. Vs. ITO (supra) and decision of Hon’ble Supreme Court in the case of Ashish Agarwal (supra) we hold that the notice issued u/s.148 of the Act dated 29.07.2022 is barred by limitation and consequently the assessment framed on the basis of such notice is bad in law and void abinitio and accordingly the reassessment is quashed. Ground No.1 of grounds of appeal of the assessee is allowed.

6.

Since we have quashed the reassessment on legal issue the grounds on merits are not adjudicated at this stage as they become academic in nature and they are left open.

7.

In the result, the appeal of the assessee is partly allowed as indicated above.

Order pronounced in the open court on 22.05.2026.

Sd/- Sd/- [SANJAY AWASTHI] [C.N. PRASAD] ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 22.05.2026

NEHA , Sr.P.S.* Copy forwarded to: 1. Appellant 2. Respondent 3. PCIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi

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