FRIENDS COOPERATIVE HOUSING SOCIETY LIMITED,ETAWAH vs. DCIT/ACIT, AGRA

IN THE INCOME TAX APPELLATE TRIBUNAL, AGRA(DB) BENCH, AGRA BEFORE: SHRI S RIFAUR RAHMAN, ACCOUNTANTMEMBER AND SHRI SUNIL KUMAR SINGH,JUDICIALMEMBER ITA No.165,166,167 &168/Agr/2026 Assessment Year: 2014-15, 2015-16, 2016-17 &2017-18 M/s. Friends Co-op. Housing Vs. ACIT/DCIT, Society Ltd. Central Circle, 2(1)(1) Vivek Bihar Colony, Aayakar Bhawan Farukhabad Road Sanjay Place Etawah – 206 001 Agra – 282 002 PAN :AAAAF3339A (Appellant) (Respondent)

Assessee by Shri Ashish Jaiswal, Adv. Department by Shri Arun Kumar Yadav, CIT DR Date of hearing 23.04.2026 Date of pronouncement 29.04.2026 ORDER

PER: SUNIL KUMAR SINGH, JM. The facts and issues involved in all thesefour appeals are almost identical, hence, for the sake of convenience and brevity, these appeals are being decided by this common order. ITA No. 165/Agr/2026 (A.Y. 2014-15) 2. This appeal has been preferred against the impugned order dated 10.02.2026 passed in Appeal no. NFAC/2013-14/10265338by the Ld. Commissioner of Income tax(Appeals)/National Faceless Appeal Centre (NFAC), Delhi[hereinafter referred to as the “CIT(A)”] u/s. 250 of the

ITA No. 165,166,167 &168/Agr/2026

Income-tax Act, 1961 [hereinafter referred to as "Act"] for the Assessment Year A.Y. 2014-15, wherein learned CIT(A) has dismissed assessee's first appealexparte, upholding the addition of Rs. 1,28,65,000/- as income from capital gain, vide assessment order dated 26.05.2023. 3. At the very outset, Ld. Representative for the appellant assessee has submitted that the notices u/s 148 of the Act, have been issued in all the four appealsafter 30.06.2021, which are time-barred in accordance with the order dated 03.10.2024 passed by the Hon’ble Supreme Court of India in Union of India and ors. Vs. Rajeev Bansal, CIVIL Appeal No. 8629 of 2024. Ld. AR, thus, prayed to allow assessee’s appeal and quash all the notices issued u/s 148 and consequential reassessment proceedings in all the four matters. 4. Ld. CIT (DR)supports the exparte impugned order. 5. Perused the records and heard Ld. Representative for the appellant assessee and Ld. CIT(DR) for the respondent revenue. 6. We note that the appellant assessee has raised various grounds of appeal. The first ground relates to the notice u/s 148, being time-barred. This issue goes to the root of the matter hence deserves to be adjudicated first. Appellant assessee has submitted a paper book along with a chart for A.Y. 2014-15 at its page no 1, depicting various compliances in respect of issuance of notice u/s 148, which reads as under:- 2 | P a g e

ITA No. 165,166,167 &168/Agr/2026

ASSESSMENT YEAR 2014-15 Last Date to issue notice under section 148 as per Old Law 31.03.2021 Section 149 (6 years from the end of relevant assessment year) Extended deadline to issue notice under section 148 as per 30.06.2021 TOLA and notification issued therein Notice under section 148 issued under Old Law. 30.06.2021 Hon'ble Supreme Court Order dated 04-05-2022 in Ashish 04.05.2022 Agarwal's case deeming notice under section 148 issued under Old Law as Notice under section 148A(b) of New Law amended by Finance Act, 2021 and directing that material/information be given in 30 days from date of said order and assessee shall reply within two weeks thereafter. Notice providing material in pursuance of Hon'ble Supreme 30.05.2022 CourtOrder in Ashish Agarwal's case. Time limit to file reply (two weeks) 14.06.2022 Reply filed by the assessee No Reply (No extension sought oy assessee) Filed Time excluded as per third proviso to section 149(1) as per 30.06.2021 to supreme Court decision in Rajeev Bansal's case i.e. from the 30.06.2021 date of original 148 notice which was deemed as show cause notice under section 148A(b) by the decision of Ashish Agarwal till the supply of the material and time allowed to the assessee to file the reply Time that was available/left to issue notice under section 148 0 as persection 149 read with TOLA Extended time to be given as per fourth proviso to section 7 days 149(1) Time limit to issue notice under section 148 as per section 149 21.06.2022 as amended by Finance Act, 2021 as per Rajeev Bansal's case. Date of notice under section 148. 26.07.2022

“19 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, 3 | P a g e

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2015-2016, 2016-2017, and 2017-2018 will be within the period of limitation as explained in the tabulation below: Assessment Within 3 years Expiry of Within six Expiry of Year Limitation Years Limitation read with read with TOLA for (2) TOLA for (4) (1) (2) (3) (4) (5) 2013-2014 31.03.2017 TOLA not 31.03.2020 30.06.2021 applicable 2014-2015 31.03.2018 TOLA not 31.03.2021 30.06.2021 applicable 2015-2016 31.03.2019 TOLA not 31.03.2022 TOLA not applicable applicable 2016-2017 31.03.2020 30.06.2021 31.03.2023 TOLA not applicable 2017-2018 31.03.2021 30.06.2021 31.03.2024 TOLA not 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;”

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Act falls for completion betweenthe period 20.03.2020 and 31.03.2021.The time during which the show cause notices were deemed to be stayed is from the date of issuance of the deemed notice between 1 April 2021 and 30 June 2021 till the supply of relevant information and material by the assessing officers to the assesses in terms of the directions issued by the Apex Court in Union of India v. Ashish Agarwal,(2023) 1 SCC 617,and the period of two weeks allowed to the assesses to respond to the show cause notices. Accordingly, the assessing officer was required to issue the reassessment notice u/s. 148 of the new regime within the time limit surviving under the Act r/w TOLA and all the notices issued beyond the surviving period shall be time barred. 10. In the instant appeal pertaining to the A.Y. 2014-15, it transpires from the information provided by the assessee in the aforesaid tabulated format page 1 of assessee’s paper book, thatthe last date for issuance of notice u/s. 148 as per old law was 31.03.2021 (06 years from the end of relevant A.Y. 2014-15). The extended deadline to issue notice u/s. 148 as per TOLA and relevant notification was 30.06.2021. The deeming notice u/s. 148 was to be issued under old law on 04.05.2022 as notice u/s. 148 A (b) of the new law amended by the Finance Act, 2021in compliance of order dated 04.05.2022 passed by the Apex Court in Ashish Agarwal (supra).The limitation for notice providing material in pursuance of directions issued in 5 | P a g e

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Ashish Agrawal (supra)was 30.05.2022. The time limit to file reply was 14.06.2022 (two weeks). Seven days extended time was to be given as per fourth proviso to section 149(1) of the Act. The time limit to issue notice u/s. 148 as per section 149 as amended by the Finance Act, 2021 as per Rajeev Bansal (supra), was 21.06.2022, however, the notice u/s. 148 was issued on 26.07.2022 beyond the period of limitation.We, accordingly hold that the notice u/s 148 of the Act, dated 26.07.2022 as invalid in law. Since the notice u/s 148 of the Act, has been declared as invalid, the consequent reassessment proceedings stand quashed. The other grounds raised under appeal are left open.The assessee’s appeal is liable to be allowed. ITA No. 166/Agr/2026 (A.Y. 2015-16) 11. This appeal has been preferred against the impugned order dated 10.02.2026 passed in Appeal no. NFAC/2014-15/10265344by the Ld. Commissioner of Income tax(Appeals)/National Faceless Appeal Centre (NFAC), Delhifor the Assessment Year A.Y. 2015-16, wherein learned CIT(A) has dismissed assessee's first appealexparte, upholding the addition of Rs. 7,32,45,200/- as income from capital gain, vide assessment order dated 26.05.2023. 12. In Rajeev Bansal (supra), Apex Court has in para 19 (f), has recorded revenue’s submissions, conceding that for the A.Y. 2015-16 all notices issued on or after 01.04.2021 will have to be dropped as they will not fall for 6 | P a g e

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completion during the period prescribed under TOLA. The information in respect of the completion and compliance of various actions, supplied by the assessee in the tabulated form at page 10 of assessee’s paper book, are identical as that of ITA/165/Agr/2026. Our findings given in ITA/165/Agr/2026 shall mutatis mutandis apply in this case also.We, hold that the notice u/s 148 of the Act, dated 26.07.2022 issued beyond the limitation period is invalid in law. Since the notice u/s 148 of the Act, has been declared as invalid, the consequent reassessment proceedings stand quashed. The other grounds raised under appeal are left open. The assessee’s appeal is liable to be allowed. ITA No. 167/Agr/2026 (A.Y. 2016-17) 13. This appeal has been preferred against the impugned order dated 10.02.2026 passed in Appeal no. NFAC/2015-16/10265349 by the Ld. Commissioner of Income tax(Appeals)/National Faceless Appeal Centre (NFAC), Delhi,for the Assessment Year A.Y. 2016-17, wherein learned CIT(A) has dismissed assessee's first appealexparte, upholding the addition of Rs. 9,06,60,400/- as income from capital gain, vide assessment order dated 26.05.2023. 14. The information in respect of the completion and compliance of various actions, supplied by the assessee in the tabulated form at page 19 of assessee’s paper book, are identical as that of ITA/165/Agr/2026, except 7 | P a g e

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that the date of notice u/s. 148 is 30.07.2022. The facts and issues in this case are identical to ITA/165/Agr/2026 except the figures of quantum addition etc.Our aforesaid findings shall mutatis mutandis apply in this case also. We, hold that the notice u/s 148 of the Act, dated 30.07.2022 issued beyond the limitation period is invalid in law. Since the notice u/s 148 of the Act, has been declared as invalid, the consequent reassessment proceedings stand quashed. The other grounds raised under appeal are left open. The assessee’s appeal is liable to be allowed. ITA No. 168/Agr/2026 (A.Y. 2017-18) 15. This appeal has been preferred against the impugned order dated 10.02.2026 passed in Appeal no. NFAC/2016-17/10265352 by the Ld. Commissioner of Income tax(Appeals)/National Faceless Appeal Centre (NFAC), Delhi,for the Assessment Year A.Y. 2017-18, wherein learned CIT(A) has dismissed assessee's first appealexparte, upholding the addition of Rs. 5,45,17,000/- as income from capital gain, vide assessment order dated 26.05.2023. 16. The information, in respect of the completion and compliance of various actions, supplied by the assessee in the tabulated form at page 28 of assessee’s paper book, are identical as that of ITA/165/Agr/2026, except that the date of notice u/s. 148 is 30.07.2022. The facts and issues in this case are identical to ITA/165/Agr/2026 except the figures of quantum 8 | P a g e

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addition etc. Our aforesaid findings shall mutatis mutandis apply in this case also. We, hold that the notice u/s 148 of the Act, dated 30.07.2022 issued beyond the limitation period is invalid in law. Since the notice u/s 148 of the Act, has been declared as invalid, the consequent reassessment proceedings stand quashed. The other grounds raised under appeal are left open. The assessee’s appeal is liable to be allowed. 17. In the result, assessee’s appeals, ITA No. 165/Agr/2026, ITA No. 166/Agr/2026, ITA No. 167/Agr/2026 and ITA No 168/Agr/2026 are allowed. Order pronounced on 29.04.2026 Sd/- Sd/- (S RIFAUR RAHMAN) (SUNIL KUMAR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER

Dated: 29.04.2026 Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, Agra

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