SRENIVASULU REDDY THIKKAVARAPU,NELLORE vs. ITO, WARD-1, NELLORE

ITA 755/HYD/2026Status: DisposedITAT Hyderabad23 September 2026AY 2015-1612 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the notice issued by the AO under section 148 of the Act, dated 06/04/2022, was barred by limitation. The Tribunal found substance in the assessee's contention that as per the 'first proviso' to section 149 of the Act, as introduced by the Finance Act, 2021, a notice under section 148 for AY 2015-16 could not have been issued after 31/03/2022. The Tribunal agreed that the period of limitation prescribed under the pre-amended section 149(1)(b) was the relevant period, and the notice dated 06/04/2022 was issued beyond this period. The Tribunal further concurred that the fifth and sixth provisos to section 149(1) (post-amended) cannot be read into to extend the limitation period for the first proviso, which acts as a restriction. Relying on the judgments in Cyberabad Citizens Health Services Private Limited and Godrej Industries Ltd., the Tribunal concluded that the notice was invalid. Consequently, the assessment order passed by the AO under section 147 r.w.s 144B of the Act, dated 28/12/2023, based on this invalid notice, was quashed for want of valid assumption of jurisdiction. The Tribunal refrained from adjudicating on other contentions raised by the assessee, leaving them open.

What were the facts?

The assessee, Srenivasulu Reddy Thikkavarapu, filed an appeal against the order of the Commissioner of Income Tax (Appeals) - National Faceless Appeal Centre, Delhi, dated 08/12/2025. This order arose from an assessment order passed by the Assessing Officer (AO) under section 147 read with section 144B of the Income Tax Act, 1961, dated 28/12/2023, for Assessment Year 2015-16. The AO initiated reassessment proceedings based on information that the assessee had made cash deposits of Rs. 53,18,000/- in his bank account without filing a return of income. The AO subsequently passed an order under section 148A(d) on 05/04/2022, followed by a notice under section 148 on 06/04/2022. The assessee filed a return declaring an income of Rs. 2,69,220/-. The AO, in his final assessment order dated 28/12/2023, treated cash deposits of Rs. 32,18,000/- as unexplained money under section 69A and determined the total income at Rs. 34,87,220/-. The CIT(A) upheld the AO's order.

What were the issues?

1. Whether the assessment order passed by the AO under section 147 r.w.s 144B of the Act, dated 28/12/2023, is valid, considering the notice under section 148 of the Act was issued on 06/04/2022 for AY 2015-16. Assessee's Contention: The assessee argued that the notice under section 148 dated 06/04/2022 was issued beyond the time limit specified under the pre-amended section 149(1)(b) of the Act, which stipulated the latest date for issuing such a notice for AY 2015-16 as 31/03/2022. The assessee further contended that the provisos to the amended section 149, including the fifth and sixth provisos, which provide for exclusion of time and extension, cannot be read into for computing the limitation period for the first proviso. The assessee relied on the judgment of the Hon'ble High Court of Telangana in Cyberabad Citizens Health Services Private Limited vs. DCIT and the Bombay High Court in Godrej Industries Ltd. v. Assistant Commissioner of Income-tax. Revenue's Contention: The judgment does not explicitly record the revenue's specific arguments on this issue, but it implicitly refers to the revenue's reliance on the Patna High Court decision in Chandra Shekhar (supra) which was distinguished by the Tribunal.

Which sections of the Income-tax Act were involved?

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

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, HYDERABAD BENCHES, HYDERABAD

Before: SHRI RAVISH SOOD, HON’BLE & SHRI MADHUSUDAN SAWDIA, HON’BLE

PER RAVISH SOOD, JM: The present appeal filed by the assessee is directed against the order passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi (for short, “CIT(A)”), dated 08/12/2025, which in turn arises from the order passed by the Assessing Officer (for short, “AO”) under section 147 r.w.s 144B of the Income Tax Act, 1961 (for short, “the Act”), dated 28/12/2023 for ITA 755/HYD/2026 SRENIV

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 147

All 49,210 judgments and leading authorities on Section 147 →

Recent GST High Court judgments

Search GST case law →