NAG PROJECTS PRIVATE LIMITED ,BENGALURU vs. DCIT, CIRCLE-3(1)(1), BANGALORE

ITA 2142/BANG/2025Status: DisposedITAT Bangalore28 September 2026AY 2015-1625 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the notice issued under Section 148 of the Income Tax Act, 1961, on July 30, 2022, for Assessment Year 2015-16, is invalid and barred by limitation. The reasoning is that the first proviso to the substituted Section 149(1) acts as a statutory bar, as the six-year limitation period under the old regime for AY 2015-16 expired on March 31, 2022. The Tribunal found that procedural compliance with Section 148A or exclusion of time under erstwhile provisos cannot override this fundamental jurisdictional defect of limitation. The Tribunal respectfully followed the decisions of the Hon'ble Apex Court and the jurisdictional High Court, as well as a coordinate bench decision in Abbur Subramanyam Venkata Kumar, which held that a notice issued on April 8, 2022, for AY 2015-16 was invalid and barred by time. Consequently, the reassessment order passed on May 30, 2023, is quashed. Since the sole legal ground was decided in favor of the assessee, other grounds became academic. The operative direction is to quash the reassessment order.

What were the facts?

The assessee, Nag Projects Private Limited, is in appeal against the order of the CIT(A)/NFAC dated July 22, 2025, for Assessment Year 2015-16. The original assessment order under Section 143(3) was passed on December 21, 2017. Subsequently, reassessment proceedings were initiated. A show cause notice under Section 148A(b) was issued, followed by an order under Section 148A(d) on July 30, 2022. On the same day, a notice under Section 148 was issued, directing the assessee to furnish a return. The reassessment order under Section 147 read with Section 144B was passed on May 30, 2023, adding Rs. 3,32,87,214/- as deemed income under Section 40(a)(i)(a). The dispute centers on the limitation period for issuing the Section 148 notice.

What were the issues?

1. Whether the notice issued under Section 148 of the Income Tax Act, 1961, on July 30, 2022, for Assessment Year 2015-16 is barred by limitation, in light of the first proviso to Section 149(1) of the Act? Assessee's contention: The notice issued under Section 148 on July 30, 2022, for AY 2015-16 is barred by limitation as per the first proviso to Section 149(1) of the Act. Consequently, the subsequent proceedings and the reassessment order are non-est and void ab initio. Revenue's contention: The order under Section 148A(d) and the notice under Section 148, both dated July 30, 2022, were within the prescribed timeline, citing the 5th and 6th Provisos to Section 149(1) of the Act. The revenue also argued that an initial notice under Section 148 was issued on June 30, 2021, which was before March 31, 2022, and the subsequent notice dated July 30, 2022, was issued following the Supreme Court's ruling in Union of India vs. Ashish Agarwal.

Which sections of the Income-tax Act were involved?

Section 148,Section 148A,Section 147,Section 144B,Section 143(3),Section 40(a)(i)(a),Section 149(1),Section 149(1)(b)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B’’BENCH: BANGALORE

Before: SHRI BALAKRISHNAN S. & SHRI KESHAV DUBEY

Hearing: 06.07.2026Pronounced: 28.09.2026

PER KESHAV DUBEY, JUDICIAL MEMBER:

This appeal at the instance of the assessee is directed against the order of the ld. CIT(A)/NFAC dated 22.07.2025 vide DIN & Order No. ITBA/NFAC/S/250/2025-26/1078772369(1) passed u/s 250 of the Income Tax Act, 1961 (in short “the Act”) for the assessment year 2015-16. 2. The assessee has raised the following grounds of appeal:- Nag Projects Private Limited, Bengaluru Nag Projects Private Limited, Bengaluru 3. The assessee has also filed a petition dated 09.09.2025 for the admission of additional grounds of appeal, which is reproduced bel

The order continues below.

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