SPECTRUM STOCK SERVICES PRIVATE LIMITED,KOLKATA vs. ITO, WARD 1(1),, KOLKATA

ITA 555/KOL/2026Status: DisposedITAT Kolkata15 October 2026AY 2014-201514 pages
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What did the Tribunal hold?

The Tribunal held that the notice issued under Section 148 of the Income Tax Act, 1961, dated 29.07.2022, for Assessment Year 2014-15, is bad in law and quashed. The reasoning is based on the Supreme Court's decision in Union of India vs. Rajeev Bansal, which clarifies the application of TOLA and the new reassessment provisions. The Tribunal noted that the original time limit for issuing the notice had expired. Even with the extensions provided by TOLA, the extended period for issuing the notice under Section 148 for AY 2014-15 expired on 30.06.2021. The facts indicate that the notice under Section 148A(b) was issued on 01.06.2022, the assessee replied on 18.06.2022, leaving a surviving period of only 3 days. Under the fourth proviso to Section 149(1), this period was extended to 7 days, expiring on 25.06.2022. Therefore, the Assessing Officer ought to have issued the notice under Section 148 by 25.06.2022. Since the notice was issued on 29.07.2022, it is beyond the surviving limitation period. The ratio decidendi is that reassessment notices issued beyond the time limit surviving under the Income Tax Act read with TOLA are time-barred and liable to be set aside. The appeal of the assessee is allowed on this legal ground, and subsequent proceedings are declared void.

What were the facts?

The assessee, Spectrum Stocks Services Private Limited, filed an appeal against the order of the National Faceless Appeal Centre (NFAC), Delhi, for Assessment Year 2014-15. The original assessment was completed under Section 147, disallowing a claim of Rs. 64,10,220/- as loss from stock options. The assessee's appeal before the CIT(A) was dismissed on legal and merit grounds. The primary legal challenge before the ITAT concerns the validity of the notice issued under Section 148 dated 29.07.2022, which the assessee contends is barred by limitation under Section 149 of the Income Tax Act, 1961, citing the Supreme Court judgment in Union of India vs. Rajeev Bansal. The timeline indicates an initial notice under the old law on 28.06.2021, a deemed notice under Section 148A(b) on 01.06.2022, the assessee's reply on 18.06.2022, and the final notice under Section 148 on 29.07.2022.

What were the issues?

1. Whether the notice issued under Section 148 of the Income Tax Act, 1961, dated 29.07.2022, for Assessment Year 2014-15, is barred by limitation under Section 149 of the Act, in light of the Supreme Court's decision in Union of India vs. Rajeev Bansal and the application of the Taxation and Other Laws (Relaxation of Certain Provisions) Act, 2020 (TOLA)? Assessee's Contention: The assessee argues that the notice issued under Section 148 is time-barred. They rely on the Supreme Court judgment in Union of India vs. Rajeev Bansal, which interpreted the interplay between the new reassessment regime, TOLA, and the limitation periods. The assessee highlights that the surviving period for issuing the notice was limited, and the notice dated 29.07.2022 was issued beyond this extended period. Revenue's Contention: The judgment does not record any specific arguments from the Revenue on this issue.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 147,Section 148,Section 148A,Section 149,Section 151

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “D” BENCH, KOLKATA

Before: Shri Rajesh Kumar & Shri Pradip Kumar Choubey

Per Pradip Kumar Choubey, Judicial Member:

This appeal filed by the assessee is directed against the order dated 17.12.2025 of the Office of the National Faceless Appeal Centre (NFAC), Delhi passed under Section 143(3)r.w.s147 of the Assessment Year 2014-15 of the Income-Tax Act, 1961 (hereinafter referred to as “the Act”).

2.

The Ld. AR challenges the very impugned order by taking a legal ground that th

The order continues below.

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