LALIT GARG,DELHI vs. INCOME TAX OFFICER, DELHI

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ITA 7193/DEL/2026Status: DisposedITAT Delhi07 October 2026AY 2017-183 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the impugned reopening notice under Section 148, dated 26.07.2022, was indeed time-barred. The Judicial Member, after perusing the case file and hearing both parties, found merit in the assessee's contention. The Tribunal relied on the factual matrix presented by the assessee, including the detailed timeline of events and the relevant legal provisions and judicial pronouncements, particularly the Supreme Court's directions concerning the issuance of reopening notices. The reasoning was that the Assessing Officer had failed to comply with the stipulated time limits for initiating reassessment proceedings. Consequently, the Tribunal quashed the reopening proceedings. All other issues on merits were rendered academic as a result of this decision. The appeal was allowed on this preliminary ground.

What were the facts?

The assessee, Lalit Garg, filed an appeal for Assessment Year 2017-18 against an order passed by the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi. The proceedings were initiated under Section 147 read with Section 144B of the Income Tax Act, 1961. The appeal was filed with a delay of 399 days, which the Tribunal condoned. The core of the dispute revolves around the validity of the notice issued for reopening the assessment. The assessee contended that the notice under Section 148, dated 26.07.2022, was time-barred, rendering the reassessment proceedings non-est in law. The assessee provided a detailed timeline of events, including the issuance of the initial Section 148 notice, the Supreme Court's judgment in Ashish Agarwal, the subsequent show-cause notice under Section 148A(b), the assessee's reply, and the final order under Section 148A(d) and the Section 148 notice.

What were the issues?

1. Whether the notice under Section 148 of the Income Tax Act, 1961, dated 26.07.2022, issued for Assessment Year 2017-18, is time-barred and consequently renders the reassessment proceedings non-est in law, turning on the interpretation of Section 147 and Section 148 of the Act, as amended and interpreted by the Supreme Court in Union of India vs. Rajeev Bansal and Ashish Agarwal. Assessee's Contention: The assessee argued that the Section 148 notice dated 26.07.2022 was time-barred. They relied on a date chart and the Supreme Court's decision in Union of India vs. Rajeev Bansal, asserting that the reassessment proceedings were invalid due to non-compliance with the statutory time limits and directions regarding reopening notices. The assessee highlighted the various exclusions and time limits applicable under the Act and the Taxation and other Laws (Relaxation of Certain Provisions) Ordinance, 2020. Revenue's Contention: The judgment does not record any specific arguments made by the Revenue on this issue.

Which sections of the Income-tax Act were involved?

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

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI

Before: SHRI SATBEER SINGH GODARA

आयकर अपीलीय अिधकरण, िद�ी पीठ�, नई िद�ी INCOME TAX APPELLATE TRIBUNAL, DELHI BENCHES, NEW DELHI BENCH: SMC BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER ITA 7193/DEL/2026 (िनधा�रण वष�/Assessment Year: 2017-18) LALIT GARG INCOME TAX OFFICER 238, POCKET - 4, SECTOR - A 9, E-2 BLOCK, CIVIC CENTRE, DDA FLAT, NARELA, Vs. MINTO ROAD DELHI-110040 DELHI-110040 अपीलाथ� / Appellant ��थ� / Respondent

Permanent Account Number of Assessee: AUSPG 1095 M

Sh. Abhinav Jain, Adv, अपीलाथ� �ारा/Appellant represented by: Sh. Lakshya Budhiraja, CA (VC) & Sh. Manish Goel, CA (VC) ��थ� �ारा/Respondent represented by: Sh. Manoj Kumar, Sr. DR

सुनवाई की तारीख / Date of conclusion of hearing: 03-Sep-2026 घोषणा की तारीख / Date of pronouncement: 03-Sep-2026 आदेश / ORDER PER SATBEER SINGH GODARA, JUDICIAL MEMBER: This assessee’s appeal for assessment year 2017-18, arises against the Commissioner of Income Tax (Appeals)/ National Faceless Appeal Centre (NFAC), Delhi [in short, the “CIT(A)/NFAC”], order no. and DIN: ITBA/NFAC/S/250/2024-25/1074845928(1), dated 21.03.2025 involving proceedings u/s 147 r.w.s 144B of the Income Tax Act 1961 (hereinafter referred to as ‘the Act’).

Heard both the parties. Case file perused.

ITA 7193/DEL/2026 LALIT GARG

2.

For the reasons stated in the assesses’s condonation averments, delay of 399 days in filing of instant appeal is hereby condoned in light of Collector, Land & Acquisition vs. Mst. Katiji & Others (1987) 167 ITR 471 (SC).

3.

Coming to the first and foremost legal issue arises between the parties, the assessee’s case before the Tribunal is that impugned section 148 notice issued by the learned Assessing Officer dated 26.07.2022 is very much a time barred and relevant proceedings initiated in his case as non-est in law. In this regard he placed his reliance on the decision of the Hon'ble Supreme Court in Union of India vs. Rajeev Bansal, [2024] 469 ITR 46 (SC) and files the dates chart; reading as under: Date Events & Particulars At Pg/PB 29.06.2021 Notice under section 148 of the Act for A.Y. 2017-18 (as per 1 erstwhile reassessment provisions) 04.05.2022 Judgment of the SC in Ashish Agarwal (supra) 2.14 [Notice(s) u/s 148 of the unamended Act issued between 01.04.2021 to 30.06.2021 deemed to be construed as show- cause notice u/s 148A(b) of the Act] 21.05.2022 Show-cause notice (SCN) u/s 148A(b) of the Act, conveying 15-16 reasons for reopening and providing underlying material/documents granting 2 weeks time till 06.06.2022 for filing reply 06.06.2022 Reply filed by Petitioner in response to SCN u/s 148A(b) of 17 the Act. Two weeks’ time to file reply elapsed from issuance of SCN u/s 148A(b) of the Act (excluded in terms of 3rd Proviso to Section 149 of the Act) 07.06.2022 Surviving time limit under the Act read with the Taxation and 18.28 other laws (Relaxation of Certain Provisions) Ordinance, 2020 (‘TOLA’) read with Notification No.20/221 (31 March 2021) and Notification No.38/2021 (27 April 2021) expires (since Section 148 notice under the erstwhile law is dated 30.06.2021 and 1 balance day was left with the AO) 14.06.2022 Further additional period of 7 days elapsed (excluded in terms 29-30 of 4th proviso to Section 149 of the Act) Hence, after all exclusions-surviving time expires on 14.06.2022 26.07.2022 Order passed u/s 148A(d) of the Ac 31-33 26.07.2022 Notice issued u/s 148 of the Act 34-35 11.05.2023 SCN issued u/s 147 of the Act 36-42 28.05.2023 Order u/s 147 of the Act 43-55

ITA 7193/DEL/2026 LALIT GARG

4.

That being the case, the Revenue could hardly dispute that the learned Assessing Officer has failed to comply their lordship’s directions regarding issuance of such a reopening notice. I thus, hold in this factual that the impugned reopening deserves to be quashed in foregoing terms since time barred. Ordered accordingly.

All remaining pleadings between the parties on merits stand rendered academic.

5.

This assessee’s appeal is allowed.

Order pronounced in the open court on 03.09.2026.

Sd/- SATBEER SINGH GODARA JUDICIAL MEMBER Delhi Dated: 07.10.2026 Copy to: LALIT GARG, 238, POCKET - 4, SECTOR - A 9, DDA FLAT, 1 NARELA, DELHI-110040, DELHI

INCOME TAX OFFICER, 2 E-2 BLOCK, CIVIC CENTRE, MINTO ROAD, DELHI-110040, DELHI

3 THE PCIT / CIT, 4 THE D.R., ITAT, DELHI BENCH 5 GUARD FILE

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