VIJAY NARAINDAS BRIJWANI,KALYAN vs. ASSESSING OFFICER, KALYAN
IN THE INCOME-TAX APPELLATE TRIBUNAL “F” BENCH,
MUMBAI
BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER
&
SHRI PRABHASH SHANKAR, ACCOUNTANT MEMBER
Vijay Naraindas
Brijwani, Flat No. 1302,
Mohan
Pride,
IRIS,
Khadakpada,
Kalyan
–
421301, Maharashtra v/s.
बनाम
Assessing Officer, Income Tax
Office,
Ward
–
2,
Kalyan
Juri ictional Assessing Officer,
Mohan
Plaza,
Khadakpada,
Kalyan-400051, Maharashtra
स्थायी लेखा सं./जीआइआर सं./PAN/GIR No: AHWPB4057H
Appellant/अपीलार्थी
..
Respondent/प्रतिवादी
Appellant by :
Shri M Subramaniam, AR
Respondent by :
Ms. Kavitha Kaushik (Sr. DR)
Date of Hearing
08.05.2025
Date of Pronouncement
19.05.2025
आदेश / O R D E R
PER PRABHASH SHANKAR [A.M.] :-
The present appeal arising from the appellate order dated
23.10.2024 is filed by the assessee against the order passed by the Learned Commissioner of Income-tax (Appeals)/National Faceless
Appeal Centre, Delhi [hereinafter referred to as “CIT(A)”] pertaining to assessment order passed u/s. 147 r.w.s. 144 of the Income-tax Act, 1961
[hereinafter referred to as “Act”] dated 12.05.2023 for the Assessment
Year [A.Y.] 2015-16. P a g e | 2
A.Y. 2015-16
Vijay Naraindas Brijwani
As per the grounds of appeal on record, the assessee has claimed that the assessment order is barred by limitation and hence, is bad in law. Further, the ld.CIT(A) erred in upholding the addition of Rs. 1,06,38,592/- made by the AO as unexplained income u/s. 69A of the Act. 3. The brief of the case is that the original return of income was e- filed declaring total income of Rs.1,76,260/- and notice u/s. 148 of the Act was issued on 22.04.2021. The return of income in response to notice u/s 148 of the Act was e-filed on 31.05.2021 declaring total income of Rs.1,81,550/-. As per hon’ble Supreme Court order in the case of Union of India vs. Ashish Agarwal reassessment proceedings were reinitiated and notice u/s. 148A(b) of the Act was issued on 27.05.2022. Order u/s.148A(d) was passed and served on 10.07.2022. Consequential notice u/s. 148 of the Act was issued on 10.07.2022. The return of income in response to notice u/s 148 of the Act was e-filed on 31.08.2022 declaring total income of Rs.1,81,550/-. The AO treated the entire credits in bank account with Renuka Mata Multi State Urban Co- operative Credit Society Ltd of Rs. 1,06,38,592/- as unexplained income u/s.69A and added the same to the total income. Assessment u/s.147 r.w.s. 144B of the Act was completed determining the assessed income at P a g e | 3 A.Y. 2015-16
Vijay Naraindas Brijwani
Rs. 1,08,20,140/-. The assessment order was appealed against to the ld.CIT(A), who upheld the addition made by the A.O.
4. We take up first the ground which is legal in nature relating to the validity of the assessment order, since the assessee has challenged the very basis of the assessment order. Before us, the ld.AR has argued that the proceedings u/s 148 of the Act are barred by time limitation in view of the ratio laid down by the hon’ble Supreme Court in the case of Rajeev Bansal. A chronology of notices and proceedings in a tabular form as submitted by him is reproduced as below:
Sr.
No.
Date
Event
1. 23.03.16
Return of income declaring an income of Rs. 1,76,260/- filed
2. Return was processed and accepted u/s 143(1) of the act.
3. 22.04.21
Notice u/s 148 issued.
4. 31.05.21
Return of income declaring an income of Rs. 1,81,550/- filed in response to the notice issued u/s148 of the act.
5. 27.05.22
Proceedings u/s 148A(b) of the act commenced.
6. 10.07.22
Order u/s 148A(d) of the Act passed
7. 10.07.22
Notice u/s 148 of the Act issued
8. 31.08.22
Return of income declaring an income of Rs. 1,81,550/- filed in response to the notice issued u/s 148 of the act.
9. 27.12.22
27.12.22
27.01.23
Notices of hearing u/s 143(2) & 142(1) were issued.
10. 25.04.23
Show cause notice issued.
11. 27.04.23
Reply to show cause notice filed enclosing therewith all details.
12. 12.05.23
Assessment order u/s 147 r.w.s. 144B passed determining the income at Rs. 1,08,20,140/-.
P a g e | 4
A.Y. 2015-16
Vijay Naraindas Brijwani
07.06.23 Appeal filed to the C.I.T. (A) 14. 23.10.24 C.I.T. (A) passes an order dismissing the appeal
In the relevant assessment year, reassessment notice u/s 148 of the Act had been issued on 10.07.2022 which is matter of record and there is no dispute on it. In this regard, the ld.AR has claimed that in view of the departmental stand taken by the ld.Counsel of the Revenue before the hon’ble Supreme Court in the Rajeev Bansal case, the proceeding are liable to be invalid. The ld.DR has not controverted his contentions in any manner. It may be stated here that in the case of Union of India and Others v. Rajeev Bansal(Union of India v. Rajeev Bansal [2024] 167 taxmann.com 70 (SC), the hon’ble Supreme Court considered the manner of applicability of the provisions of Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 [TOLA]. During the said proceedings, it was conceded on behalf of the Revenue that TOLA was not applicable for reopening the assessments for AY 2015-16. The said concession was recorded in paragraph 19(f) of the said decision. Paragraphs 19 (e) and 19(f) are relevant and are set out below: - "(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 the TOLA applies to the entire Income Tax Act, including Sections 149 and 151 of the new regime. Once the first proviso to Section P a g e | 5 A.Y. 2015-16
Vijay Naraindas Brijwani
149(1)(b) is read with TOLA, then all the notices issued between 1 April 2021 and 30 June 2021 pertaining to the assessment years 2013-2014, 2014-2015, 2015-
2016, 2016-2017, and 2017-2018 will be within the period of limitation as explained in the tabulation below:………………
(f) The Revenue concedes that for the assessment year 2015-2016, 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 the TOLA."
1 In this case, the notice u/s 148 of the Act was earlier issued on 22.04.2021 which was treated as show cause notice u/s 148A(b) of the Act but the order u/s 148A(d) has been passed on 10.07.2022. As per the old provisions of reassessment, the notice u/s 148 of the Act after complying with the procedural requirement as per the amended provisions ought to have been issued by 31.03.2022 after excluding the period granted to file the reply in response to the notice u/s 148A(b) of the Act. Since the limitation for issue of notice u/s 148 of the Act expired on 31.03.2022 under the old regime and for AY 2015- 16 the assessment order the notice u/s 148 has been issued on 10.07.2022, the benefit of TOLA for extending the limitation for issue of notice u/s 148 of the Act will not be available to the Revenue. Therefore, having considered the above facts and the decision relied upon by the ld.AR, we are of the considered view that the notice issued under section 148 of the Act on 10.07.2022 for AY 2015-16 is barred by limitation period specified under section 149 of the Act. Accordingly, notice is void ab initio and P a g e | 6 A.Y. 2015-16
Vijay Naraindas Brijwani bad in law. Therefore, the same is quashed. Consequently, the re- assessment proceeding and assessment order passed under section 147 r.w. section 144B of the Act are also quashed.
6. Since the assessment order has been quashed, we do not find any reason to adjudicate other ground of appeal on merits of the addition made. However, the ground in this regard is kept open.
7. In the result, the appeal is allowed.
Order pronounced in the open court on 19.05.2025. AMIT SHUKLA
PRABHASH SHANKAR
(न्याययक सदस्य /JUDICIAL MEMBER)
(लेखाकार सदस्य/ACCOUNTANT MEMBER)
Place: म ुंबई/Mumbai
ददनाुंक /Date 19.05.2025
Lubhna Shaikh / Steno
आदेश की प्रयियलयि अग्रेयिि/Copy of the Order forwarded to :
1. अपीलार्थी / The Appellant
2. प्रत्यर्थी / The Respondent.
3. आयकर आयुक्त / CIT
4. विभागीय प्रविविवि, आयकर अपीलीय अविकरण DR, ITAT,
Mumbai
P a g e | 7
A.Y. 2015-16
Vijay Naraindas Brijwani
गार्ड फाईल / Guard file.
सत्यावपि प्रवि ////
आदेशानुसार/ BY ORDER,
उि/सहायक िंजीकार (Dy./Asstt.