SKF INDIA LIMITED ,MUMBAI vs. DCIT, 4(3)(1), , MUMBAI

In its appeal, the assessee has raised the ground, inter alia, challenging the initiation of re-assessment proceedings under section 147 of the Act. Since this is a juri ictional issue, which goes to the root of the matter, we are considering the same at the outset. During the hearing, the learned Authorized Representative (“learned AR”) submitted that the notice issued under section 148 of the Act in the present case is beyond the limitation period specified under section 149(1) of the Act, and thus, the re-assessment order passed under section 147 read with section 144C(13) read with section 144B of the Act is void ab initio.

The brief facts of the case pertaining to this issue, as emanating from the record, are: The assessee is a part of the global AB SKF Group, and is engaged in providing automotive and industrial engineered solutions. For the year under consideration, the assessee filed its return of income on 29/11/2015, declaring a total income of Rs. 290,06,99,550. The return filed by the assessee was selected for scrutiny, and vide order dated 25/10/2019 passed under section 143(3) read with section 144C(13) of the Act, the total income of the assessee was assessed at Rs. 360,97,37,019. Subsequently, on the basis of the information in the possession of the Juri ictional Assessing Officer, proceedings under section 147 of the Act were initiated in the case of the assessee and a notice under section 148 of the Act was issued on 12/04/2021. 4. Thereafter, in view of the decision of the Hon’ble Supreme Court in Union of India vs. Ashish Agrawal, reported in [2022] 444 ITR 1 (SC), the original notice issued under section 148 on 12/04/2021 was deemed to be issued 3

After rejecting the objections filed by the assessee, an order under section 148A(d) of the Act was passed on 29/07/2022, declaring that it is a fit case for the issuance of a notice under section 148 of the Act. On the very same date, i.e. on 29/07/2022, a notice under section 148 of the Act was issued by the Juri ictional Assessing Officer. The draft assessment order was passed under section 144C(1) of the Act, assessing the total income of the assessee at Rs. 342,36,42,560. In compliance with the directions issued by the learned DRP under section 144C(5) of the Act, the final assessment order, under section 147 read with section 144C(13) read with section 144B of the Act, was passed on 26/03/2024. Being aggrieved, the assessee is in appeal before us.

During the hearing, the learned AR submitted that the year under consideration is assessment year 2015-16, and therefore, the limitation period available with the Assessing Officer under section 149 of the Act for issuance of notice under section 148 of the Act was till 31/03/2022, and therefore, the notice issued under section 148 of the Act on 29/07/2022 is barred by limitation. Hence, it was submitted that the entire re-assessment proceedings culminating in the order passed under section 147 read with section 144C(13) read with section 144B of the Act are void ab initio. The learned AR by placing reliance upon various judicial pronouncements, 4

We have considered the submissions of both sides and perused the material available on record. We, at the outset, find that similar issue pertaining to the challenge against notices issued under section 148 of the Act for the assessment year 2015-16 on the basis that same are beyond the limitation period prescribed under section 149 of the Act has been decided in favour of the taxpayers after noting the submission of the Revenue before the Hon’ble Supreme Court in Rajeev Bansal (supra), wherein it was conceded by the Revenue that for the assessment year 2015-16, all notices issued on or after 1st April, 2021 will have to be dropped as they will not fall for completion during the period prescribed under the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (“the TOLA”). We find that the Hon’ble Delhi High Court in Pratishtha Garg vs. ACIT, reported in (2015) 171 taxmann.com 264 (Delhi), allowed the writ petition filed by the taxpayer and set aside the notice issued under section 148 of the Act for the assessment year 2015-16, by observing as follows: - 5

In view of the aforesaid, the impugned order dated 19.07.2022 issued under Section 148(A)(d) of the Income Tax Act,1961 (hereafter the Act) as well as the notice dated 19.07.2022 issued under Section 148 of the Act in respect of AY 2015-16 are liable to be set aside. It is so directed.”

We further find that similar findings were rendered by the Hon’ble Delhi High Court in IBIBO Group Pvt. Ltd. vs. ACIT, in W.P.(C) No.17639 of 2022, vide order dated 13/12/2024. We find that in the following decisions of the 6

Therefore, it is evident that the Hon’ble Courts, consistently considering the submissions made by the Revenue before the Hon’ble Supreme Court in Rajeev Bansal (supra), have held that the re-assessment notice issued under section 148 of the Act for the assessment year 2015-16 is barred by limitation. Thus, on this limited basis alone, the notice dated 29/07/2022, issued under section 148 of the Act in the present case, is liable to be quashed, being time- barred under the provisions of the Act. We order accordingly. Consequently, the entire re-assessment proceedings and final assessment order passed under section 147 read with section 144C(13) read with section 144B of the Act are also quashed. 7

Since the relief has been granted to the assessee on the afore-noted juri ictional aspect, the other grounds raised by the assessee in its appeal are rendered academic and, therefore, are left open.

In the result, the appeal by the assessee is allowed. Order pronounced in the open Court on 16/05/2025 BIJAYANANDA PRUSETH ACCOUNTANT MEMBER SANDEEP SINGH KARHAIL JUDICIAL MEMBER