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Facts
The assessee appealed against the CIT(A)'s order for AY 2016-17, where the assessment was framed under Section 147 read with Section 144B based on a Section 148 notice issued on 20.07.2022. The assessee contended that the Section 148 notice was barred by limitation, citing Supreme Court judgments in Ashish Agarwal and Rajiv Bansal.
Held
The Tribunal determined that based on the Supreme Court's decision in Rajiv Bansal, the extended time limit for issuing the Section 148 notice for AY 2016-17 was 13.06.2022. As the notice was issued on 20.07.2022, it was beyond the limitation period. Therefore, the Section 148 notice and the consequent assessment order were quashed.
Key Issues
Whether the notice issued under Section 148 of the Income Tax Act, 1961 for Assessment Year 2016-17 was barred by limitation, thereby rendering the subsequent assessment order invalid.
Sections Cited
147, 148, 144B, 148A(b), 148A(d), 149, 151(i)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘SMC’ BENCH, KOLKATA
Before: SHRI DUVVURU RL REDDY
(�नधा�रण वष� / Assessment Year : 2016-2017) Iva Narayan Vs ITO Ward-3(1), Malda 2B, Vishnu Niwas, 220 NSC Bose Road, Kolkata West Bengal-700047 PAN No. :AADCB 5095 Q (अपीलाथ� /Appellant) .. (��यथ� / Respondent) �नधा�रती क� ओर से /Assessee by : Shri Akash Ojha, AR राज�व क� ओर से /Revenue by : Shri Mrinmay Basak, Sr. DR सुनवाई क� तार�ख / Date of Hearing : 13/10/2025 घोषणा क� तार�ख/Date of Pronouncement : 21/11/2025 आदेश / O R D E R The present appeal is directed at the instance of assessee against the order of ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi, dated 14.05.2025 passed for Assessment Year 2016-2017.
At the outset, ld. AR submitted that the assessment framed by the AO u/s.147 r.w.s.144B of the Act is not sustainable as the notice issued u/s.148 of the Act is barred by limitation. The ld.CIT(A) also without considering the same dismissed the appeal of the assessee. It was the submission of the ld.AR that notice u/s.148 of the Act was issued on the assessee on 20.07.2022. Ld. AR drew my attention to notice issued u/s.148 of the Act, copy of which has been filed at page 8 of the paper book. Ld. AR further submitted that the impugned assessment year is A.Y.2016-2017. It was the submission that notice issued u/s.148 of the Act was issued as a consequence of the judgment of the Hon’ble Supreme Court in the case of Ashish Agarwal, reported in (2022) 444 ITR 1(SC). It was the submission that the decision of the Honourable Supreme Court in the case of Ashish Agarwal (supra) has been clarified in the decision of Hon’ble Supreme Court in the case of Rajiv Bansal, reported in [2024] 167 taxmann.com 70 (SC)/[2024] 469 ITR 46 (SC). In view of the decision of the Hon’ble Supreme Court in the case of Rajiv Bansal, referred to supra, the notice issued u/s.148 of the Act as barred by limitation and is liable to be quashed and in consequence thereof the assessment order so also the order passed by the ld. CIT(A) are liable to be quashed. Ld. AR further drew my attention to page 1 of the paper book wherein the limitation table has been brought out. The same reads as follows :-
3. In reply, ld.Sr. DR vehemently supported the order of the ld. AO and ld. CIT(A).
I have considered the rival submissions of both the parties and perused the material available on record. On perusal of the facts of the present case it is clear that the period excluded as per the decision of the Hon’ble Supreme Court in the case of Rajeev Bansal, referred to supra, is 28.06.2021 to 08.06.2022. Consequent to the same the time limit for issuance of the notice u/s.148 of the Act in the impugned appeal would be 13.06.2022. However, as it is noticed that the notice has been issued only on 20.07.2022, therefore, the same is barred by limitation. Consequently, notice u/s.148 of the Act is held to be barred by limitation and the same stands quashed. Accordingly, the assessment order passed as a consequence of said notice issued u/s.148 of the Act, also stands quashed. Thus, the appeal of the assessee is allowed.
In the result, appeal of the assessee is allowed. Order pronounced in the open court on 21/11/2025. Sd/- (DUVVURU RL REDDY) उपा�य� / VICE PRESIDENT �दनांक Dated 21/11/2025 Prakash Kumar Mishra, Sr.P.S. आदेश क� ��त�ल�प अ�े�षत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant- ��यथ� / The Respondent- 2. आयकर आयु�(अपील) / The CIT(A), 3. आयकर आयु�त / CIT 4. 5. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, कोलकाता / DR, ITAT, Kolkata 6. गाड� फाईल / Guard file.