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Facts
The assessee, Woodland Retails Private Limited, filed its return for AY 2015-16. The case was reopened u/s 147 by issuing a notice u/s 148 on 23.06.2021. The assessee challenged this notice, arguing it was barred by limitation and that the benefit of TOLA was not available for AY 2015-16.
Held
The Tribunal held that the notice issued u/s 148 on 23.06.2021 for AY 2015-16 was barred by limitation. Citing Supreme Court decisions (Rajeev Bansal and Ibibo Group Pvt. Ltd.), it ruled that the relaxation granted by TOLA from 01.04.2021 to 30.06.2021 does not apply to AY 2015-16, thereby quashing the reopening proceedings.
Key Issues
Whether the reopening notice under Section 148 for AY 2015-16, issued on 23.06.2021, is barred by limitation, considering the applicability of TOLA.
Sections Cited
Section 147, Section 148, Section 148A(b), Section 148A(d)
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Income Tax Appellate Tribunal, “D” BENCH, KOLKATA
Before: SHRI DUVVURU RL REDDY, VP & SHRI RAJESH KUMAR, AM
This is an appeal preferred by the assessee against the order of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 09.12.2024 for the AY 2015-16.
At the outset, the ld. Counsel for the assessee submitted that the notice issued u/s 148 of the Act on 23.06.2021 is barred by limitation in consonance with ratio laid down by the Hon'ble apex court in the case of Union of India and other Vs. Rajeev Bansal [2024] 469 ITR 46 (SC), dated 03.10.2024 (SC).
The Ld. Counsel vehemently submitted before us that the notice issued u/s. 148 of the Act is barred by limitation as benefit of TOLA is not available to the assessment year 2015-16. The assessee relied on in defense of his arguments on the decision of Hon’ble Apex Court in the case of Rajeev Bansal (Civil Appeal No.8629 of 2024, reported in 167 taxmann.com 70 (SC) pronounced on 03.10.2024 which has been followed by Hon’ble Delhi Court in the case of Ibibo Group Pvt. Ltd. Vs. ACIT in WP(C) No. 17639/2022 order dated 13.12.2024 wherein it has been held that reopening of assessment for 2015-16 is not permissible in the extended period as per TOLA on and from 01.04.2021. The said decision has been followed by the Coordinate Bench in the case of Orbit Financial Capital, ITA No. 5812/M/2024. The ld. AR submitted that even the Coordinate Bench in the case of Coplama Products Pvt. Ltd. in pronounced on 31.01.2025 has followed the said decision. Thereafter, the Rajasthan High Court in WP No. 3667 of 2023 vide its order dated 27.01.2025
After hearing the rival contentions and perusing the material available on record, we find that undisputedly, the notice u/s. 148 of the Act was issued on 23.06.2021 which falls beyond the period of limitation as the relaxation granted by TOLA w.e.f. 01.04.2021 to 30.06.2021 is not available in the impugned assessment year as has been held in the case of Rajeev Bansal(supra) by the Hon’ble Apex Court and thereafter the said decision has been followed in the case of Ibibo Group Pvt. Ltd. (supra). We note that the Hon’ble Delhi High Court in the case of Ibibo Group Pvt. Ltd. (supra) held that the reopening of assessment for Ay 2015-16 is not permissible in the extended period as per TOLA on and from 01.04.2021. We also note that Hon’ble Rajasthan High Court in WP No. 3667 of 2023 dated 27.01.2025 has taken a similar view. Considering the facts of the assessee’s case in the light of the aforesaid decisions, we are inclined to hold that the reopening of assessment is barred by limitation and is accordingly quashed.
In the result, the appeal of the assessee is allowed.
Order pronounced in the open court on 04.11.2025.