Loading judgment…
Facts
The assessee filed a return for AY 2015-16, declaring nil income. Subsequently, a notice under Section 148 was issued on 06.04.2021, followed by a notice under Section 148A(b) on 23.05.2022 and another notice under Section 148 on 29.07.2022. The assessee contended that the reopening notice dated 29.07.2022 was time-barred for AY 2015-16 as the relaxation under TOLA was not applicable for that assessment year, relying on the Supreme Court's Rajeev Bansal decision.
Held
The Tribunal held that the notice under Section 148 issued on 29.07.2022 was beyond the period of limitation. It observed that the TOLA relaxation was not available for AY 2015-16 as per the Supreme Court's decision in Rajeev Bansal and other High Court/Tribunal decisions. Consequently, the reopening of assessment for AY 2015-16 was quashed as time-barred.
Key Issues
Whether the reopening of assessment for AY 2015-16 initiated by a notice under Section 148 dated 29.07.2022 is barred by limitation, given the non-applicability of TOLA relaxation for that assessment year.
Sections Cited
147, 148, 148A(b), 148A(d)
AI-generated summary — verify with the full judgment below
Detected automatically from the text. The count shows how many other judgments on BharatTax rely on the same authority.
Income Tax Appellate Tribunal, “D” BENCH, KOLKATA
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 12.03.2025 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 29.07.2022 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 has taken the similar view. The Ld. AR, therefore, prayed that the same may kindly be quashed.
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 29.07.2022 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 27.10.2025.