VDR CONSULTANTS PVT. LTD., KOLKATA,KOLKATA vs. ITO, WARD 11(1), KOLKATA, KOLKATA

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ITA 338/KOL/2025Status: DisposedITAT Kolkata19 May 2025AY 2015-16Bench: SHRI RAJESH KUMAR (Accountant Member), SHRI PRADIP KUMAR CHOUBEY (Judicial Member)6 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal found that the reassessment notice, though dated 31.03.2021, was signed and served on 02.04.2021. This was deemed invalid and bad in law as it did not comply with the procedure laid down by the Supreme Court in *Union of India Vs. Ashish Agrawal* for notices issued between 01.04.2021 and 30.06.2021, nor with relevant CBDT instructions and clarifications. Consequently, the reopening of assessment and the framed assessment were quashed.

What were the facts?

The assessee filed its return of income for AY 2015-16, which was processed under Section 143(1). Subsequently, the case was reopened under Section 147/148 based on information about accommodation entries, leading to an addition of ₹88.40 lakhs for unsecured loans. The Ld. CIT(A) upheld the assessment.

What were the issues?

Whether the reassessment notice under Section 148, dated 31.03.2021 but served on 02.04.2021, was valid, considering the Supreme Court's directives in *Ashish Agrawal* and CBDT instructions for notices issued post-01.04.2021.

Which sections of the Income-tax Act were involved?

Section 147,Section 148,Section 143(1),Section 119,Section 151

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

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Income Tax Appellate Tribunal, “D” BENCH, KOLKATA

For Appellant: Shri Devesh Poddar, AR
For Respondent: Ms. Ranu Biswas, DR
Hearing: 13.05.2025Pronounced: 19.05.2025

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 24.12.2024 for the AY 2015-16.

2.

The issue raised in ground no.1 is a legal issue and against the initiation of reassessment proceeding u/s 148 of the Income-tax Act, 1961 (the Act) vide notice dated 31.03.2021, which was served upon the assessee on 02.04.2021 and accordingly barred by limitation.

3.

The facts in brief are that the assessee filed the return of income on 29.09.2015, declaring total income of ₹50,08,024/-, which was processed u/s 143(1) of the Act. Thereafter, the ld. AO received

4.

In the appellate proceedings, the ld. CIT (A) dismissed the appeal of the assessee by simply upholding the order of the ld. Assessing Officer.

5.

The ld. AR vehemently submitted before us that the notice issued u/s 148 of the Act dated 31.03.2021, was singed on 02.04.2021, as is apparent from the notice itself and issued to the assessee by e-mail, which was also served on 02.04.2021. The ld. AR submitted that the said notice is invalid and bad in law as the assessment has not been framed as per the direction of Hon'ble Apex court in case of Union of India Vs. Ashish Agrawal 444 ITR 1 (SC), which laid down the procedure to be followed for assessment in cases of notice u/s 148 of the Act issued between 01.04.2021 to 30.06.2021. As such the order passed is bad in law and may be quashed. The ld. AR submitted that the notice dated 31.03.2021, is bad in law to the extent that same is not in terms of instruction issued by CBDT dated 04.03.2021 and clarification dated 12.03.2021, which specified the potential cases for reopen u/s 148 of the Act.

6.

The ld. DR on the other hand relied on the orders of authorities below.

8.

We note that in this case the ld. AO has not follow the procedure laid down by the Hon'ble Apex Court in the case of Union of India Vs. Ashish Agrawal(supra) which prescribed the procedure to be followed

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9.

Considering all these facts and also legal infirmity in issuing the notice u/s 148 of the Act, we are inclined to quash the reopening of assessment as well as the assessment framed by the ld. Assessing Officer.

Order pronounced in the open court on 19.05.2025.

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