MANUBHAI KESHAVLAL & CO.,VISNAGAR vs. THE ITO, WARD-1, PATAN
Income Tax Appellate Tribunal, “SMC” BENCH, AHMEDABAD
Before: DR. B.R.R. KUMAR, VICE-Ms SUCHITRA KAMBLE
PER DR. B.R.R. KUMAR, VICE-PRESIDENT:-
The captioned appeal has been filed by the assessee against the order passed by the Ld.
Commissioner of Income
Tax
(Appeals)/National Faceless Appeal Centre, Delhi, vide order dated
04.07.2025 relevant to the Assessment Year 2016-17. 2. The assessee has raised the following grounds of appeal:
1. Notice issued u/s.148 as well as consequential reassessment order passed u/s.147 are bad in law as the notice is issued beyond three years from the end of assessment year without fulfilling requisite conditions.
Asst. Year : 2016-17
- 2–
The Ld.CIT(A) erred in law and on facts of the case in sustaining the addition of Rs.3,71,367/- on account of benefit of tour package as business income of the assessee firm u/s.28(iv). 3. The appellant craves leave to add, amend alter or delete the grounds of appeal at the time of hearing, if need arise.
The assessee submitted a detailed calculation of Surviving Period For Issuance of Notice u/s.148 of the Act, which is reproduced as below: Particulars
Reference
Date/Days
Date of original notice issued u/s 148
A 30.06.2021
Extended time limit to issue notice u/s 148
under TOLA
B
30.06.2021
Date of letter supplying information/material to the assessee as per the direction of the Hon'ble Supreme
Court in UOI v. Ashish Agarwal
C
26.05.2022
Last date to file reply for the assessee as per the above letter
D
06.2022
Date of filing reply by the assessee
E
06.2022
Surviving time period for issuing new notice u/s 148 (Third Proviso to section 149(1) provides minimum 7 days)
F=(B-A) or 7
days, whichever is higher
7 days
Surviving time limit for issuing new notice u/s 148
G=D or E, whichever is later) + G
06.2022
Date of new notice issued u/s 148. H
07.2022 Asst. Year : 2016-17 - 3–
Note: Since the new notice u/s 148 is issued beyond the surviving period as explained by the Hon'ble Supreme Court in the case of UOI v. Rajeev Bansal
-(2024) 469 ITR 46 (SC), the notice u/s 148 as well as the consequential reassessment order u/s 147 are bad in law. Reliance is further placed on the judgment of the Hon'ble Gujarat High Court in the case of Uday Dilipbhai
Shah v. ITO in SCA No. 24695 of 2022. 4. The Revenue could not controvert the evidence submitted by the assessee. Accordingly, the appeal of the assessee is allowed, and the assessment is held to be void ab initio.
In the result, the appeal of the assessee is allowed.
The order is pronounced in the open Court on 08.10.2025. (SUCHITRA KAMBLE)
VICE-PRESIDENT
()
Ahmedabad; Dated 08.10.2025
MV
आदेश की Ůितिलिप अŤेिषत/Copy of the Order forwarded to :
अपीलाथŎ / The Appellant 2. ŮȑथŎ / The Respondent. 3. संबंिधतआयकरआयुƅ / Concerned CIT 4. आयकर आयुƅ(अपील) / The CIT(A)- 5. िवभागीय Ůितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाडŊ फाईल / Guard file.
आदेशानुसार/ BY ORDER,सहायक पंजीकार (Dy./Asstt.