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Facts
The assessee filed an appeal against the order of the CIT(A) for AY 2015-16. The assessee's counsel submitted that the proceedings initiated under section 148 notice dated 31.03.2021 were time-barred.
Held
The Tribunal held that notices issued on or after 01.04.2021 for AY 2015-16 were time-barred, referencing Supreme Court decisions and the concession made by the revenue. The notice dated 31.03.2021, though validated by the Ashish Agarwal case, was considered beyond the period prescribed.
Key Issues
Whether the notice issued under Section 148 of the Income Tax Act for AY 2015-16, dated 31.03.2021, is barred by limitation.
Sections Cited
148, 149(1)(a)
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Income Tax Appellate Tribunal, DELHI BENCH, ‘E’: NEW DELHI
Before: SHRI C.N. PRASAD & SHRI NAVEEN CHANDRA
Date of Hearing 18.11.2025 Date of Pronouncement 14.01.2026 ORDER
PER C.N. PRASAD, JM,
This appeal is filed by the assessee against the order of the Ld.Commissioner of Income Tax (Appeals)/ NFAC, Delhi vide order dated 30.03.2021 for the A.Y. 2015-16.
The Ld. Counsel for the assessee at the outset submitted that proceedings initiated under notice dated 31.03.2021 u/s.148 of the Act for the A.Y.2015-16 are time barred as per section 149(1)(a) of the Act. The Ld. Counsel for the assessee referring to the decision of the Hon’ble Supreme court in the case of Union of India and Others Vs. Rajeev Bansal 469 ITR 46, submitted that as a matter of fact the revenue conceded that for the A.Y. 2015-16 all notices issued on after 01.04.2021 will have to be dropped as they will not fall for completion during the period prescribed under Taxation and other laws (Realizations and Amendment of Certain provision) Act 2010.
The Ld. Counsel for the assessee, therefore, stated that the notice dated 31.03.2021 which was validated by virtue of the decision of the Hon’ble Supreme Court in the case of Union of India and others Vs. Ashish Agarwal cannot survive since the TOLA provision do not apply for the A.Y.2015-16. We find force in the submissions of the Ld. Counsel for the assessee. Since, the revenue has conceded that for the A.Y.2015-16, all notices issued on or after 01.04.2021 will have to be dropped the notice issued in the present case notice dated 31.03.2021 which was issued after 01.04.2021 and was validated by the virtue of the decision of the Hon’ble Supreme Court in the case of Ashish Agarwal, the proceedings fall for completion. Thus, we hold that the notice dated 31.03.2021 issued u/s.148 of the Act and is barred by limitation and consequently the assessment made pursuant to such notices is void ab initio and the same is quashed.
In the result, the appeal of the assessee is allowed.
Order pronounced in the open court on 14.01.2026.