M/S SAGAR TIE UP PRIVATE LIMITED,NEW DELHI vs. ITO, WARD 1(1), KOLKATA, KOLKATA

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ITA 1507/KOL/2025Status: DisposedITAT Kolkata26 February 2026AY 2015-164 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the notice issued under section 148 of the Income Tax Act, 1961, on July 31, 2022, for AY 2015-16 is barred by limitation. The Tribunal noted that the relaxation granted by TOLA from April 1, 2021, to June 30, 2021, is not available for the impugned assessment year, as held by the Hon'ble Apex Court in the case of Rajeev Bansal. This decision was followed by the Hon'ble Delhi High Court in Ibibo Group Pvt. Ltd., which explicitly held that reopening of assessment for AY 2015-16 is not permissible in the extended period as per TOLA from April 1, 2021. The Tribunal also acknowledged similar views taken by the Rajasthan High Court and the ratio laid down in Deepak Steel & Power Ltd. Consequently, the Tribunal found the reopening of assessment to be barred by limitation and quashed the assessment framed. The operative direction was to quash the assessment.

What were the facts?

The assessee, M/s Sagar Tie Up Private Limited, filed its return of income for Assessment Year (AY) 2015-16 on September 29, 2015, declaring a total income of Rs. 71,62,550. A revised return was filed on March 28, 2016, declaring a loss of Rs. 41,489. The case was reopened based on information regarding non-genuine losses from stock exchange trading. An order under section 148A(d) was passed on July 28, 2022, followed by a notice under section 148 on July 29, 2021. A fresh notice under section 148 was issued on July 31, 2022, in consequence of the Hon'ble Supreme Court's order in Union of India & Ors. Vs. Ashish Agarwal. The assessment was framed under section 147 read with section 144 and 144B of the Income Tax Act, 1961, with an addition of Rs. 85,05,300. The assessee appealed to the National Faceless Appeal Centre, Delhi (NFAC), which dismissed the appeal. The present appeal is against the order of the NFAC dated June 18, 2025.

What were the issues?

1. Whether the notice issued under section 148 of the Income Tax Act, 1961, for AY 2015-16 is barred by limitation, considering the benefit of the Time Limit for Assessment (TOLA) is not available for this assessment year. Assessee's Contention: The assessee argued that the notice issued under section 148 is time-barred because the benefit of TOLA is not applicable to AY 2015-16. The assessee relied on the Supreme Court's decision in Union of India and other Vs. Rajeev Bansal and the Delhi High Court's decision in Ibibo Group Pvt. Ltd. Vs. ACIT, which held that reopening for AY 2015-16 is not permissible in the extended period as per TOLA from April 1, 2021. Further reliance was placed on decisions by coordinate benches in Orbit Financial Capital and Coplama Products Pvt. Ltd., and the Rajasthan High Court in WP No. 3667 of 2023, as well as the Supreme Court's decision in Deepak Steel & Power Ltd Vs CBDT. Revenue's Contention: The judgment does not record any specific contentions made by the revenue before the Tribunal regarding the limitation issue.

Which sections of the Income-tax Act were involved?

Section 139(1),Section 139(5),Section 148A(d),Section 148,Section 147,Section 144,Section 144B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “D” BENCH, KOLKATA

Before: SHRI RAJESH KUMAR, AM & SHRIPRADIP KUMAR CHOUBEY, JM

For Appellant: Shri Siddarth Agarwal, AR
For Respondent: Shri S.B. Chakraborthy, DR
Hearing: 19.01.2026Pronounced: 26.02.2026

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 18.06.2025 for the AY 2015-16.

2.

The only issue raised by the Counsel of the assessee is in respect of A.Y. 2015-16, being time barred by limitation in consonance with the decision of 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.

3.

The facts in brief are that the case of the assessee filed its return of income u/s 139(1) of the Act on 29.09.2015, declaring total income at ₹1,62,550/-. Further, the assessee has filed its revised Return of

4.

In the appellate proceedings, the ld. CIT (A) deleted the appeal of the assessee by observing and holding as under:-

“In these grounds the appellant has challenged the assumption of jurisdiction u/s 148 of the Income Tax Act. The appellant has relied upon various judgements of various courts in its favour. The AO has issued the notice u/s 148 of the Income Tax Act in pursuance of the order of the Hon. Apex Court in the case of Union of India &Ors Vs Ashish Agarwal (Civil Appeal No.3005/2002) read with instruction No. 01/2022 dated 11.05.2022 issued by CBDT. Hence, the AO has followed the decision of Hon. SC and taken prior approval from the competent authority. Hence these grounds are dismissed.”

6.

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 31.07.2022 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

7.

In the result, the appeal of the assessee is allowed.

Order pronounced in the open court on 26.02.2026.

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