M/S SAGAR TIE UP PRIVATE LIMITED,NEW DELHI vs. ITO, WARD 1(1), KOLKATA, KOLKATA
Facts
For AY 2015-16, the assessee's case was reopened based on information from "Project Falcon" about non-genuine losses of ₹85,05,300 from reversal trades in stock options. An assessment was framed u/s 147, 144, and 144B, making this addition. The CIT(A) upheld the reopening, relying on the Supreme Court's Ashish Agarwal judgment and CBDT instructions.
Held
The Tribunal held that the notice under Section 148, issued on 31.07.2022, was beyond the statutory period of limitation for AY 2015-16. It emphasized that the relaxation provided by TOLA for the period 01.04.2021 to 30.06.2021 does not apply to AY 2015-16, as per the Supreme Court's decision in Rajeev Bansal. Consequently, the reopening of assessment was deemed barred by limitation and the assessment order was quashed.
Key Issues
Whether the reopening of assessment for AY 2015-16 by a notice under Section 148 is barred by limitation, given that the relaxation under TOLA is not available for this assessment year.
Sections Cited
139(1), 139(5), 148A(d), 148, 147, 144, 144B, TOLA (Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020)
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
Per Rajesh Kumar, AM:
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.
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.
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
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.”
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
In the result, the appeal of the assessee is allowed.
Order pronounced in the open court on 26.02.2026.
Sd/- Sd/- (PRADIP KUMAR CHOUBEY) (RAJESH KUMAR) (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) Kolkata, Dated: 26.02.2026 Sudip Sarkar, Sr.PS Copy of the Order forwarded to: 1. The Appellant 2. The Respondent 3. CIT DR, ITAT, 4. 5. Guard file. BY ORDER, True Copy//
Sr. Private Secretary/ Asst. Registrar Income Tax Appellate Tribunal, Kolkata
