DCIT CIRCLE-4(1)(1), AHMEDABAD, VEJALPUR vs. SHREE NAKODA TEXFAB PRIVATE LIMITED, AHMEDABAD

ITA 2232/AHD/2025Status: DisposedITAT Ahmedabad09 March 2026AY 2017-18Bench: Shri T.R. Senthil Kumar (Judicial Member), Shri Narendra Prasad Sinha (Accountant Member)8 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal, relying on Supreme Court judgments in Ashish Agrawal and Rajeev Bansal, and Jurisdictional High Court judgments, found that the notice issued under Section 148 was beyond the prescribed limitation period. The original notice was issued on 29-06-2021, whereas the last date for valid issuance, considering the proviso to Section 149 and TOLA, was 21-06-2022. Consequently, the reassessment proceedings were held to be invalid and without jurisdiction, and the entire reassessment order was quashed.

What were the facts?

The assessee, a Private Limited Company, filed its Return of Income for AY 2017-18. The assessment was reopened, and the AO added Rs. 57,53,400/- under Section 68 for alleged accommodation entries. The CIT(A) deleted the addition, stating the assessee did not take accommodation entries, and any such entries might have been taken by their buyers without the assessee's knowledge. The Revenue appealed against the CIT(A)'s order, while the assessee challenged the validity of the reopening notice under Rule 27.

What were the issues?

Whether the reassessment proceedings initiated under Section 147/148 were time-barred and without jurisdiction, given the date of issuance of the notice under Section 148 relative to the limitation period defined by Supreme Court judgments and TOLA.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 147,Section 68,Section 148,Section 148A(b),Section 149

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Income Tax Appellate Tribunal, AHMEDABAD “A” BENCH

Before: Shri T.R. Senthil Kumar & Shri Narendra Prasad Sinha

PER: T.R. SENTHIL KUMAR, JUDICIAL MEMBER

This appeal is filed by the Revenue as against the appellate order dated 02-09-2025 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, (in short referred to as “CIT(A)”), arising out of the assessment order passed under section 143(3) r.w.s. 147 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) relating to the Assessment Year 2017-18. 2. Brief facts of the case is that the assessee is a Private Limited Company filed its Return of Income for the Asst. Year 2017-18 on 31-

I.T.A No. 2232/Ahd/2025 A.Y. 2017-18 2 DCIT

The order continues below.

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