Loading judgment…
Facts
The assessee, a charitable trust, purchased land, leading the Assessing Officer to make an addition of Rs. 79,60,000 under Section 69 as unexplained investment, representing the difference between jantry value and agreement value. The CIT(A) subsequently allowed the assessee's appeal, quashing the assessment order based on Supreme Court guidelines regarding the validity of reassessment notices. The revenue filed an appeal challenging the CIT(A)'s decision.
Held
The Tribunal held that the notice issued under Section 148 on 28-07-2022 for Assessment Year 2016-17 was invalid because it was issued beyond the last permissible date of 14-06-2022. This determination was based on the Supreme Court's Rajeev Bansal decision and the Gujarat High Court's ruling in Dhanraj Govindram Kella. Consequently, the CIT(A) was justified in quashing the assessment order, and the Revenue's appeal was dismissed.
Key Issues
Whether the CIT(A) was justified in quashing the assessment order due to an invalid Section 148 notice issued beyond the extended time limit, and consequently deleting the addition made under Section 69 for unexplained investment.
Sections Cited
Section 151(1), Section 148, Section 69
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AHMEDABAD “D” BENCH
Before: Dr. BRR Kumar & Ms. Suchitra Kamble
आदेश/ORDER
Per Suchitra Kamble, Judicial Member:
This is an appeal filed against the order dated 29-07- 2025 passed by National Faceless Appeal Centre (NFAC), Delhi for assessment year 2016-17.
The grounds of appeal
are as under:- “1. Whether on the facts and circumstances of the case in law, the Ld.CIT(A), NFAC is justified in quashing the assessment order when the specified authority under Section 151(1) has an extended time till
30. June 2021 to grant approval where the instant case pertains to A.Y. 2016-17, the initial notice u/s 148 of the Act was issued on 30.06.2021 which was within extended period of 03 years from the A.Y. 2016-17.
Muslim Islahi Jamat, A.Y. 2016-17 2. Whether on the facts and circumstances of the case and in law, Ld.CIT(A) is justified in deleting addition of Rs.79,60,000/- made on account of unexplained investment u/s 69 of I.T. Act, 1961.”
The assessee is a charitable trust and has not filed return of income. The assessee trust purchased land during the year under consideration at the market value. The Assessing Officer made addition of difference between jantry value and agreement value amounting to Rs. 79,60,000/- and treated the same as unexplained investment u/s. 69 of the Act. The assessee filed appeal before the CIT(A). The CIT(A) allowed the appeal of the assessee as per the guideline of the Hon’ble Supreme Court in case of Union of India vs. Ashish Agarwal 444 ITR 1 and Union of India vs. Rajeev Bansal 469 ITR 46.
At the time of hearing, none appeared on behalf of the assessee, therefore, we are proceeding on the basis of the submissions made by the assessee before the CIT(A). The notice u/s. 148 under new regime was issued on 28-07-2022 in the present assessee’s case for assessment year 2016-17 and the earlier notice u/s. 148 was issued on 30-06-2021. The assessment was passed on 08-05-2023. From the perusal of the decision of Hon’ble Supreme Court in case of Rajeev Bansal (supra), the notices issued u/s. 148 of the Act under old regime between 01-04-2021 and 30-06-2021 as per TOLA will be a valid notice if the notice u/s. 148 of the Act under the new regime is issued within three years from the end of the relevant assessment year as three years would complete within the period of 20-03-2020 and 30-06-2021. The decision of Hon’ble Gujarat High Court in case of Dhanraj Govindram Kella vs. ITO (R/Special Civil Application No. 6387 of 2023, 5688 of 2023, Muslim Islahi Jamat, A.Y. 2016-17 22260 of 2022 & 996 of 2023 order dated 8.7.2025) has categorically mentioned that the last date for issuance of notice u/s. 148 as per surviving time for assessment year 2016-17 will be that of 14-06-2022 and in the present assessee’s case it was issued thereafter i.e. 28-07-2022. Thus, the notice itself becomes invalid and hence the CIT(A) has rightly given the finding in favour of the assessee thereby quashing the assessment order. The appeal preferred by the Revenue does not survive.
In the result, the appeal of the Revenue is dismissed.
Order pronounced in the open court on 19-02-2026 Sd/- Sd/- (Dr. BRR Kumar) (Suchitra Kamble) Vice President Judicial Member Ahmedabad : Dated 19/02/2026 a.k. आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से,
उप/सहायक पंजीकार आयकर अपील�य अ�धकरण, अहमदाबाद