A. B. MOTORS PVT. LTD. ,PATIALA vs. DY. COMMISSIONER OF INCOME TAX , CIRCLE, PATIALA , PATIALA

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ITA 989/CHANDI/2024Status: DisposedITAT Chandigarh12 January 2026AY 2015-16Bench: SHRI RAJPAL YADAV (Vice President), SHRI KRINWANT SAHAY (Accountant Member)6 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal, relying on a Supreme Court decision, held that reassessment notices issued on or after 01.04.2021 for AY 2015-16 are invalid and quashed the reopening of assessment u/s 148. Consequently, the related order passed u/s 263 was also quashed as its very foundation, an erroneous and prejudicial assessment, ceased to exist once the reassessment was quashed.

What were the facts?

The assessee's assessment for AY 2015-16 was reopened u/s 148 on 12.04.2021, after information was received about undeclared discount/incentive of Rs. 2.64 Cr on which Service Tax was not paid. The assessee challenged this reopening as time-barred under TOLA. The appeal also covered an order passed u/s 263 related to the same assessment year.

What were the issues?

1. Whether a reassessment notice issued u/s 148 on 12.04.2021 for AY 2015-16 is valid given the limitations under TOLA. 2. Whether an order passed u/s 263 can be sustained when the underlying assessment on which it is based is quashed.

Which sections of the Income-tax Act were involved?

Section 250,Section 263,Section 147,Section 148,Section 143(1)

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

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Income Tax Appellate Tribunal, DIVISION BENCH, ‘A’ CHANDIGARH

Before: SHRI RAJPAL YADAV & SHRI KRINWANT SAHAY

For Appellant: Shri Tej Mohan Singh, Advocate
For Respondent: Shri Manav Bansal, CIT DR &, Shri Vivek Vardhan, Addl. CIT, Sr.DR
Hearing: 15.10.2025Pronounced: 12.01.2026

Heard together (2 matters)

ITA No. 989/CHD/2024
ITA No. 175/CHD/2024

Read from the judgment's own cause title. This page is filed under one of them.

आदेश की �ितिलिप अ�ेिषत/ Copy of the order forwarded to :

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