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Facts
The assessee's return for AY 2015-16 was subjected to reassessment after a survey, with additions made under Section 68. The assessee's appeal before the FAA was successful. The department appealed to the Tribunal, while the assessee filed an application raising grounds of limitation.
Held
The Tribunal held that the reassessment proceedings for AY 2015-16 were barred by limitation, as the notice issued was beyond the prescribed period. This was supported by decisions of the Supreme Court and Delhi High Court.
Key Issues
Whether reassessment proceedings initiated by issuing notice under Section 148 are barred by limitation for AY 2015-16, considering the applicability of the TOLA Act.
Sections Cited
147, 144B, 68, 149(1), 148
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Income Tax Appellate Tribunal, “C” BENCH, DELHI
Before: SHRI ANUBHAV SHARMA&
This appeal is preferred by the assessee against the order dated 24.06.2024 of the Ld. National Faceless Appeal Centre (NFAC) Delhi Savita Aggarwal (AY: 2015-16) (hereinafter referred as Ld. First Appellate Authority or in short Ld. ‘FAA’) in DIN & Order No: ITBA/NFAC/S/250/2024-25/1065967388(1) arising out of the assessment order dated 17.05.2023 u/s 147 r.w.s 144B of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) passed by the Assessment Unit, Income Tax Department, for AY: 2015-16.
Heard and perused the records and what comes up on hearing is that assessee’s returned was subjected to reassessment after a survey proceeding and AO made an addition u/s 68 of the Act on account of alleged bogus entries and the income of the assessee was recomputed. Assessee preferred an appeal where succeeded for which department is in appeal before this Tribunal, however, assessee filed an application under Rule 27 of the ITAT Rules raising grounds alleging that assessment proceedings are barred by limitation and are without compliance of provision of Section 149(1) r.w.s TOLA Act, 2022.
The ld. DR has opposed the grounds, however, what comes up from the fact is that the assessment therein involves in AY: 2015-16 and in regard to this assessment year as for the purpose of Section 148 the notice issued on Savita Aggarwal (AY: 2015-16) 24.05.2021 is beyond the period of limitation and Hon’ble Supreme Court in the case of Union of India Vs. Rajeev Bansal (2024) 167 taxman.com 70 (SC) has taken note of the departments admission that in regard to the AY:
2015-16 the period of limitation extended by TOLA does not apply and similar has been fate of various similar reassessments for AY: 2015-16.
Recently, the Hon’ble jurisdictional Delhi High Court in the case of IBIBO Group Private Limited Vs. Asst. CIT WP(C) 17639/2022 dated 13.12.2024 (Del) has quashed the reassessment proceedings for AY: 2015-16 on identical facts relying on the decision of UOI Vs. Rajeev Bansal (supra).
In the light of the aforesaid we are inclined to sustain the additional ground as raised and the appeal of the revenue dismissed.
Order pronounced in the open court on 17.12.2025