RAJANI SAHU,GWALIOR vs. INCOME-TAX OFFICER, ASHOK NAGAR, GWALIOR

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ITA 420/AGR/2024Status: DisposedITAT Agra22 April 2025AY 2015-2016Bench: HON’BLE SHRI SATBEER SINGH GODARA, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL (Accountant Member)3 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal quashed the assessment order, holding that the reassessment proceedings were barred by limitation. The notice under section 148 was issued after the prescribed limitation period for AY 2015-16.

What were the facts?

The Assessing Officer made an addition of deemed income under section 56(2)(vii)(b) for Rs. 48.90 Lacs for AY 2015-16. The CIT(A) confirmed this addition, leading to the assessee's appeal.

What were the issues?

The primary issue was the legality of reassessment proceedings, specifically whether the notice for reassessment was issued within the period of limitation as extended by the Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020.

Which sections of the Income-tax Act were involved?

Section 56(2)(vii)(b),Section 147,Section 144,Section 148,Section 148A,Section 149

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Income Tax Appellate Tribunal, “DB” BENCH, AGRA

Before: HON’BLE SHRI SATBEER SINGH GODARA, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM

Pronounced: 22.04.2025

O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2015-16 arises out of an order passed by learned Commissioner of Income Tax (Appeals), NFAC, Delhi [CIT(A)] on 21-05-2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 147 r.w.s. 144 of the Act on 27-04-2023. In the assessment order, Ld. AO made addition of deemed income u/s 56(2)(vii)(b) for Rs.48.90 Lacs. The Ld. CIT(A) confirmed the same against which the assessee is in further appeal before us.

2.

The Ld. AR, at the outset, raised a pertinent legal issue assailing legality of reassessment proceedings. It has been stated that this year is covered by the decision of Hon’ble Delhi High Court in the case of IBIBO Group Private Ltd. (WP(C) No.17639/2022 dated 13-12-2024) which has been rendered by considering the decision of Hon’ble Supreme Court in the case of UOI vs. Rajeev Bansal (167 Taxmann.com 70). In this decision it was held by Hon’ble Apex Court as under: - "(e) The Finance Act, 2021 (2021) ((2021) 432 ITR (Stat) 52) substituted the fold regime for reassessment with a new regime. The first proviso to section 149 does not expressly bar the application of Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020, Section 3 of the Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 applies to the entire Income-tax Act, including sections 149 and 151 of the new regime. Once the first proviso to section 149(1)(b) is read with Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020, then all the notices issued between April 1, 2021 and June 30, 2021 pertaining to the assessment years 2013-2014, 2014-2015, 2015-2016, 2016-2017, and 2017-2018 will be within the period of limitation as explained in the tabulation below: Assessment Within 3 Expiry of limitation read Within Six Expiry of limitation read Year Years with TOLA for (2) Years with TOLA for (4) (1) (2) (3) (4) (5) 2013-14 31.03.2017 TOLA not applicable 31.03.2020 30.06.2021 2014-15 31.03.2018 TOLA not applicable 31.03.2021 30.06.2021 2015-16 31.03.2019 TOLA not applicable 31.03.2022 TOLA not applicable 2016-17 31.03.2020 TOLA not applicable 31.03.2023 TOLA not applicable 2017-18 31.03.2021 TOLA not applicable 31.03.2024 TOLA not applicable (f) The Revenue concedes that for the assessment year 2015-2016, all notices issued on or after April 1, 2021 will have to be dropped as they will not fall for completion during the period prescribed under the Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020." Considering the same, Hon’ble Court has allowed the writ petition. This position could not be controverted by revenue. We find that in the present case pertaining to AY 2015-16, an order u/s 148A(d) was passed on 18-07-2022. Finally, notice u/s 148 has been issued on 23-07-2022 which culminated into assessment order on 27-04-2023. As tabulated above, the period of expiry of limitation for AY 2015-16 would be 31-03- 2022. Clearly, the notice u/s 148 is barred by limitation. Respectfully following the above decision, we quash the assessment order and allow the appeal on this legal ground only. Delving into other grounds has been rendered merely academic in nature.

3.

The appeal stand allowed in terms of our above order. Order pronounced u/r 34(4) of Income Tax (Appellate Tribunal) Rules, 1963.

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