DCIT, CIRCLE- 19(1), DELHI vs. RCC DEVELOPERS PVT. LTD., DELHI

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ITA 4695/DEL/2024Status: DisposedITAT Delhi28 November 2025AY 2014-15Bench: SHRI C.N. PRASAD (Judicial Member), SHRI M. BALANGANESH (Accountant Member)5 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that both the initial notice dated 24.05.2021 and the subsequent notice dated 22.07.2022 were barred by limitation. Consequently, the reassessment proceedings were quashed.

What were the facts?

The Revenue appealed an order deleting additions related to alleged bogus sales. The assessee, in a cross-objection, challenged the reassessment notice under Section 148 as time-barred, both under the old regime and the new regime following Supreme Court decisions.

What were the issues?

Whether the reassessment notices issued under Section 148 were time-barred?

Which sections of the Income-tax Act were involved?

Section 148,Section 143(3),Section 148A(b),Section 148A(d)

AI-generated summary — verify with the full judgment below

Before: SHRI C.N. PRASAD & SHRI M. BALANGANESH

Hearing: 24.09.2025Pronounced: 28.11.2025

Heard together (2 matters)

C.O. No.84/Del/2025
ITA No.4695/Del/2024

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

1.

This appeal is filed by the Revenue and cross objection by the assessee against the order of learned Commissioner of Income Tax (Appeals)/NFAC, Delhi dated 08.08.2024 for the A.Y. 2014-15.

2.

Revenue in its appeal challenge the order of the learned CIT(A) and deleting the addition made in respect of alleged bogus sales of Rs.4,80,25,220/- to Rishab Trading Company. In the cross objection the assessee has challenged the order of the CIT(A) that the notice issued u/s. 148 was time barred both the initial notice dated 24.05.2021 under old regime on the ground that it was issued the expiry of 6 years as well as the new notice u/s. 148 dated 22.04.2022 pursuant to the Hon’ble Supreme Court decision the case of Ashish Agarwal and Rajiv Bansal is time barred.

3.

The learned Counsel for the assessee at the outset submitted brief synopsis as under :-

4.

Referring to the decision of the Hon’ble Suprme Court in the case of Ashish Agarwal and also the decision of Hon’ble Supreme Court in the case of Rajiv Bansal, the learned Counsel for the assessee stated that both the notices were barred by limitation.

5.

Heard rival contentions, perused the orders of the authorities below and the material placed before us.

6.

As we could be seen from the above table the initial notice u/s. 148 under old regime was issued on 24.05.2021 beyond the due date i.e. 31.03.2021. Even the notice dated 22.07.2022 pursuant to the decision of Ashish Agarwal and Rajiv Bansal is barred by limitation for the reason that the due date as per the formula set by Hon’ble Supreme Court in the case of Rajiv Bansal case, expired on 18.07.2022. Thus, we observed that the initial notice dated 24.05.2021 as well as the notice dated 22.07.2022 pursuant to the decisions of Ashish Agarwal and Rajiv Bansal case all barred by limitation and consequently the assessment framed based on such notices is bad in law the same is hereby quashed Ground No.1 of cross objection filed by the assessee is allowed. Since we have allowed cross objection on legal ground the other ground raised

in the cross objection are not gone into at this stage. Since we have quashed the reassessment on legal issue the appeal of the revenue became infructuous.

7. In the result, cross objection of the assessee is partly allowed as indicated above and appeal of the revenue is dismissed as infructuous.

Order pronounced in the open court on 28.11.2025

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