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Facts
The case involves an appeal and cross-objection concerning an assessment order for AY 2015-16. The primary issue revolves around the validity and timeliness of the notice issued under Section 148 of the Income Tax Act.
Held
The Tribunal held that the notice issued under Section 148 of the Income Tax Act was barred by limitation as it was issued beyond the prescribed time limit. Consequently, the entire assessment was quashed.
Key Issues
Whether the notice issued under Section 148 of the Income Tax Act for reassessment was within the prescribed time limit, and whether the entire assessment is vitiated due to a time-barred notice.
Sections Cited
147, 144B, 148, 148A
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Income Tax Appellate Tribunal, “B” BENCH, DELHI
Before: MS. MADHUMITA ROY & SHRI NAVEEN CHANDRA
The instant appeal and Cross Objection filed by the Revenue and the assessee respectively are directed against the order passed by the Ld. National Faceless Appeal Centre (NFAC) Delhi dated 27.11.2024 arising out of the Assessment Order dated 27.05.2023 passed by the NFAC, Delhi under Section 147 r.w.s 144B of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for Assessment Year 2015-16.
Cross Objection No. 167/Del/2025
Since the assessee has raised the issue on maintainability of the proceeding we would like to proceed with the same.
In this case the notice under Section 148 of the Act should have been issued within 6 years from the end of Assessment Year 2023-24 i.e. on or before 31.03.2023. In the case in hand, the notice under Section 148 of the Act was issued on 25.07.2022 and thus, the same is barred by limitation as the case of the assessee.
In fact, on 30.06.2021 the notice under Section 148 of the Act was issued. Relevant to mention that on 01.06.2022 the notice under Section 148A(b) had been issued and on 24.06.2022 the reply to the said notice under Section 148A(b) was furnished by the assessee. On 25.07.2022 the order under Section 148A(d) was passed and notice under Section 148 of the Act was issued as per the order passed by the Hon’ble Supreme Court in the case of Union of India & Ors. Vs. Rajiv Bansal, reported in 469 ITR 46 whereas in paragraph 112, the specific guideline has been framed that the time limit for issuance of notice under Section 148 of the Act under the new regime ended on 01.07.2022 i.e. 7 days after 24.06.2022 the date when the reply to the notice under Section 148A(b) was furnished by the assessee. In that view of the matter, the notice under Section 148 of the Act issued on 25.07.2022 is barred by limitation as the case made out by the assessee. Such fact has not been able to be controverted by the Ld. DR. On the contrary, the Ld. DR has filed a short note of submission of 1 page on the merit of the matter and not been able to narrate anything on the maintainability of the proceedings as raised by the assessee.
Thus, having heard the Ld. Counsels appearing for the parties and having regard to the facts and circumstances of the matter when the impugned notice under Section 148 of the Act was issued on 25.07.2022 i.e. beyond the time limit prescribed on 30.10.2024, the same is found to be barred by limitation. Particularly taking into consideration the ratio laid down and the guidelines framed by the Hon’ble Apex Court in the case of Union of India & Ors. Vs. Rajiv Bansal (supra) the order impugned under Section 148 of the Act is found to be barred by limitation and therefore, quashed. Consequently, the entire assessment is vitiated and therefore, quashed.
The Cross Objection filed by the assessee since allowed and relates to the jurisdictional issue of the assessment which is upheld in favour of the assessee, the Revenue’s appeal has become academic and thus, dismissed as infructuous.
The appeal preferred by the Revenue is dismissed and Cross Objection filed by the assessee is allowed.
Order pronounced in the open court on 29.10.2025