Beyond the Deadline: Reassessment Quashed Following SC’s Rajeev Bansal Ruling

By CA Vijayakumar Shetty Income Tax Judiciary November 18, 2025

TaxGuru Citation: 2025 taxguru.in 11139
Case Name: Hareshbhai Parshottambhai Vekariya Vs National Faceless Appeal Centre (ITAT Ahmedabad)
Appeal Number: Only available for paid members
Date of Judgement/Order: Only available for paid members
Related Assessment Year: 2017-18
Courts: All ITAT, ITAT Ahmedabad

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Hareshbhai Parshottambhai Vekariya Vs National Faceless Appeal Centre (ITAT Ahmedabad)

Notice u/s 148 Issued Beyond Limitation – Reassessment Declared Void Ab Initio Following Supreme Court’s Rajeev Bansal Ruling

Assessee challenged the validity of reassessment initiated through notice u/s 148 issued on 31.08.2022. Tribunal examined the statutory timeline & found that, after applying the limitation-extension logic per section 148A(b) & computing the permissible period, the last date for a valid notice was 03.08.2022. The Department issued the notice 28 days late.

Relying squarely on the Supreme Court’s landmark decision in Union of India v. Rajeev Bansal (2024) 167 taxmann.com 70, Tribunal held that any notice issued beyond the extended outer limitation is time-barred & illegal, & the entire reassessment proceedings must collapse.

Since the reassessment itself was void, all other grounds-including challenge to DIN validity, s.151A approval, & addition of ₹9,00,000/- u/s 68-became academic.

Accordingly, Tribunal quashed the notice u/s 148 & declared the entire reassessment void ab initio.

FULL TEXT OF THE ORDER OF ITAT AHMEDABAD

This appeal is filed by the Assessee against the appellate order dated 18.06.2025 passed by the Commissioner of Income Tax (Appeals)National Faceless Appeal Centre, Delhi, relating to the Assessment Year 2017-18.

2. The assessee has raised the following grounds of appeal:

1. In law and on the facts and in the circumstances of the case of appellant, order passed by Ld. CIT(A) dated 18.06.2025 is bad in law and deserves to be quashed.

2. In law and on the facts and in the circumstances of the case of appellant, Ld. CIT(A) has grossly erred in not adjudicating ground relating to the validity of reassessment proceeding despite the fact that notice issued u/s 148 of the Act by AO on 31.08.2022 is time barred as per decision of Hon’ble Supreme in the case of Union of India v/s. Rajeev Bansal [2024] 167 com70 (SC) Judgement dated 3rd October, 2024 and thus deserves to be quashed.

3. In law and in the facts and circumstances of the case, Ld. CIT(A) has grossly erred in not adjudicating ground relating to the validity of reassessment proceeding despite the fact that Notice issued u/s 148 by Jurisdictional Assessing officer is in violation of Section 151A of the Act and CBCT Notification No. 18/2022 dated 29.03.2022.

4. In law and in the facts and circumstances of the case, Ld. CIT(A) has grossly erred in not adjudicating ground relating to the validity of reassessment proceeding despite the fact that Notice under section 148 of the Act dated 31.08.2022 is void and bad in law as it was issued without DIN.

5. In law and in the facts and circumstances of the case, Ld. CIT(A) has grossly erred in upholding addition on account of alleged unexplained money amounting to Rs. 9,00,000/- u/s 68 of the Act, when no such addition is called for.

6. The appellant craves leave to add to alter, amend and/or withdraw any ground or grounds of appeal either before or during the course of hearing of the appeal.

3. The details relating to the issuance of notice under section 148 of the Income Tax Act are summarized as under:

Sr.

Particulars

Date

Deemed date of show cause notice u/s. 148A9b) (date of issuance of original
notice u/s. 148)

30.06.2021

Due date of issuance of notice

30.06.2021

No. of days between date of original 148 and due date of issuance of noice u/s.148 (deemed to be stayed, thus added in the total limitation)

1 Day

Date of filing of response to notice u/s.148A(b)

27.07.2022