ITO Vs Kolahai Infotech Private Limited (ITAT Delhi)
AY 2015-16 Reassessment Time-Barred—Revenue’s Own Concession in Rajeev Bansal Binding; 148 Notice Invalid & Assessment Annulled
The Revenue appealed against the CIT(A)’s order dated 25-03-2025 annulling the reassessment for AY 2015-16. The Assessee, a private limited company, had originally been assessed u/s 143(3) in 2017. A notice u/s 148 (old regime) was issued on 22-04-2021, later treated as a 148A(b) notice pursuant to the Supreme Court’s ruling in Ashish Agarwal. The AO passed a 148A(d) order on 28-07-2022, issued a fresh 148 notice on 28-07-2022, and completed reassessment on 19-05-2023 making an addition of ₹163 crore u/s 68 r.w.s.115BBE.
CIT(A) held the reassessment time-barred, relying on the Supreme Court’s landmark judgment in Union of India v. Rajeev Bansal (2024), where the Revenue itself conceded that for AY 2015-16, all notices issued on or after 01-04-2021 must be dropped, because TOLA does not extend limitation for this year. This concession was reproduced by the CIT(A) (pages 5–10 of the order), including the tabulation where the Revenue admitted that AY 2015-16 falls outside the permissible window under the new regime.
Before ITAT, the Department argued that since the alleged escapement exceeded ₹50 lakh, the case fell under s.149(1)(b) with time limit up to 31-03-2026. The Tribunal rejected this argument, holding that Rajeev Bansal is binding and the Revenue’s own concession before the Supreme Court governs the issue. ITAT also noted that the Supreme Court had subsequently dismissed the SLP in R.K. Build Pvt Ltd (17-01-2025) on the same principle, reiterating that AY 2015-16 is outside TOLA.
The Tribunal held that the CIT(A)’s reasoning was “based on proper appreciation of law expounded by judicial dicta” and that no interference was warranted. It confirmed that the 148 notice dated 28-07-2022 was barred by limitation, rendering the entire reassessment void.
FULL TEXT OF THE ORDER OF ITAT DELHI
