Mohd. Ayyub Vs ITO (ITAT Delhi)
Time-barred notice kills reassessment: ITAT quashes 147 proceedings for AY 2015-16 relying on Rajeev Bansal- For AY 2015-16, notice could have been issued only up to 31-03-2022, subject to ₹50 lakh escapement condition
Delhi ITAT allowed Assessee’s appeal & quashed reassessment proceedings as being barred by limitation. Tribunal admitted additional legal ground under Rule 11, holding that validity of notice u/s 148 can be examined on admitted facts, relying on NTPC Ltd vs CIT. ITAT noted that notice u/s 148 was issued on 22-07-2022 for AY 2015-16, which was beyond the permissible time limit in light of Supreme Court decision in Union of India vs Rajeev Bansal. Tribunal observed that for AY 2015-16, notice could have been issued only up to 31-03-2022 (subject to ₹50 lakh escapement condition) & that extended limitation under TOLA 2020, as read with Ashish Agarwal, was not available for this year, as conceded by Revenue before the Supreme Court. Consequently, reassessment order u/s 147 r.w.s. 144B & consequential additions of ₹3.34 crore relating to compulsory acquisition compensation/interest were held void ab initio & quashed in entirety. Appeal was allowed
FULL TEXT OF THE ORDER OF ITAT DELHI
This appeal is preferred by the Assessee against the order dated 16.07.2025 of the Ld. National Faceless Appeal Centre (NFAC) (hereinafter referred as Ld. First Appellate Authority or in short Ld. ‘FAA’) in DIN & Order No : ITBA/NFAC/S/250/2025-26/1078543311(1) arising out of the order dated 30.05.2023 passed u/s 147 r.w.s 144B of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) by the Assessment Unit, Income Tax Department for AY: 2015-16.
