AKC Retailers Private Limited Vs ITO (Delhi High Court)
Beyond the Deadline? Delhi HC asks AO to re-compute surviving limitation in reassessment cases
Limitation Reloaded: Delhi HC sends AY 2013-14 reassessment back to AO under Rajeev Bansal test
Limitation is not Assumed, It is Computed: Delhi HC on reassessment validity
Assessee filed writ petition before Delhi High Court challenging notice issued u/s 148A(b) dated 27-05-2022, order passed u/s 148A(d) dated 22-07-2022 & consequential reassessment proceedings u/s 148 for AY 2013-14.
Core grievance of Assessee was that the reassessment notice dated 22-07-2022 was barred by limitation, as the maximum six-year period prescribed u/s 149 had expired on 17-06-2022 after considering extensions & exclusions under TOLA and the Supreme Court judgment in Ashish Agarwal.
Assessee relied heavily on Delhi HC judgment in Kanwaljeet Kaur v. CIT (2025 SCC OnLine Del 605), contending that once the surviving period of limitation is computed as per Rajeev Bansal, the notice issued after 17-06-2022 is clearly time-barred.
A detailed computation chart was placed before the Court showing:
- Original notice u/s 148 (old regime) issued on 24-06-2021, deemed to be SCN u/s 148A(b).
- Extended limitation under TOLA up to 30-06-2021.
- Only 6 days of limitation remained as on 24-06-2021, extended to 7 days as per proviso to s.149.
- Period from 24-06-2021 till 10-06-2022 (date allowed for filing reply) to be excluded as “deemed stay”.
- Consequently, last permissible date for issuing notice u/s 148 was 17-06-2022.
- Actual notice u/s 148 issued on 22-07-2022.
Revenue contended that the issue requires examination by the AO in light of the latest Supreme Court ruling in UOI v. Rajeev Bansal (2024 SCC OnLine SC 2693).
High Court observed that the controversy regarding limitation, surviving period, & applicability of exclusions has now been authoritatively dealt with by the Supreme Court in Rajeev Bansal and by Delhi HC in Ram Balram Buildhome Pvt. Ltd. v. ITO (2025 SCC OnLine Del 481).
Court reproduced paras 27–29 of Kanwaljeet Kaur, which mandate that:
