Aditya Birla Sun Life Insurance Co. Limited Vs DCIT (ITAT Mumbai)
These cross appeals by the assessee and the Revenue arose from a consolidated order of the Commissioner of Income Tax (Appeals) for Assessment Years (AYs) 2015–16 and 2016–17. For both years, the central issue before the Tribunal was the validity of reassessment proceedings initiated under Section 148 of the Income Tax Act, 1961, following the amended reassessment regime introduced by the Finance Act, 2021 and interpreted by subsequent Supreme Court and High Court rulings.
For AY 2015–16, the assessee had filed its return declaring nil income. The Assessing Officer initiated reassessment proceedings by issuing a notice under Section 148 on 30 June 2021, which, pursuant to the Supreme Court’s directions in Union of India v. Ashish Agarwal, was treated as a notice under Section 148A(b). An order under Section 148A(d) and a fresh notice under Section 148 were issued on 28 July 2022, followed by completion of reassessment with additions and disallowances. Before the appellate authority, the assessee raised both legal and merits-based challenges, contending inter alia that the reassessment notice dated 28 July 2022 was barred by limitation. The appellate authority accepted the legal plea, holding the notice to be time-barred, but nevertheless proceeded to decide the merits against the assessee.
