Roy Banerjee Development Private Limited Vs ITO (ITAT Kolkata)
Rajeev Bansal (SC) Strikes Again-Ashish Agarwal Doesn’t Save Time-Barred Cases- Kolkata ITAT Quashes Time-Barred Reopening for AY 2015-16
Kolkata ITAT ‘D’ Bench in Roy Banerjee Development Pvt Ltd vs ITO (ITA No.1584/Kol/2025, AY 2015-16, order dated 23-12-2025) allowed the assessee’s appeal and quashed the reassessment proceedings as barred by limitation, squarely applying the Supreme Court judgment in Union of India vs Rajeev Bansal (469 ITR 46).
The assessee had filed its return on 08-01-2016 declaring a loss. Reopening was initiated on the allegation of accommodation entries of ₹52.50 lakh. After the Ashish Agarwal judgment, the Jurisdictional AO issued a fresh notice u/s 148 on 26-07-2022 under the new regime, followed by completion of reassessment, which was also affirmed by CIT(A), NFAC.
Before ITAT, the assessee raised a pure legal ground that the reopening was hopelessly time-barred, as AY 2015-16 had crossed the permissible limitation period even after considering TOLA relaxations. The Tribunal accepted this contention and held that the issue is squarely covered by the Supreme Court decision in Rajeev Bansal, which clarified that TOLA does not extend the outer limitation prescribed under section 149, and that time-barred cases cannot be revived merely by issuing notices under the post-2021 regime.
ITAT also relied on its own coordinate-bench ruling in M/s Kothari Metals Ltd vs DCIT (ITA No.2138/Kol/2024, order dated 19-03-2025), where identical reassessment proceedings were quashed on limitation.
Accordingly, the Tribunal quashed the notice u/s 148 dated 26-07-2022 and the consequential assessment, holding the entire proceedings to be void ab initio.
Key takeaway:
For AY 2015-16, reassessment notices issued in July 2022 are dead on arrival. Ashish Agarwal cannot resurrect time-barred cases, and Rajeev Bansal (SC) is now the decisive authority—limitation is absolute and unforgiving.
FULL TEXT OF THE ORDER OF ITAT KOLKATA
The present appeal filed by the revenue arises from order dated 31.07.2024passed u/s 250 of the Income Tax Act, 1961 (hereafter “the Act”) by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereafter “the Ld. CIT(A)].
