Waves Tradeline Private Limited Vs ITO (ITAT Ahmedabad)
Reopening Collapses on Limitation: ITAT Ahmedabad Quashes Reassessments for AYs 2015-16 to 2017-18 as Time-Barred
ITAT Ahmedabad “D” Bench, in Waves Tradeline Pvt. Ltd. vs ITO (ITA Nos. 1228, 1229 & 1230/Ahd/2025, AYs 2015-16, 2016-17 & 2017-18; order dated 24.12.2025), has quashed reassessment proceedings in their entirety by holding that all notices issued u/s 148 were barred by limitation and hence without jurisdiction.
For AY 2015-16, Tribunal held that the original notice u/s 148 dated 07.06.2021, though issued under TOLA extension, stood invalid in light of the binding ratio of the Supreme Court in Union of India v. Rajeev Bansal and Deepak Steel & Power Ltd., wherein it was categorically held that all notices for AY 2015-16 issued on or after 01.04.2021 must be dropped. Consequently, the subsequent notices u/s 148A(b), order u/s 148A(d) and the assessment u/s 147 r/w 144B were held to be non est and quashed.
For AYs 2016-17 & 2017-18, Tribunal examined the “surviving time” doctrine laid down by the Supreme Court in Rajeev Bansal. The original notices u/s 148 dated 23.04.2021 were treated as deemed notices u/s 148A(b) pursuant to Ashish Agarwal. After excluding the period for supply of information and the statutory two-week reply window, the AO was left with only 68 days of surviving limitation. However, the AO passed the order u/s 148A(d) on 26.08.2022 and issued fresh notices u/s 148 on 27.08.2022, which were beyond the permissible surviving period (ending on 22.08.2022 / 24.08.2022).
Rejecting Revenue’s plea that limitation should run from the actual date of reply, Tribunal held that the two-week statutory period alone is excludable, not any extended time taken by the assessee. Relying on Rajeev Bansal and the Gujarat High Court decision in Dhanraj Govindram Kella, Tribunal concluded that section 148A(d) cannot override the Supreme Court-mandated surviving limitation, even by invoking Article 142.
Accordingly, all reassessment notices and consequent assessment orders for AYs 2015-16, 2016-17 & 2017-18 were quashed as time-barred, and additions running into hundreds of crores u/s 68 were rendered infructuous.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
