Anuj Kapoor Vs DCIT (ITAT Delhi)
Missed the Clock by 28 Days: TOLA Time Over, Reassessment Game Over: ITAT Applies Rajeev Bansal-
Delhi ITAT quashed reassessment for AY 2013-14 holding notice issued u/s 148 on 21.07.2022 as barred by limitation in light of Supreme Court ruling in UOI vs. Rajeev Bansal (469 ITR 46). Assessee Anuj Kapoor challenged validity of reassessment by way of additional legal ground, which Tribunal admitted following NTPC Ltd. vs. CIT (229 ITR 383). Tribunal noted that original notice u/s 148 was issued on 07.06.2021 under old regime & pursuant to UOI vs. Ashish Agarwal, AO was required to follow new regime timelines. Applying illustration in para 112 of Rajeev Bansal, Tribunal held that after considering TOLA extension, only 23 days survived with AO post assessee’s reply dated 01.06.2022 & hence fresh notice u/s 148 ought to have been issued by 24.06.2022. Since notice was actually issued on 21.07.2022, reassessment framed u/s 147 r.w.s. 144B dated 19.05.2023 was held to be time-barred & bad in law. Tribunal also relied on Delhi HC decision in Ram Balram Buildhome (P) Ltd. vs. ITO (477 ITR 133). Consequentially, reassessment was quashed & other grounds including addition u/s 69A were left open as academic.
