Hisar Leading Bank Co-Op Non-Agri Thrift & Credit Society Vs ITO (ITAT Delhi)
Reassessment Notice Time-Barred: ITAT Delhi Quashes 148 Proceedings Post Rajeev Bansal Ruling
The Delhi Bench ‘E’ of the ITAT, in The Hisar Leading Bank Co-op Non-Agri Thrift & Credit Society v. ITO (AY 2014-15), quashed reassessment proceedings on the ground that the notice issued under section 148 on 27.07.2022 was barred by limitation.
The assessee, a co-operative credit society, had not originally filed a return for AY 2014-15. Based on alleged cash deposits of ₹7.68 crore, reassessment proceedings were initiated and culminated in an ex-parte assessment under sections 147 r.w.s. 144B, with the entire cash deposits added under section 68 and taxed under section 115BBE. The CIT(A) upheld the reassessment and additions.
Before the Tribunal, the assessee pressed the pure legal ground of limitation, relying heavily on the Supreme Court decision in Union of India v. Rajeev Bansal. The ITAT examined the detailed timeline (as tabulated in the paper book) and held that for AY 2014-15, the six-year limitation under the pre-amended law expired on 31.03.2021. Even after factoring in the extensions under TOLA, the deemed 148A(b) notice regime under Ashish Agarwal, and the exclusions permitted by section 149, the surviving time available to the AO had long lapsed.
The Tribunal followed the Supreme Court’s binding interpretation in Rajeev Bansal and coordinate bench rulings (including Shivani Tayal), holding that the notice dated 27.07.2022 was clearly beyond the permissible limitation under section 149. Once the foundational notice was time-barred, the entire reassessment proceedings were rendered void ab initio.
Accordingly, the ITAT quashed the notice under section 148 and the consequential reassessment order, without going into the merits of the additions. The assessee’s appeal was allowed in full
FULL TEXT OF THE ORDER OF ITAT DELHI
