Sanjeev Kumar Aggarwal Vs DCIT (ITAT Delhi)
Reassessment for AY 2015-16 Barred by Limitation – ITAT Delhi Applies Rajeev Bansal and Quashes Assessment
The Delhi Bench of the ITAT allowed the assessee’s appeal for AY 2015-16 and quashed the reassessment proceedings on the ground that the notice issued under section 148 dated 26.07.2022 was time-barred. The Tribunal examined the entire chronology of events post Ashish Agarwal and applied the binding ratio of the Supreme Court in Union of India v. Rajeev Bansal.
The ITAT noted that for AY 2015-16, the normal six-year limitation expired on 31.03.2022, and TOLA was not applicable to this assessment year—a position expressly conceded by the Revenue before the Supreme Court in Rajeev Bansal. Consequently, all notices issued on or after 01.04.2021 for AY 2015-16 were liable to be dropped. Despite this, the AO issued a second notice under section 148 on 26.07.2022 and completed reassessment on 25.05.2023.
Relying on Rajeev Bansal and consistent Delhi High Court rulings (Sarthak Gupta and IBIBO Group Pvt. Ltd.), the Tribunal held that the impugned notice was clearly beyond limitation, rendering the entire reassessment void ab initio. Accordingly, the assessment framed pursuant to the invalid notice was set aside and the assessee’s appeal was
FULL TEXT OF THE ORDER OF ITAT DELHI
