Kumar Matunga Project Vs ITO (ITAT Pune)
Reassessment for AY 2015-16 Time-Barred Post-Ashish Agarwal: ITAT Pune Quashes Section 148 Notice
The Pune Bench of the ITAT allowed the assessee-firm’s appeal for AY 2015-16 and quashed the reassessment proceedings, holding that the notice issued under section 148 dated 23.07.2022 was barred by limitation and therefore bad in law.
The Tribunal noted that the original notice under section 148 was issued on 16.04.2021 and, pursuant to Union of India v. Ashish Agarwal (SC), the AO issued a section 148A(b) notice on 24.05.2022, followed by the order under section 148A(d) and fresh section 148 notice on 23.07.2022. However, relying on the Supreme Court’s subsequent decision in Union of India v. Rajeev Bansal (2024), the ITAT held that for AY 2015-16, no reassessment notice could survive beyond 31.03.2022, as TOLA does not extend limitation for that year. The Revenue’s concession before the Supreme Court that all notices for AY 2015-16 issued on or after 01.04.2021 must be dropped was specifically noted.
The Tribunal followed its earlier decision in Motiwala Auto Pvt. Ltd., as well as Bombay High Court in Spicy Sangria Hotels Pvt. Ltd., and concluded that all reassessment notices issued after the surviving limitation period are void. Since the assessee succeeded on the jurisdictional ground, the Tribunal did not adjudicate the merits of the addition of ₹7.50 crore made under section 69.
