ITO Vs Perfect Wahers & Fasteners (P) Ltd. (ITAT Kolkata)
ITAT Kolkata: Reassessment for AY 2015-16 Time-Barred Post Rajeev Bansal—Revenue Appeal Dismissed
The Kolkata Bench of the ITAT dismissed the Revenue’s appeal in the case of Perfect Wahers & Fasteners (P) Ltd. for AY 2015-16, upholding the order of the CIT(A) which had quashed the reassessment proceedings as barred by limitation. The Tribunal held that the notice issued under section 148 on 29.07.2022 was beyond the permissible time limit, applying the law laid down by the Supreme Court in Union of India v. Rajeev Bansal (2024).
The original notice under section 148 had been issued on 18.06.2021 during the transitional period governed by Ashish Agarwal. In terms of Rajeev Bansal, the ITAT observed that the “surviving or balance period of limitation” available to the Assessing Officer, after excluding the deemed stay period and the reply window under section 148A, expired on 16.06.2022. Since the fresh notice under the new regime was issued on 29.07.2022, it was clearly time-barred and invalid.
Accordingly, the Tribunal affirmed that the reassessment proceedings lacked jurisdiction and upheld the CIT(A)’s order quashing the assessment, rendering all additions on merits infructuous. The Revenue’s appeal was dismissed in entirety.
FULL TEXT OF THE ORDER OF ITAT KOLKATA
