KLM Steel Pipe Pvt. Ltd. Vs ITO (ITAT Delhi)
In this case before the Income Tax Appellate Tribunal, the assessee challenged reassessment proceedings initiated for Assessment Years 2013-14 and 2014-15. The appeals arose from orders passed by the National Faceless Appeal Centre (NFAC) and reassessment orders framed under Sections 147 read with 144B of the Income-tax Act, 1961.
The Tribunal first considered the preliminary issue regarding the validity of assumption of jurisdiction under Section 147, observing that the issue went to the root of the matter. For AY 2013-14, the original notice under Section 148 was issued on 28.06.2021 under the old reassessment regime that existed prior to the amendments introduced by the Finance Act, 2021. The assessee argued that after 01.04.2021, notices under the old provisions could not validly be issued. The issue had earlier been considered by the Supreme Court in Union of India v. Ashish Agarwal.
Subsequently, the Assessing Officer issued notice under Section 148A(b) on 21.05.2022. The assessee filed objections on 27.06.2022. Thereafter, an order under Section 148A(d) and a fresh notice under Section 148 were issued on 27.07.2022. The Tribunal examined whether this notice was barred by limitation in light of the Supreme Court judgment in Union of India v. Rajeev Bansal.
