Inckah Infrastructure Technologies Pvt. Ltd. Vs DCIT (ITAT Delhi)
Reassessment Invalid as TOLA Benefit Not Available for AY 2015-16 Notices Issued After April 1, 2021; ITAT Cancels Reopening Because Section 148 Notice Fell Beyond Limitation Period; ITAT Holds Section 148 Notices Issued After April 1, 2021 for AY 2015-16 Are Barred by Limitation
The assessee filed an appeal for Assessment Year 2015-16 against the order of the CIT(A)/NFAC, Delhi dated 29 July 2025 arising from reassessment proceedings under Sections 147 and 148 of the Income Tax Act, 1961.
During the hearing, the Tribunal first examined the validity of the reassessment proceedings initiated through a notice issued under Section 148 on 31 March 2022. The Tribunal noted that the Department had already conceded before higher judicial forums that the provisions of the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (TOLA) would not apply to Assessment Year 2015-16 for notices issued on or after 1 April 2021.
The Tribunal referred to its earlier decision in Deepak Agarwal vs. DCIT dated 23 July 2025, where a similar reassessment for AY 2015-16 was quashed. In that case, reliance had been placed on the Delhi High Court’s decision in Make My Trip (India) Pvt. Ltd. v. DCIT, which held that reassessment notices issued on or after 1 April 2021 for AY 2015-16 were beyond the period of limitation. The Tribunal also noted the Supreme Court’s observations in Deepak Steel & Power Ltd. v. CBDT and ACIT v. Nehal Rashid Shah, where the Revenue’s concession recorded in Union of India v. Rajiv Bansal was taken into account. The concession stated that for AY 2015-16, all notices issued on or after 1 April 2021 would have to be dropped because they would not fall within the period prescribed under TOLA.
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