Solar Packaging Private Limited Vs ITO (ITAT Mumbai)
The appeals before the Income Tax Appellate Tribunal (ITAT), Mumbai, comprised cross appeals filed by both the assessee and the Revenue against the orders of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC) dated 18.06.2025 for Assessment Years (AYs) 2016-17 and 2017-18. The appeals arose from reassessment orders passed under Section 147 of the Income Tax Act, 1961, dated 18.05.2023 and 15.05.2023. Since both appeals involved the same assessee and identical facts and issues, they were heard and decided through a common order.
The assessee contended that the reassessment notices issued under Section 148 were barred by limitation in light of the principles laid down by the Supreme Court in Union of India v. Rajeev Bansal. The assessee presented the chronology of events for both assessment years, highlighting that the original notices under the old regime were issued in June 2021, followed by fresh proceedings under Section 148A pursuant to the Supreme Court’s decision in Union of India v. Ashish Agarwal. According to the assessee, after considering the surviving limitation period recognized in Rajeev Bansal, the Assessing Officer was required to issue the orders under Section 148A(d) and the fresh notices under Section 148 by 26.06.2022 for AY 2016-17 and 15.06.2022 for AY 2017-18. However, both the orders under Section 148A(d) and notices under Section 148 were issued only on 29.07.2022, rendering them time-barred and invalid.
