Anita Vs ITO (ITAT Delhi)
Delhi ITAT Quashes Reassessment as Notice under Old Reassessment Regime Was Issued After New Law Came into Force
The Delhi ITAT allowed the assessee’s appeal by quashing the reassessment proceedings, holding that the notice under section 148 was issued after the new reassessment regime had come into force and, therefore, the reopening under the old provisions was invalid.
The Assessing Officer’s order stated that the section 148 notice had been issued on 31 March 2022 by email, which, according to the Department, was received by the assessee at 2:12 a.m. on 1 April 2022. However, the assessee produced documentary evidence showing that the notice itself had actually been issued only on 1 April 2022. This crucial factual assertion remained unrebutted by the Revenue before the Tribunal.
Relying on the Delhi High Court’s decision in Sumanjeet Aggarwal vs. ITO (Delhi HC), (2022) 143 taxmann.com 11 (Del), the Tribunal held that once the new reassessment provisions had become operative, proceedings could not be initiated under the erstwhile reassessment regime. Accordingly, the reassessment was quashed, rendering all other grounds on merits purely academic. The assessee’s appeal was allowed.
FULL TEXT OF THE ORDER OF ITAT DELHI
This appeal of the assessee for assessment year 2018-19, arises against the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi order dated 17.4.2026 involving proceedings 147 r.w.s. 144 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’). Heard both the parties at length. Case file perused.
