ITO Vs Pushpak Realities Pvt. Ltd. (ITAT Mumbai)
ITAT Mumbai held that reassessment notice issued under section 148 of the Income Tax Act being barred by limitation under the new provisions of section 149(1) of the Income Tax Act is liable to be quashed and set aside.
Facts- The present appeal is preferred by the revenue challenging quashing of the notice u/s. 148 of the Income Tax Act. Revenue has mainly contested that CIT (A) has quashed the notices on the ground that it is barred by limitation. The main contention of the revenue is that the notices issued u/s.148 have been deemed to be extended by Section 3 of TOLA, therefore, all the notices sent are within time limit and same is in consonance of the judgment of the Hon’ble Supreme Court in the case of Union of India vs. Ashish Agarwal reported in (2023) 1 SCC 617.
Conclusion- Held that here notice u/s. 148 for the A.Y. 2015-16 has been issued on 28/07/2022 which is admittedly barred by limitation under the new provision of Section 149(1) and it is not covered under TOLA. Accordingly, all the notices are quashed being barred by limitation on the reasons given above and we are not going on the reasons given by the ld. CIT (A) for quashing the notice. Since the issue involved was squarely covered by the judgment of the Hon’ble Supreme Court in the case of Shri Rajeev Bansal therefore, the same has been decided on the principle laid down by the Hon’ble Supreme Court.
