Harish Kumar Vs NFAC (ITAT Delhi)
Brief facts: The Assessee filed the return of income for AY 2015–16 on 17.09.2015, declaring a total income of ₹11,86,80,770/-. Based on information flagged under the Risk Management Strategy (RMS) as formulated by the Central Board of Direct Taxes (CBDT), the case was reopened, and notice under section 148 of the Income-tax Act, 1961 (hereinafter referred to as “the Act”) was issued on 23.06.2021 after obtaining prior approval from the Principal Commissioner of Income Tax, Delhi-4. The assessment was completed under section 147 read with section 144B of the Act on 29.05.2023, determining the assessed income at ₹36,24,74,243/- by disallowing short-term capital loss under section 94(7) of the Act.
Upon appeal, the CIT(A)/NFAC partly allowed the appeal of the assessee. Aggrieved by the partial relief granted, both the assessee and the Revenue filed cross appeals before the Hon’ble Tribunal.
The primary legal ground urged by the assessee, being Ground No. 4, pertained to the bar of limitation for issuance of notice under section 148 of the Act. The assessee contended that the reassessment notice issued on 29.07.2022 was barred by limitation as prescribed under the first proviso to section 149(1) of the Act, rendering the notice and consequent proceedings void ab initio and liable to be quashed.
