Parmod Kumar Vs Central Circle 18 (ITAT Delhi)
Reassessment Notice for AY 2015-16 Issued After 01.04.2021 Held Time-Barred: ITAT Delhi Quashes Proceedings
The Delhi Bench of the ITAT allowed the assessee’s appeal and quashed the reassessment proceedings initiated under section 148 for AY 2015-16, holding the notice dated 27.04.2022 to be barred by limitation.
The Tribunal accepted the assessee’s contention that, in light of the Supreme Court judgment in Union of India v. Rajeev Bansal, all reassessment notices for AY 2015-16 issued on or after 01.04.2021 are liable to be dropped, as they do not fall within the extended timelines contemplated under the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (TOLA).
It was held that although such notices were initially treated as valid under the Supreme Court decision in Union of India v. Ashish Agarwal, the benefit of TOLA did not extend to AY 2015-16. Since the Revenue itself had conceded this legal position before the Supreme Court, the notice dated 27.04.2022 could not survive. Consequently, the assessment framed pursuant to the invalid notice was held to be void ab initio and was quashed. The appeal was accordingly allowed.
FULL TEXT OF THE ORDER OF ITAT DELHI
