ITO Vs Savita Aggarwal (ITAT Delhi)
AY 2015-16 Reopening Time-Barred: TOLA Extension Not Available – Revenue Appeal Dismissed
Delhi ITAT held that reassessment proceedings initiated for AY 2015-16 were barred by limitation, as benefit of TOLA extension is not available for this assessment year.
Though the Assessee had succeeded before NFAC on merits of addition u/s 68 relating to alleged bogus entries, Revenue carried the matter in appeal. Assessee, by way of Rule 27 application, raised an additional legal ground challenging the very jurisdiction of reopening on the ground of limitation u/s 149(1).
ITAT noted that notice u/s 148 dated 24-05-2021 for AY 2015-16 was issued beyond the permissible time limit, and that the issue now stands conclusively settled by Hon’ble Supreme Court in UOI vs. Rajeev Bansal (2024), wherein the Department itself admitted that TOLA does not extend limitation for AY 2015-16. Reliance was also placed on Delhi HC in IBIBO Group Pvt. Ltd. (WP(C) 17639/2022 dated 13-12-2024), quashing identical reassessment proceedings.
In view of settled law, ITAT sustained the jurisdictional objection under Rule 27 and dismissed Revenue’s appeal, holding the reassessment to be void ab initio.
FULL TEXT OF THE ORDER OF ITAT DELHI
This appeal is preferred by the assessee against the order dated 24.06.2024 of the Ld. National Faceless Appeal Centre (NFAC) Delhi (hereinafter referred as Ld. First Appellate Authority or in short Ld. ‘FAA’) in DIN & Order No: ITBA/NFAC/S/250/2024-25/1065967388(1) arising out of the assessment order dated 17.05.2023 u/s 147 r.w.s 144B of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) passed by the Assessment Unit, Income Tax Department, for AY: 2015-16.
