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 Suman Jeet Aggarwal v. ITO, 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.
Cases Discussed
- Sumanjeet Aggarwal vs. ITO (Delhi HC), (2022) 143 taxmann.com 11 (Del)
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.
2. I come to the assessee’s first and foremost legal ground herein seeking to challenge validity of the reopening itself. This is for the precise reason that the learned Assessing Officer himself makes it clear in his assessment order dated 21.2.2023 that section 148 notice had been issued to the assessee on 31.03.2022 itself by way of email which should received on 1.4.2022 at 2.12 AM.
3. That being the case, learned counsel invites my attention to page “10” in the assessee’s paper book indicating the said notice to have been actually issued on 1st April, 2022 only. This clinching fact has gone unrebutted from the Revenue side. Meaning thereby that the impugned action of both the learned lower authorities in initiating the reopening herein under the old tax regime on or after 1.4.2021 could not be held as sustainable once the new “law” came into effect in light of Sumanjeet Aggarwal vs. ITO (2022) 143 taxmann.com 11 (Del). I thus quash impugned reopening initiated against the assessee in very terms therefore.
4. All remaining pleadings on merits, stood rendered academic.
5. In the result, the assessee’s appeal is allowed.
Order pronounced in the open court on 8th July, 2026.
