Anil Kumar Garg Vs DCIT (ITAT Delhi)
Core Issue: Validity of reassessment proceedings in light of:
(I) Section 149(1) (new regime),
(II) Relaxation under TOLA, 2020, and
(III) Surviving limitation period post Ashish Agarwal and Rajeev Bansal.
Key Legal Questions Decided
1. Whether TOLA extends limitation for AY 2015-16?
2. Whether notices issued under the old section 148 between 01.04.2021 and 30.06.2021 for AY 2015-16 are valid?
3. Whether the final notice dated 21.07.2022 was within the surviving limitation period as explained by the Supreme Court in Rajeev Bansal?
FACT- The assessee pertains to Assessment Year 2015-16. The reassessment provisions under sections 147 to 151 were substituted by the Finance Act, 2021 w.e.f. 01.04.2021. Despite substitution of law, the Assessing Officer issued a notice under old section 148 on 30.06.2021.
Thereafter, pursuant to the decision of the Hon’ble Supreme Court in Ashish Agarwal, the said notice was treated as a deemed show-cause notice under section 148A(b). The Assessing Officer issued notice under section 148A(b) on 19.05.2022.The assessee filed objections on 02.06.2022.The Assessing Officer passed an order under section 148A(d) on 20.07.2022, rejecting the objections.
Subsequently, a fresh notice under section 148 (new law) was issued on 21.07.2022. The assessee challenged the reassessment proceedings contending that:
(I) TOLA is not applicable to AY 2015-16,
(II) notice under old law dated 30.06.2021 was invalid,
(III) the final notice dated 21.07.2022 was beyond the surviving limitation under section 149.
Findings of the CIT(A) / NFAC:- The CIT(A), National Faceless Appeal Centre, Delhi, vide order dated 26.09.2025, dismissed the legal grounds raised by the assessee challenging the validity of reassessment proceedings for AY 2015-16.
(i) The CIT(A) held that the notice issued under section 148 on 30.06.2021 was saved and validated in view of the judgment of the Hon’ble Supreme Court in UOI v. Ashish Agarwal.
(ii) It was observed that, pursuant to the said Supreme Court judgment, the notice issued under the old law was to be treated as a deemed show-cause notice under section 148A(b).
(iii) The CIT(A) further recorded that the Assessing Officer had:
(a) issued notice under section 148A(b),
(b) considered the reply of the assessee, and
(c) passed an order under section 148A(d),
before issuing a fresh notice under section 148 (new law).
(iv) On the issue of limitation, the CIT(A) relied upon the CBDT circulars issued under the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (TOLA) and held that the time limit for issuance of notice under section 148 stood extended up to 30.06.2021.
(v) The CIT(A) concluded that since the original notice under section 148 was issued on 30.06.2021, the reassessment proceedings were within time and not barred by limitation. The contention of the assessee that TOLA was not applicable to AY 2015-16 and that the notice issued on 21.07.2022 was beyond the surviving limitation under section 149 was not accepted.
(vi) Accordingly, the CIT(A) held that the reassessment proceedings were validly initiated and completed, and there was no jurisdictional infirmity in the action of the Assessing Officer.
Findings of the ITAT (Delhi Bench)
