AP Goyal Charitable Trust Vs ITO (ITAT Delhi)
No Second Innings for Revenue -Reassessment Beyond Limitation Void ab initio – ITAT Strikes Down Late 148 Notice -Tribunal Follows SC in Rajeev Bansal
Delhi Tribunal allowed the appeal of the Trust by holding that the reopening notice issued u/s 148 on 30.08.2022 was barred by limitation as per the timelines clarified by the Hon’ble Supreme Court in Ashish Agarwal & Rajeev Bansal.
Assessee is a public charitable trust registered u/s 12AA since 2004, engaged in educational & charitable activities filed return for AY 2014-15 declaring nil income. Based on search conducted in January 2018 on Podar group trusts, AO initiated reassessment. First notice u/s 148 dated 28.06.2021 was challenged before Delhi High Court, which restrained further action. Later, AO issued fresh notices u/s 148A(b) in May & June 2022 without supplying underlying materials. Ultimately, notice u/s 148 issued on 30.08.2022, leading to reassessment order dated 30.05.2023.
Assessee contended that the second reopening notice (30.08.2022) was time-barred. Relied on SC in Union of India vs. Rajeev Bansal (167 taxmann.com 70, 2024) & Ashish Agarwal (444 ITR 1, 2022). As per computation of extended limitation, AO could issue notice only up to 17.06.2022. Any notice beyond this was void ab initio.
