Ravindra Vs ITO (ITAT Delhi)
Summary: These appeals were filed by the assessee against separate orders of the National Faceless Appeal Centre, Delhi, relating to Assessment Year 2015-16. ITA No. 161/DEL/2026 concerned the quantum proceedings, while ITA No. 162/DEL/2026 concerned the penalty proceedings. The assessment had been reopened under Section 148 of the Income-tax Act, 1961 and the assessment order was ultimately passed on 27.02.2024. A penalty order dated 05.08.2024 was also passed.
The assessee sought admission of additional grounds challenging the jurisdictional validity of the reassessment. The Tribunal admitted the additional grounds, relying upon the principle laid down in National Thermal Power Corporation v. CIT, (1998) 229 ITR 383 (SC), that a legal ground going to the root of the matter could be raised before the Tribunal.
The assessee principally contended that the notice under Section 148 dated 03.04.2022 was barred by limitation for AY 2015-16. The assessee relied upon the substituted reassessment provisions introduced by the Finance Act, 2021, particularly the first proviso to Section 149(1). The assessee argued that no notice under Section 148 for AY 2015-16 could be issued on or after 01.04.2022 and that the impugned notice dated 03.04.2022 was therefore beyond limitation. It was also submitted that the information regarding cash deposits in the Punjab National Bank account had been wrongly taken as Rs.90,00,000/- instead of Rs.45,00,000/- and that the amount was below the Rs.50 lakh monetary threshold.
