Sanskriti Build-Dev Private Limited Vs ITO (ITAT Jaipur)
Reassessment Dies at Birth – Notice Beyond 26.06.2022 -Notice Bey ond Surviving Period Under TOLA Held Invalid
Background
- Issue: Validity of reassessment proceedings initiated u/s 148.
- AO: Issued notice u/s 148 on 23.06.2021 (old regime). Later, order u/s 148A(d) passed on 27.07.2022, confirming escaped income.
- CIT(A): Confirmed AO’s action on 29.01.2025.
Assessee’s Arguments
- Notice dated 27.07.2022 u/s 148A(d) was time-barred, relying on SC ruling in Union of India & Ors. Vs. Rajeev Bansal (2024) 167 Taxman 70.
- As per SC, AO had only 8 days surviving (23.06.2021 to 30.06.2021) under TOLA to issue fresh notice after assessee’s reply.
- Hence, notice issued on 27.07.2022 was beyond limitation & void.
Revenue’s Arguments
- Relied on CBDT Instruction No.1/2022 & SC’s Rajeev Bansal judgment, arguing limitation clock restarted after assessee’s reply (19.06.2022).
- Claimed AO had full 61 days (till 18.08.2022) to act, and issuance on 27.07.2022 was within time.
- Also pointed out that assessee’s writ petition challenging notice was dismissed by Rajasthan HC on 21.08.2025.
Tribunal’s Findings /Decision
- Examined record & SC judgment in Rajeev Bansal.
- Notice u/s 148 issued on 23.06.2021 – only 8 days remained till 30.06.2021 under TOLA.
- Assessee filed reply on 19.06.2022.
- Therefore, AO had to act within 8 days from reply, i.e., by 26.06.2022.
- Since AO issued order u/s 148A(d) only on 27.07.2022, it was beyond limitation.
- Consequently, notice & reassessment proceedings were invalid.
- Appeal allowed.
- Reassessment proceedings & order of CIT(A) set aside as time-barred & void ab initio.
- Appeal allowed in favour of assessee.
As per SC in Rajeev Bansal, AO must complete 148A(d) & issue fresh notice within surviving limitation period preserved under TOLA. Delay beyond this renders reassessment void.
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