Woodland Retails Private Limited Vs ITO (ITAT Kolkata)
ITAT Kolkata Quashes Reopening for A.Y. 2015-16 — TOLA Extension Not Applicable as per Supreme Court in Rajeev Bansal Case
Assessee challenged the reopening of assessment u/s 147 on the ground that the notice u/s 148 issued on 23.06.2021 was barred by limitation, as the benefit of extended limitation under the Taxation and Other Laws (Relaxation of Certain Provisions) Act, 2020 (TOLA) was not available for A.Y. 2015-16 after 01.04.2021.
Assessee relied on the Supreme Court decision in Union of India & Ors. v. Rajeev Bansal (469 ITR 46, SC, 03.10.2024), which held that the extended limitation under TOLA does not apply to assessment years where limitation had already expired before 01.04.2021. The same principle was reiterated by the Delhi High Court in Ibibo Group Pvt. Ltd. v. ACIT (WP No.17639/2022, 13.12.2024) & followed by various benches including Orbit Financial Capital & Coplama Products Pvt. Ltd..
Tribunal, following these authorities, held that the notice dated 23.06.2021 was issued beyond limitation and therefore invalid. Since the reopening was time-barred, the entire reassessment proceedings were quashed.
Held: Reopening u/s 147 for A.Y. 2015-16 based on TOLA extension is time-barred — notice u/s 148 issued on 23.06.2021 invalid; reassessment quashed.
