Sushma Mimani Vs ITO (ITAT Kolkata)
Kolkata Tribunal held that reassessment initiated u/s 147 r.w.s. 148 was barred by limitation as the notice u/s 148 was issued after expiry of statutory time limit.
Assessee filed return for AY 2013-14 declaring income of ₹6,10,297/-. Original reassessment notice u/s 148 was issued on 30.06.2021 (last permissible date under extended limitation by TOLA). Pursuant to SC ruling in UOI vs. Ashish Agarwal (2022), such notices issued between 01.04.2021 & 04.05.2022 were deemed as notices u/s 148A(b). AO issued notice u/s 148A(b) on 25.05.2022 granting 14 days for reply. Thus, time expired on 08.06.2022. However, fresh notice u/s 148 was issued on 26.07.2022- clearly beyond limitation.
Following SC in Rajeev Bansal (469 ITR 46) & Delhi HC in ADM Agro Industries Latur & Vizag Pvt Ltd. vs. ACIT (W.P.(C) 4583/2023, 06.05.2025), Tribunal’s observed limitation for issuing notice u/s 148 had already expired on 08.06.2022. Since no time was left with AO after exclusion provisions, issuance of notice on 26.07.2022 was invalid. Once limitation period is over, jurisdiction to reopen ceases. Tribunal extracted detailed reasoning from Ram Balram Buildhome Pvt Ltd vs. ITO (Delhi HC, 2025) reiterating that AO cannot issue notice u/s 148 once statutory time has expired even after giving effect to exclusions under provisos to s.149(1). Tribunal held that reassessment proceedings initiated vide notice dated 26.07.2022 were barred by limitation. Accordingly, reopening was quashed & appeal allowed in favour of Assessee.
