Sandhya Roy Vs ITO (ITAT Kolkata)
Summary: The appeal before the Kolkata ‘SMC’ Bench of the Income Tax Appellate Tribunal arose from the order of the Commissioner of Income-tax (Appeals), National Faceless Appeal Centre, dated 16.02.2026 for AY 2015-16. The assessee had not originally filed a return of income and also did not file a return in response to the notice issued under section 148 on 31.03.2022. The reassessment concerned a Joint Development Agreement dated 22.01.2015 entered into by the assessee with a co-owner/developer arrangement. The Assessing Officer treated the JDA as a transfer of property under section 2(47), determined the total sale consideration at ₹48,68,542/- based on fair market value and cash consideration, took the cost of acquisition at NIL and completed assessment under sections 147, 144 and 144B at total income of ₹48,68,542/-, including long-term capital gains of the same amount.
Before the CIT(A), the assessee challenged both the validity of reassessment and the capital-gains addition. On limitation, the assessee relied upon the Supreme Court decisions concerning the reassessment transition regime, including Union of India vs. Ashish Agarwal and Union of India & Ors. Vs Rajeev Bansal. The CIT(A), however, held that the notice dated 31.03.2022 was issued before 01.04.2022 and therefore did not fall within the category of notices which the Department had conceded before the Supreme Court to be time-barred. It consequently applied the directions in Ashish Agarwal to the case and rejected the limitation challenge.
