Shreedhar Construction Vs ITO (ITAT Rajkot)
The assessee filed an appeal before the Tribunal against the order of the Commissioner of Income Tax (Appeals), NFAC, Delhi dated 25.06.2025, arising from reassessment proceedings under Sections 147 r.w.s. 144 of the Income Tax Act, 1961 for Assessment Year (AY) 2014-15.
The assessee raised multiple grounds, primarily challenging the validity of notice issued under Section 148. It was contended that the notice was beyond the “surviving period” as laid down by the Supreme Court in Union of India v. Rajeev Bansal (167 taxmann.com 70). The assessee also argued lack of jurisdiction, limitation issues, absence of notice under Section 143(2), mechanical approval under Section 151, and challenged the addition of Rs. 2,55,05,699/- on account of rent received from plant and machinery, along with penalty and interest.
The assessee, a partnership firm engaged in construction and renting of plant and machinery, had not originally filed its return for AY 2014-15. The Assessing Officer (AO) issued notice under Section 148 on 24.06.2021 under the old regime, within the extended time provided under the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (TOLA) and CBDT Notifications extending the limitation to 30.06.2021.
Following the Supreme Court’s decision in Union of India v. Ashish Agarwal (04.05.2022), such notices issued between 01.04.2021 and 30.06.2021 were deemed to be show cause notices under Section 148A(b) of the new regime. Accordingly, the AO issued notice under Section 148A(b) on 24.05.2022, passed order under Section 148A(d) on 26.07.2022, and issued fresh notice under Section 148 on 27.07.2022.
