Aarti Bansal Vs ITO (ITAT Delhi)
The appeal concerns Assessment Year 2014-15 and challenges the reassessment proceedings initiated under Sections 147/148 of the Income Tax Act, 1961. The assessee contested the reassessment on multiple grounds, primarily arguing that the notice issued under Section 148 dated 22.07.2022 was barred by limitation and that all consequential reassessment actions were therefore void ab initio. The assessee further contended that the AO failed to comply with procedural requirements under Sections 143(2), 148A, and 149(1), and that the additions made under Section 69C were legally unsustainable. Additional grounds included lack of independent application of mind, mechanical approval by Pr. CCIT, and general non-compliance with statutory provisions.
The assessee’s counsel submitted that the notice under Section 148 was issued under the unamended provisions applicable before 01.04.2021 and could not validly be issued after the substitution brought by the Finance Act, 2021. Reliance was placed on the Supreme Court decision in Union of India vs. Ashish Agarwal (444 ITR 1, SC), which clarified that notices under the old Section 148 cannot be issued post-amendment. A subsequent notice issued under Section 148A(b) on 26.05.2022 and the AO’s order under Section 148A(d) on 22.07.2022 were argued to be ineffective due to limitation constraints.
