ACIT Vs Manish Financial (ITAT Mumbai)
ITAT Mumbai held that validity of notice issued under section 148 of the Income Tax Act for AY 2015-16 is six year which expires on 31.03.2022. Accordingly, notice issued on 29.07.2022 u/s. 148 is barred by limitation.
Facts- AO reopened the assessment by issuing notice under section 148 of the Act dated 29.06.2021 for the reason that the assessee has derived fictitious loss in the trading of equity derivatives and the assessee is a beneficiary of bogus capital gains. The said notice become deemed to be a notice issued under section 148A(b) of the Act, as per the directions of the Hon’ble Supreme Court in the case of Union of India vs Ashish Agrawal (Civil appeal No.3005/2022). The AO subsequently passed the order under section 148A(d) on 29.07.2022 after rejecting the objections raised by the assessee with regard to the alleged fictitious transactions. The AO also issued notice under section 148 of the Act on 29.07.2022. The assessment was completed under section 147 of the Act in which the AO made an addition of Rs. 13,69,49,047/- considering the loss claimed by the assessee as non-genuine.
CIT(A) considered the issue on merits and by placing reliance on various judicial pronouncements deleted the addition made by the AO. Being aggrieved, revenue has preferred the present appeal.
