Festino Vincom Limited Vs ITO (ITAT Kolkata)
Notice u/s 148 issued on 31.03.2018 but served on 11.04.2018; service beyond 6-year limit u/s 149(1)(b) makes reopening time-barred & void ab initio-ITAT Kolkata quashes reassessment
Assessee filed its return on 29.09.2011 declaring income of ₹4,850, which was processed u/s 143(1). Later, AO reopened the case u/s 147 based on Investigation Wing information that ₹16.46 crore had allegedly been routed through layering of companies to Assessee. A notice u/s 148 was issued on 31.03.2018, & reassessment was completed u/s 144/147 making addition of ₹16.46 crore as undisclosed income. In appeal, Assessee remained non-compliant & CIT(A) confirmed the assessment.
Before Tribunal, Assessee raised a pure legal ground that the notice u/s 148 was served on 11.04.2018, i.e. after the limitation period of six years from the end of AY 2011-12 (which ended on 31.03.2018) as prescribed in Section 149(1)(b). Therefore, even if the notice was dated 31.03.2018, service beyond limitation renders it invalid & void ab initio. Assessee produced departmental email evidence showing actual date of service as 11.04.2018.
Tribunal condoned the delay of 496 days in filing the appeal by applying Supreme Court rulings in Improvement Trust vs Ujagar Singh & Collector vs Katiji, observing that COVID-19 disruption, email malfunction (Sify & Rediff accounts) & change of management constituted reasonable cause. Substantial justice should prevail over technicalities.
