Vijaybhai Dayabhai Marvaniya Vs ITO (ITAT Rajkot)
Summary: The Rajkot ITAT held that the notice issued under Section 148 on 28 June 2022 was barred by limitation. The original notice had been issued on 11 June 2021, leaving only 19 days of the extended limitation period ending on 30 June 2021. After the decision in Union of India v. Ashish Agarwal, the material was supplied to the assessee on 17 May 2022, with two weeks to respond. Applying the “surviving period” principle laid down by the Supreme Court in Union of India v. Rajeev Bansal, the Tribunal held that the Revenue had to issue the consequential notice within the remaining 19 days after expiry of the response period, i.e., by approximately 19 June 2022. The judgment did not grant the AO an entirely fresh limitation period. Since the order under Section 148A(d) and the notice under Section 148 were issued only on 28 June 2022, the assumption of jurisdiction was invalid. Consequently, the reassessment under Sections 147 read with 144 was quashed and the ₹45-lakh addition under Section 69 was deleted.
FULL TEXT OF THE ORDER OF ITAT RAJKOT
Captioned appeal filed by the assessee, pertaining to Assessment Year (AY) 2018-19, is directed against the order under section 250 of the Income-tax Act, 1961 [hereinafter referred to as ‘the Act’] passed by the National Faceless Appeal Centre [hereinafter referred to as ‘NFAC’], dated 10.03.2026, which in turn arises out of an order passed by assessing officer u/s. 147 of the Act, dated 25.05.2023.
