Neeta Bhambhani Vs DCIT (ITAT Bangalore)
Reassessment Notice Issued After 31-03-2024 Held Time-Barred – First Proviso to Sec.149(1) Overrides 148A Proceedings – Entire Reassessment Quashed – ITAT Bangalore
In IT(IT)A No.3124/Bang/2025, AY 2017-18, the assessee, a non-resident individual, challenged reassessment proceedings initiated u/s 147 based on information of cash deposits and interest income. The Tribunal first admitted additional legal grounds relating to limitation, holding that pure questions of law affecting jurisdiction can be raised at any stage.
The core issue was whether notice u/s 148 dated 12-04-2024 for AY 2017-18 was valid. ITAT held that under the first proviso to amended Sec.149(1), reassessment notices for years prior to 01-04-2021 cannot be issued if they were already barred under the old six-year limitation. Since the last permissible date under the old regime expired on 31-03-2024, the notice issued after that date was invalid and without jurisdiction, even though Sec.148A(b) proceedings had begun earlier. The Tribunal clarified that exclusion of time for Sec.148A proceedings cannot revive a notice that is already time-barred.
Relying on SC ruling in Union of India v. Rajeev Bansal and Karnataka High Court decisions, ITAT held that procedural compliance under Sec.148A does not cure limitation defects. Consequently, the reassessment order passed u/s 143(3) r.w.s.147 r.w.s.144C(13) was quashed in entirety, and other issues on merits (cash deposit u/s 69A & NRE bond interest) were treated as academic.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
