Mittal Homes Pvt. Ltd. Vs ITO (ITAT Delhi)
Reassessment for AY 2015-16 Quashed as Time-Barred — ₹64 Lakh Section 68 Addition Set Aside Following Rajeev Bansal
The Delhi Bench of the ITAT allowed the appeal of Mittal Homes Pvt. Ltd. for AY 2015-16, holding that the notice issued under section 148 on 25.07.2022 was barred by limitation, and therefore the entire reassessment proceedings were without jurisdiction.
The reassessment was initiated based on search-related information alleging accommodation entries of ₹64 lakh. Although the AO followed the Ashish Agarwal procedure and passed an order under section 148A(d), the Tribunal examined the limitation under section 149 in light of the Supreme Court’s landmark ruling in Union of India v. Rajeev Bansal.
The ITAT noted that:
- For AY 2015-16, the six-year limitation under the old regime expired on 31.03.2022;
- The Revenue had conceded before the Supreme Court that all notices for AY 2015-16 issued on or after 01.04.2021 must be dropped;
- The notice under section 148 dated 25.07.2022 was therefore clearly time-barred;
- The extended ten-year limitation under amended section 149(1)(b) applies prospectively and cannot revive time-barred cases.
Relying on Rajeev Bansal (SC), Deepak Steel & Power (SC), and consistent High Court and Tribunal rulings, the ITAT quashed the reassessment and consequently set aside the ₹64 lakh addition under section 68. All grounds on merits were rendered academic.
Accordingly, the appeal was allowed in full.
FULL TEXT OF THE ORDER OF ITAT DELHI
