Nilesh Shirish Mehta Vs ITO (ITAT Mumbai)
Late 148 Notices for AY 2015-16 Invalid – ITAT Mumbai Grants Full Relief-All Additions Quashed as Reassessment Void-Ab-Initio
Assessee, Nilesh Shirish Mehta, filed appeal against the order of CIT(A), NFAC, Delhi dated 03.06.2025. The case was reopened on the basis of information that Assessee had generated non-genuine profit/loss on illiquid derivatives through Goodluck Securities Pvt. Ltd. & SPS Share Brokers Pvt. Ltd. AO issued notice u/s 148 dated 28.07.2022, invoking SC decision in Union of India Vs Ashish Agarwal (2022 SCC Online SC 543). Assessment was completed at Rs.1.37 crore after making additions of Rs.1.33 crore alleged loss on reversal trades, Rs.33.10 lakh u/s 68 as unexplained cash credits, & Rs.10.91 lakh u/s 69C as unexplained expenditure on commission.
Before Tribunal, Assessee challenged reassessment proceedings, arguing that the notice was invalid being time-barred & that no opportunity of cross-examination was given for third-party statements. Tribunal noted that the impugned notice dated 28.07.2022 was issued for AY 2015-16 relying on Ashish Agarwal. The controversy stands settled by SC in Union of India Vs Rajeev Bansal (CA No.8629/2024, 2024 SCC Online SC 754), where the Department itself conceded that for AY 2015-16 reassessment notices issued after 01.04.2021 are not valid. SC dismissed SLP in ACIT Vs Nehal Ashit Shah following the same principle.
