Pooja Prabhakar Vs ITO (ITAT Chennai)
Reassessment Time-Barred Under New Law: ITAT Chennai Quashes s.148 Notice Dated 31.07.2022 for AY 2014-15
Chennai ITAT ‘D’ Bench, in Pooja Prabhakar vs. ITO (ITA No.3045/Chny/2025, AY 2014-15, order dated 26.12.2025), allowed the assessee’s appeal by condoning 178 days’ delay, admitting additional legal grounds, and quashing the reassessment u/s 147 r.w.s. 144 as barred by limitation and void ab initio.
The assessment was reopened based on alleged bank credits of ₹1.99 crore and investment in residential property of ₹3.81 crore. Proceedings were initiated by the Jurisdictional AO (JAO) through an order u/s 148A(d) and notice u/s 148 both dated 31.07.2022, after approval from the PCIT-3, Chennai. The AO completed the reassessment on 23.05.2023, making additions u/s 69A and 69, determining total income at ₹5.88 crore.
The CIT(A), NFAC dismissed the appeal in limine on limitation. The Tribunal held that the delay was bona fide, relying on SC in Collector, Land Acquisition v. Mst. Katiji, and condoned the delay. It further admitted the pure legal grounds under NTPC (SC) and Jute Corporation (SC).
On merits, the ITAT held that for AY 2014-15, the first proviso to s.149 (post-Finance Act, 2021) bars issuance of any notice u/s 148 on or after 01.04.2021. The notice dated 31.07.2022 was therefore ex-facie time-barred. The Bench followed:
– SC in Union of India v. Rajeev Bansal,
– Bombay HC in Godrej Industries Ltd. (notice dated 31.07.2022 for AY 2014-15 held barred), and
– Coordinate Bench decisions (including Tyagi Pipe Craft Pvt. Ltd.).
Accordingly, the ITAT quashed the notice u/s 148 and the reassessment order, holding the assumption of jurisdiction invalid. Having annulled the reassessment on limitation, all other grounds were left open as academic
FULL TEXT OF THE ORDER OF ITAT CHENNAI
This appeal preferred by the assessee is directed against the order dated 25.08.2025 passed by the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)”). The said order emanates from the assessment framed by the National Faceless Assessment Centre (hereinafter referred to as the “AO”) u/s.147 r.w.s 144 of the Income-tax Act, 1961 (hereinafter referred to as the “Act”), vide assessment order dated 23.05.2023, for the Assessment Year 2014-15.
