PCIT Vs Vikas Sharma (Allahabad High Court)
Summary: The Allahabad High Court dismissed the Revenue’s Income Tax Appeal arising from the order of the Income Tax Appellate Tribunal, Delhi Bench ‘E’, New Delhi dated 30.12.2025 in ITA No. 3495/DEL/2025 for Assessment Year 2013-14. The Tribunal had dismissed the Revenue’s appeal and confirmed the first appeal order passed by the CIT Appeal on 05.03.2025.
The appeal before the High Court was filed under Section 365 of the Income Tax Act, 2025. The dispute concerned the limitation applicable to reassessment proceedings arising from a notice under Section 148 of the Income Tax Act, 1961.
The Court recorded that the notice under Section 148 had been issued for AY 2013-14 on 09.06.2021. Referring to the Supreme Court’s decision in Union of India Vs. Ashish Agarwal, 2022 SCC OnLine SC 543, the Court noted the 15-day timeline provided to the Revenue to furnish the ‘reasons to believe’ and recorded that the period expired on 30.06.2021. The order records that the Revenue furnished the ‘reasons to believe’ on 17.05.2022, and that the assessee did not file any reply thereto.
Relying on the Supreme Court’s decision in Union of India Vs. Rajeev Bansal, 2024 SCC OnLine SC 2693, the Court recorded that the Revenue had surviving limitation of 22 days, computed with reference to the original notice dated 09.06.2021 and the end date of 30.06.2021. On that basis, the Revenue could issue a show-cause notice under Section 148(A)(b), at the latest, by 22.06.2022. However, the show-cause notice was issued on 29.06.2022, after the available period had expired.
