Yogesh Ashok Mundade Vs National Faceless Appeal Centre (NFAC) (ITAT Mumbai)
ITAT Mumbai held that reassessment notice under section 148 of the Income Tax Act beyond time limit of six year is barred by limitation and hence liable to be quashed. Accordingly, appeal allowed and notice quashed.
Facts- The case of the assessee was reopened by issuing notice u/s 148 of the Act on 29/07/2022 in response to which the assessee filed its return of income on 26/08/2022 declaring total income of Rs.4,93,450/-. The notice issued u/s 148 of the Act is under challenge.
Notably, the first notice u/s 148 of the Act was issued on 29/06/2021 and the proceedings were closed on 16/01/2023. Thereafter, pursuant to the decision of the Hon’ble Supreme Court in the case of Union of India vs. Ashish Agarwal [2023] 1 SCC 617, proceedings u/s 148AD was initiated by issuance of notice dated 29/07/2022. The challenge of the assessee is that the impugned notices have been issued beyond the time limit of six years which expired on 31/03/2021.
Conclusion- Held that notice u/s 148 of the Act was issued on 29/07/2022 whereas the original time limit for six years was 31/03/2021. Therefore, even under the TOLA, the time limit for issuance of notice u/s 148 of the Act had expired on 30/06/2021 and as per the concession made by the revenue, before the Hon’ble Supreme Court, all notices issued on or after 01/04/2021 will have to be dropped as they will not fall for concession during the period prescribed under TOLA. Hence, the impugned notice dated 29/07/2022 is admittedly barred by limitation and is accordingly set aside.
