Quasar India Limited Vs Assessment Unit (ITAT Delhi)
Delhi ITAT ITAT Sets Aside 148 Notice & Entire Assessment- Quashes Reopening for Crossing Rajeev Bansal “Surviving Period –
Assessee challenged reassessment u/s 147 r.w.s. 144B arising from notice u/s 148 dated 28.07.2022 alleging bogus sales of Rs.1,17,95,000/-. CIT(A)/NFAC had upheld the reopening & addition u/s 68.
In appeal, Assessee primarily contended that the notice u/s 148 was issued beyond the “surviving period” prescribed by Hon’ble Supreme Court in Rajeev Bansal & the Delhi HC judgment in Ram Balram Buildhome.
Assessee submitted that original notice u/s 148 was dated 24.05.2021. TOLA ended on 30.06.2021. SCN u/s 148A(b) was issued on 28.05.2022 & reply was filed on 09.06.2022. Therefore the last permissible date for issuing a valid notice u/s 148 was 17.07.2022. However, AO issued notice only on 28.07.2022, which was clearly beyond limitation. Assessee relied on Delhi HC ruling in GSM Auto Spares Pvt Ltd (WP(C) 4195/2025) applying Rajeev Bansal & Ram Balram. Department argued that the period till 12.06.2022 stood excluded in terms of Ashish Agarwal directions. Tribunal examined the timeline & held that the notice dated 28.07.2022 was issued after expiry of surviving limitation. Tribunal held that Rajeev Bansal, Ram Balram & GSM Auto Spares squarely apply, & therefore the reassessment notice itself is invalid.
