Bhargav Ram Munagapati Vs ITO (ITAT Visakhapatnam)
AY 2015-16 Reassessment Quashed—148 Notice Dated 03.04.2022 Held Time-Barred Beyond Six-Year Limit under Section 149(1)(b)
The Tribunal held that the reassessment proceedings initiated for AY 2015-16 are without jurisdiction, since the notice under section 148 dated 03.04.2022 was issued beyond the prescribed period of six years as per the first proviso to section 149(1)(b). Following the binding ratio of the Hon’ble Supreme Court in Union of India v. Rajeev Bansal and Deepak Steel and Power Ltd., it was concluded that for AY 2015-16, all notices issued on or after 01.04.2021 will have to be dropped and that TOLA is not applicable. The Bench also relied on the Co-ordinate Bench decision in Vaka Ghanta Nageswara Rao, which held that time limit expires on 31.03.2022; therefore, a notice issued thereafter is invalid and barred by limitation. In view of these findings, the assessment completed u/s 147 r.w.s. 144 was held unsustainable and liable to be quashed, and other grounds were not adjudicated.
FULL TEXT OF THE ORDER OF ITAT VISAKHAPATNAM
1. This appeal is filed by the assessee against order passed by the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal centre, Delhi [hereinafter in short “Ld.CIT(A)”] vide DIN & Order No.ITBA/NFAC/S/250/2024-25/1073096685(1) dated 10.02.2025 for the A.Y.2015-16 arising out of order passed under section 147 r.w.s. 144 of Income Tax Act, 1961 (in short ‘Act’) dated 23.01.2024.
