ACIT Vs Vihar Infrastructure Private Limited (ITAT Mumbai)
Reassessment Time-Barred Despite TOLA SC Relaxation – Notice Held Void
Mumbai ITAT upheld the quashing of reassessment proceedings, holding that the notice u/s 148 issued on 27.07.2022 was time-barred, even after considering TOLA extensions and Supreme Court rulings in Ashish Agarwal and Rajeev Bansal.
The Tribunal explained that:
- Old notices issued between 01.04.2021–30.06.2021 are deemed as 148A(b) notices under Ashish Agarwal
- As per Rajeev Bansal, “surviving time” must be computed from the original notice date till 30.06.2021
- Further, exclusion applies for:
- Time till supply of information/material
- Time granted to assessee to respond
Applying this, the ITAT found:
- Original notice: 29.06.2021
- Surviving time: only 2 days
- After assessee’s reply (12.06.2022), the last permissible date to issue fresh 148 notice was 14.06.2022
- However, actual notice was issued on 27.07.2022, beyond limitation
Accordingly, the Tribunal held that the reassessment notice was barred by limitation and void ab initio, and therefore the entire reassessment failed, irrespective of merits.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
The Revenue has been filed against the impugned order dated 05/08/2025, passed under section 250 of the Income Tax Act, 1961 (“the Act”) by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, [“learned CIT(A)”], for the assessment year 2014-15.
