DCIT Vs Novotech Steel & Alloys Private Limited (ITAT Mumbai)
Reopening Cannot Be Quashed Using New Law Retrospectively – Matter Remanded to CIT(A)
Mumbai ITAT held that the CIT(A) erred in quashing a reassessment notice by applying the amended provisions of Section 149 (Finance Act, 2021) retrospectively.
The reassessment notice was issued on 18.03.2020 (pre-amendment regime). However, the CIT(A) quashed it by applying the post-01.04.2021 limitation of 3 years (where escaped income < ₹50 lakh). The Tribunal clarified that such amended provisions cannot be applied to notices issued prior to 01.04.2021, and the validity must be tested under the old law.
Accordingly, the ITAT set aside the CIT(A)’s order and restored the matter back for fresh adjudication, directing that the issue be examined as per the correct legal position. Other grounds were left open. The Revenue’s appeal was partly allowed.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
1. The present appeal preferred by the Revenue is directed against the Order, dated 09/10/2025, passed by the National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as the ‘CIT(A)’] whereby Learned CIT(A) had allowed the appeal against the Assessment Order, dated 23/09/2021, passed under Section 147 read with Section 144B of the Income Tax Act, 1961 [hereinafter referred to as ‘the Act’], for the Assessment Year 2015-2016.
