Bhushan Lal Pandita Vs Assessment Unit Income Tax Department (ITAT Delhi)
Reassessment Notice Dated 31.03.2021 for AY 2015-16 Held Time-Barred: ITAT Delhi Quashes Proceedings
The Delhi Bench of the ITAT allowed the assessee’s appeal and quashed the reassessment proceedings initiated under section 148 for AY 2015-16, holding the notice dated 31.03.2021 to be barred by limitation.
Relying on the Supreme Court judgment in Union of India v. Rajeev Bansal (469 ITR 46), the Tribunal noted that the Revenue had conceded that for AY 2015-16, all reassessment notices issued on or after 01.04.2021 are liable to be dropped, as they do not fall within the extended timelines under the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (TOLA).
The ITAT held that although such notices were initially validated pursuant to the Supreme Court decision in Union of India v. Ashish Agarwal, the benefit of TOLA does not extend to AY 2015-16. Consequently, the notice dated 31.03.2021—treated as issued after 01.04.2021 in terms of the Ashish Agarwal framework—was time-barred. The assessment framed pursuant thereto was declared void ab initio and quashed. The appeal was allowed.
FULL TEXT OF THE ORDER OF ITAT DELHI
This appeal is filed by the assessee against the order of the Ld.Commissioner of Income Tax (Appeals)/ NFAC, Delhi vide order dated 30.03.2021 for the A.Y. 2015-16.
