Global Emerging Markets India Limited Vs Assessment Unit (ITAT Delhi)
Reopening Time-Barred Post Rajeev Bansal: ITAT Quashes Section 148 Notice Issued Beyond Limitation
The Delhi Bench “B” of the ITAT, in Global Emerging Markets India Ltd. v. NFAC (AY 2013-14), quashed the reassessment proceedings holding that the notice issued under section 148 on 28.06.2022 was barred by limitation, even after applying the relaxation framework laid down in Ashish Agarwal and clarified by the Supreme Court in Rajeev Bansal.
The Tribunal analysed the entire statutory timeline in detail, noting that the original notice under the old regime was issued on 30.06.2021, leaving only one day of limitation. After giving effect to the exclusions mandated by the Supreme Court—namely the period covered by Ashish Agarwal, the time taken for furnishing material, and the reply period under section 148A(b)—the extended last permissible date for issuance of a valid section 148 notice worked out to 08.06.2022 (as tabulated in the order).
Since the actual notice under section 148 was issued on 28.06.2022, the Tribunal held it to be clearly beyond the surviving limitation period, squarely hit by the ratio of Supreme Court in Union of India v. Rajeev Bansal and the Delhi High Court decision in Ram Balram Buildhome.
Once the foundational notice was held to be time-barred, the entire reassessment was declared void ab initio, and all other grounds on merits were rendered academic. Accordingly, the assessee’s appeal was allowed in full, quashing the reassessment proceedings.
FULL TEXT OF THE ORDER OF ITAT DELHI
This appeal of the Asessee arises out of the order of the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘Ld. CIT(A)’] in Appeal No.NFAC/2012-13/10290741 dated 09.07.2024 against the order passed by Assessment Unit, Income Tax Department, (hereinafter referred to as the ‘Ld. AO’) u/s 147 r.w.s 144B of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) on 19.05.2022.
