ACIT Vs Prem Chand Pravesh Kumar (ITAT Delhi)
Late 148 Notice Fatal -: ITAT Delhi Holds Notice u/s 148 Time-Barred-Reassessment Quashed
AO had originally issued notice u/s 148 on 30.06.2021 under the old law (pre-Finance Act, 2021). Pursuant to SC ruling in Ashish Agarwal, a fresh process was initiated u/s 148A, with show-cause issued on 26.05.2022, reply filed on 09.06.2022 & order u/s 148A(d) passed on 26.07.2022. A fresh notice u/s 148 was issued on 26.07.2022, leading to reassessment u/s 147 r.w.s. 144B on 27.05.2023. NFAC upheld the reassessment, against which Revenue filed appeal & Assessee filed cross-objection.
Assessee contended that the fresh notice dated 26.07.2022 was barred by limitation, relying on SC judgment in Union of India Vs. Rajeev Bansal (469 ITR 46) & Delhi HC ruling in Ram Balram Buildhome Vs. ITO (445 ITR 1). As per computation of limitation, the extended due date for valid notice u/s 148 expired on 10.06.2022 (or 16.06.2022 with grace). Since notice was actually issued only on 26.07.2022, it was beyond time.
Tribunal observed that limitation provisions under Sec. 149 (as extended by TOLA & clarified in Rajeev Bansal) are mandatory. The AO could not issue a notice beyond 10.06.2022. Following SC & Delhi HC precedents, Tribunal held that the notice dated 26.07.2022 was time-barred, rendering the entire reassessment void ab initio.
