DCIT Vs LT Foods Limited (ITAT Delhi)
Reopenings for AYs 2014-15 & 2015-16 Time-Barred: ITAT Quashes Section 148 Notices Applying Rajeev Bansal Ruling
The Delhi ITAT dismissed the Revenue’s appeals and allowed the assessee’s cross-objections by quashing reassessment proceedings for AYs 2014-15 and 2015-16 as barred by limitation. For AY 2015-16, the Tribunal relied on the Revenue’s own concession before the Supreme Court in Rajeev Bansal and Deepak Steel & Power Ltd. that all notices issued on or after 01.04.2021 for that year must be dropped, holding the notice and consequent assessment to be without jurisdiction.
For AY 2014-15, the Tribunal applied the “surviving period” concept laid down by the Supreme Court in Rajeev Bansal. Since the assessee filed its reply to the deemed show cause notice on 20.06.2022, the Assessing Officer could have issued a fresh notice under Section 148 only up to 17.07.2022. As the notice was actually issued on 28.07.2022, it was held to be beyond limitation and void. Consequently, both reassessment notices and the resultant assessment orders were quashed, rendering all other issues academic.
FULL TEXT OF THE ORDER OF ITAT DELHI
The above captioned bunch of appeals by the Revenue and Cross Objections by the assessee are preferred against the separate orders of the ld. CIT(A) Delhi dated 05.07.2024 for A.Ys 2014-15 and 2015-16 respectively.
