Section 148 Reassessment Invalid Where Section 153A Applied to Section 132A Requisition: ITAT Visakhapatnam

By CA Sandeep Kanoi Income Tax Judiciary August 26, 2026

TaxGuru Citation: 2026 taxguru.in 11543
Case Name: Krishna Mohan Potluri Vs ACIT (ITAT Visakhapatnam)
Appeal Number: Only available for paid members
Date of Judgement/Order: Only available for paid members
Related Assessment Year: 2019-20
Courts: All ITAT, ITAT Visakhapatnam

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Krishna Mohan Potluri Vs ACIT (ITAT Visakhapatnam)

Summary: The ITAT Visakhapatnam allowed both appeals filed by Krishna Mohan Potluri for Assessment Year 2019-20, holding that the proceedings initiated under Sections 148A and 148 pursuant to a requisition under Section 132A dated 29.11.2018 were invalid. Cash of Rs.28,00,000/- was found from the assessee during vehicle checking on 27.11.2018, following which his statement was recorded under Section 131 and a warrant under Section 132A was executed on 29.11.2018 for seizure of the cash. The Tribunal held that, as the requisition was made during the period when Section 153A applied to searches and requisitions made on or before 31.03.2021, the Assessing Officer was required to initiate proceedings under Section 153A. It held that the applicable limitation under Section 153B expired on 31.12.2020 and that the amended provisions of Sections 148A and 148, effective from 01.04.2021, could not subsequently be invoked. The Tribunal accordingly quashed the Section 148A proceedings, the order under Section 148A(d) and the notice under Section 148. Since the reassessment itself was vitiated, the other quantum grounds became infructuous. The consequential penalty was also deleted, and both appeals were allowed.

The amended reassessment framework under Sections 147 to 151, including Section 148A, is discussed in Reassessment of Income under Income Tax Act, 1961 as Per Finance Act, 2021.
For background on the statutory framework governing search and requisition assessments, see Assessment Under Section 153A of Income Tax Act, 1961.
The issue of limitation under Section 153B and the different statutory periods applicable to search and requisition assessments is also discussed in Period of limitation prescribed under Income-tax Act, 1961.
The broader issue of computing limitation in search assessments under Section 153B has also been examined in Controversy in computing period of limitation to frame search assessments.
The statutory framework concerning penalty under Section 271AAC and its relationship with income referred to in Section 69A is also addressed in Tax Treatment of Cash Credit U/s. 68, 69, 69A, 69B, 69C and 69D.

FULL TEXT OF THE ORDER OF ITAT VISAKHAPATNAM