ITO Vs Neem Chand (ITAT Delhi)
AY 2015-16 Reopening After 01-04-2021 Is Dead on Arrival: TOLA Shield Not Available for AY 2015-16:- Delhi ITAT Applies Rajeev Bansal Logic
Delhi ITAT ‘D’ Bench in ITO, Hisar vs Neem Chand (ITA No.2404/Del/2025, AY 2015-16, order dated 23-12-2025) dismissed the Revenue’s appeal and upheld the order of CIT(A) quashing the reassessment, holding that all notices u/s 148 issued on or after 01-04-2021 for AY 2015-16 under the old regime are bad in law and cannot be saved by TOLA.
The case involved reopening based on bank deposits exceeding ₹10.42 crore. Original notice u/s 148 was issued on 29-06-2021 under the pre-amended reassessment provisions, followed by proceedings u/s 148A pursuant to Ashish Aggarwal. AO ultimately made an addition of ₹14.84 crore. CIT(A) annulled the reassessment on jurisdictional grounds.
Before ITAT, Revenue argued that TOLA extensions and the Ashish Aggarwal judgment revived and validated such notices, contending that limitation stood extended up to 30-06-2021. Tribunal rejected this contention, relying on the categorical stand of the Revenue itself before the Supreme Court, as recorded in Union of India vs Rajeev Bansal, that for AY 2015-16, notices issued on or after 01-04-2021 are not eligible for TOLA benefit and must be dropped.
ITAT noted that TOLA applies only where limitation was expiring between 20-03-2020 and 31-03-2021, whereas for AY 2015-16, the normal six-year limitation expired on 31-03-2022, making TOLA inapplicable. Consequently, issuance of notice u/s 148 on 29-06-2021 under the old regime suffered from inherent lack of jurisdiction, and subsequent 148A proceedings could not cure this foundational defect.
Accordingly, ITAT upheld CIT(A)’s order and held that the entire reassessment proceedings were void ab initio, dismissing Revenue’s appeal in toto.
Key takeaway: AY 2015-16 is a red-line year—any old-regime 148 notice issued on or after 01-04-2021 is unsustainable, and TOLA offers no lifeline, even if income involved exceeds ₹50 lakh
FULL TEXT OF THE ORDER OF ITAT DELHI
