Seema Goel Vs CIT(A) (ITAT Delhi)
Strikes Down July 2022 Notices for AYs 2015-16 & 2016-17- No Escape from Limitation
Assessee, an individual, filed returns declaring incomes of ₹27.83 lakh for AY 2015-16 & ₹45.68 lakh for AY 2016-17. Reassessment proceedings were initiated u/s 147 by issue of notice u/s 148, which after the decision of SC in Union of India Vs Ashish Agarwal were deemed as notices u/s 148A(b). Orders u/s 148A(d) were thereafter passed, followed by notices u/s 148 in July 2022. AO completed reassessments making substantive & protective additions aggregating ₹59.95 crore treating alleged LTCG as unexplained money u/s 69A, besides additions for undisclosed STCG & consequential levy of interest & initiation of penalty u/s 271(1)(c). CIT(A) upheld the additions substantially.
Before Tribunal, Assessee raised legal grounds challenging the very validity of reassessments on account of limitation, absence of jurisdiction, non-application of mind in approval u/s 151, lack of valid DIN, borrowed satisfaction & violation of natural justice. It was urged that SC in Union of India Vs Rajeev Bansal (469 ITR 46) categorically held that for AY 2015-16, TOLA provisions would not extend limitation & that Revenue itself conceded before SC that all notices u/s 148 issued on or after 01.04.2021 for AY 2015-16 must be dropped. Reliance was also placed on Delhi HC in MakeMyTrip India Pvt. Ltd. Vs DCIT & ITAT rulings in Sunita Salhotra & Guru Charan Singh, where similar reassessments were quashed.
