The Income Tax Appellate Tribunal, Delhi Bench ‘D’, adjudicated the appeal filed by the Revenue against the order passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, under Section 250 of the Income-tax Act, 1961, arising out of reassessment proceedings for Assessment Year 2015-16.

The case was reopened on the basis of information regarding large cash deposits aggregating to ₹10.42 crore in the assessee’s ICICI Bank account during the relevant financial year. Proceedings under Section 148A were initiated pursuant to the directions of the Hon’ble Supreme Court. After issuance of show-cause notice and passing of an order under Section 148A(d), notice under Section 148 was issued, followed by reassessment proceedings. The Assessing Officer ultimately made an addition of ₹14.84 crore.

On appeal, the CIT(A) quashed the reassessment holding that the notice under Section 148 issued on 29.06.2021 for AY 2015-16, following the pre-amended reassessment regime, was without jurisdiction. The CIT(A) relied upon the interpretation of the amended Section 149, the scope of the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (TOLA), and the binding ratio laid down by the Hon’ble Supreme Court in Union of India vs. Ashish Aggarwal. The CIT(A) further relied on the concession recorded by the Hon’ble Supreme Court, as explained in Rajeev Bansal, that notices for AY 2015-16 issued on or after 01.04.2021 are not eligible for the benefit of TOLA.

Before the Tribunal, the Revenue contended that the reassessment proceedings were valid in view of TOLA extensions, CBDT Instructions, and judicial precedents holding that an order under Section 148A(d) is only a prima facie opinion. However, the Tribunal noted that for AY 2015-16, the limitation under the unamended law expired on 31.03.2022 and that TOLA applied only to those cases where limitation was expiring between 20.03.2020 and 31.03.2021.

The Tribunal upheld the findings of the CIT(A) that notices issued on or after 01.04.2021 for AY 2015-16 under the old reassessment regime were invalid and could not be saved by TOLA or the amended provisions. Consequently, the assumption of jurisdiction itself was held to be bad in law, rendering the reassessment order unsustainable.

Accordingly, the appeal filed by the Revenue was dismissed. 

Link to download the Order

https://mytaxexpert.co.in/uploads/1766570113_1766486008sfV6EB1TO.pdf