In Sanjeev Kumar Aggarwal v. Deputy Commissioner of Income Tax, Circle-52(1), Delhi (ITAT Delhi, order dated 09 January 2026), the Delhi Bench of the Income Tax Appellate Tribunal examined the validity of reassessment proceedings initiated for Assessment Year 2015-16 under Sections 147 and 148 of the Income-tax Act, 1961.

The reassessment was initiated pursuant to a notice issued under Section 148 on 26 July 2022, following the procedure prescribed under the new reassessment regime introduced by the Finance Act, 2021 and the Supreme Court decision in Union of India v. Ashish Agarwal. The assessment was completed on 25 May 2023. The assessee challenged the proceedings on the ground that the notice under Section 148 was barred by limitation.

The Tribunal noted that, as per the amended provisions of Section 149 and the authoritative judgment of the Supreme Court in Union of India v. Rajeev Bansal, reassessment notices for AY 2015-16 could not be issued after 31 March 2022, as the extended limitation under the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (TOLA) was not applicable to that assessment year. The Revenue had itself conceded before the Supreme Court that all notices issued on or after 1 April 2021 for AY 2015-16 were liable to be dropped.

The Tribunal further relied on the decisions of the Delhi High Court in Sarthak Gupta v. ITO and IBIBO Group Pvt. Ltd. v. ACIT, wherein reassessment notices issued on identical facts and on the same date were held to be time-barred. Applying these binding precedents, the Tribunal held that the notice dated 26 July 2022 was clearly beyond the permissible period of limitation.

Accordingly, the Tribunal concluded that the reassessment proceedings and the consequent assessment order were without jurisdiction and barred by limitation, set aside the assessment order, and allowed the assessee’s appeal.

Source Link- https://itat.gov.in/public/files/upload/1767939712-uYrARe-1-TO.pdf

Disclaimer
This content is shared strictly for general information and knowledge purposes only. Readers should independently verify the information from reliable sources. It is not intended to provide legal, professional, or advisory guidance. The author and the organisation disclaim all liability arising from the use of this content. The material has been prepared with the assistance of AI tools.