BANGAMATA TIE-UP PRIVATE LIMITED,KOLKATA V. ITO 13(1), KOLKATA

ITA 1332/KOL/2025

AI Insights

The case involves Bangamata Tie-up Private Limited, which appealed against the order of the National Faceless Appeal Centre, Delhi, concerning the assessment year 2015-16. The primary contention was the issuance of a notice under section 148 of the Income Tax Act, 1961, which the assessee argued was beyond the prescribed time limit as per section 149, influenced by the Supreme Court's decision in Union of India v. Rajeev Bansal. The Tribunal examined whether the reopening of the assessment for the year 2015-16 was permissible under the extended period provided by TOLA. After considering various precedents, including decisions from the Supreme Court and other High Courts, the Tribunal concluded that the notice was indeed time-barred, leading to the quashing of the assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 786050 (ITAT-KOLKATA)
• Duration Of Justice: 4 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2015-2016
• Appeal Filed On: 19-06-2025
• Other Referred Cases: Union of India v. Rajeev Bansal, NTPC v. CIT, Ibibo Group Pvt. Ltd. Vs. ACIT, Orbit Financial Capital, Coplama Products Pvt. Ltd., Deepak Steel & Power Ltd Vs CBDT
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SOUMI TRA GHOSH
• Assessee Lawyers: AKSHAY RINGASIA
• Keywords: Period of limitation; Reopening of assessment; Accommodation entries
• Section: 147; 148

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, KOLKATA BEFORE SHRI DUVVURU RL REDDY, VP AND SHRI RAJESH KUMAR, AM ITA No. 1332/KOL/2025 (Assessment Year: 2015-16) Bangamata Tie-up Private Limited 41, Central Plaza, BB Ganguly Street Bowbazar, Kolkata-700012, West Bengal Vs. ITO 13(1) Aaykar Bhawan, Kolkata-700069, West Bengal (Appellant) (Respondent) PAN No. AAECB9495M Assessee by : Shri Akshay Ringasia, AR Revenue by : Shri Soumitra Ghosh, DR Date of hearing: 21.08.2025 Date of pronouncement: 28.10.2025 O R D E R Per Rajesh Kumar, AM: This is an appeal preferred by the assessee against the order of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 06.05.2025 for the AY 2015-16. “That your assessee craves to plead an additional ground with the leave of this Tribunal under Rule 11 of the Income Tax (Appellate Tribunal) Rules, 1963 and ratio laid down by the Hon'ble Supreme Court in the case of NTPC 229 ITR 383. That the Ld. AO erred in issuing notice under section 148 beyond the time limit prescribed under section 149 and settled in case of Union of India v. Rajeev Bansal [2024] 167 taxmann.com 70/301 Taxman 238/469 ITR 46 (SC) That since the above ground goes to the root of the matter and permeates from facts already on record before the lower authorities and this Hon'ble Tribunal, your assessee prays for the admission of the same in the interest of justice.” 02. The only issue raised by the Counsel of the assessee is in respect of A.Y. 2015-16, being time barred by limitation in consonance with the Printed from counselvise.com Page | 2 ITA No.1332/KOL/2025 Bangamata Tie-up Private Limited; A.Y. 2015-16 decision of the Hon'ble Apex Court in the case of Union of India and other Vs. Rajeev Bansal [2024] 469 ITR 46 (SC), dated 03.10.2024. 03. The facts in brief are that the case of the assessee was reopened upon credible information regarding suspicious transactions in the bank account of the assessee maintained with ICICI bank Ltd. bearing A/c No.000605026646, was received through the Insight Portal. Upon considering the submission of assessee during the course of proceedings u/s 148A of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’), it was established that assessee had received amount of Rs.2,17,50,000/- from companies, which were struck off by ROC. The contention of the assessee was not accepted and the case was reopened as assessee was beneficiary of accommodation entries. Accordingly, proceedings u/s 147 of the Act were initiated vide notice issued u/s 148 of the Act on 29.06.2021. Thereafter notice u/s 148 was issued on 31/07/2022 in consequence of Hon’ble SC order dated 04/05/2022 in the case of Union of India & Ors. Vs. Ashish Agarwal which was served to the assessee and was complied with. Accordingly, the assessment was framed u/s 147 r.w.s 144/144B of the Act vide order dated 19.05.2023 by making an addition of Rs. 2,17,50,000/- which was also affirmed by ld. CIT(A). 04. The Ld. Counsel vehemently submitted before us that the notice issued u/s. 148 of the Act is barred by limitation as benefit of TOLA is not available to the assessment year 2015-16. The assessee relied on in defense of his arguments on the decision of Hon’ble Apex Court in the case of Rajeev Bansal (Civil Appeal No.8629 of 2024, reported in 167 taxmann.com 70 (SC) pronounced on 03.10.2024 which has been followed by Hon’ble Delhi Court in the case of Ibibo Group Pvt. Ltd. Vs. ACIT in WP(C) No. 17639/2022 order dated 13.12.2024 wherein it has Printed from counselvise.com Page | 3 ITA No.1332/KOL/2025 Bangamata Tie-up Private Limited; A.Y. 2015-16 been held that reopening of assessment for 2015-16 is not permissible in the extended period as per TOLA on and from 01.04.2021. The said decision has been followed by the Coordinate Bench in the case of Orbit Financial Capital, ITA No. 5812/M/2024. The ld. AR submitted that even the Coordinate Bench in the case of Coplama Products Pvt. Ltd. in ITA No. 1806/Kol/2024 pronounced on 31.01.2025 has followed the said decision. Thereafter, the Rajasthan High Court in WP No. 3667 of 2023 vide its order dated 27.01.2025 has taken the similar view. The Ld. AR, also relied on the decision of Hon’ble Apex Court in the case of Deepak Steel & Power Ltd Vs CBDT (2025) 174 taxmann.com 144(SC) and therefore, prayed that the assessment framed may kindly be quashed. 05. After hearing the rival contentions and perusing the material available on record, we find that undisputedly, the notice u/s. 148 of the Act was issued on 31.07.2022 which falls beyond the period of limitation as the relaxation granted by TOLA w.e.f. 01.04.2021 to 30.06.2021 is not available in the impugned assessment year as has been held in the case of Rajeev Bansal(supra) by the Hon’ble Apex Court and thereafter the said decision has been followed in the case of Ibibo Group Pvt. Ltd. (supra). We note that the Hon’ble Delhi High Court in the case of Ibibo Group Pvt. Ltd. (supra) held that the reopening of assessment for Ay 2015-16 is not permissible in the extended period as per TOLA on and from 01.04.2021. We also note that Hon’ble Rajasthan High Court in WP No. 3667 of 2023 dated 27.01.2025 has taken a similar view. The Hon’ble Apex court in the case of Deepak Steel & Power Ltd Vs CBDT(supra) has laid the same ratio. Considering the facts of the assessee’s case in the light of the aforesaid decisions, we are inclined to hold that the reopening of assessment is barred by Printed from counselvise.com Page | 4 ITA No.1332/KOL/2025 Bangamata Tie-up Private Limited; A.Y. 2015-16 limitation and is accordingly quashed. The assessment framed is also quashed. 06. In the result, the appeal of the assessee is allowed. Order pronounced in the open court on 28.10.2025. Sd/- Sd/- (DUVVURU RL REDDY) (RAJESH KUMAR) (VICE PRESIDENT) (ACCOUNTANT MEMBER) Kolkata, Dated: 28.10.2025 Sudip Sarkar, Sr.PS Copy of the Order forwarded to: BY ORDER, True Copy// Sr. Private Secretary/ Asst. Registrar Income Tax Appellate Tribunal, Kolkata 1. The Appellant 2. The Respondent 3. CIT 4. DR, ITAT, 5. Guard file. Printed from counselvise.com "