HARESHBHAI PARSHOTTAMBHAI VEKARIYA,AHMEDABAD V. NFAC, DELHI PRESENT JURISDICTION - THE ITO, WARD-7(2)(1), AHMEDABAD

ITA 1586/AHD/2025

AI Insights

The case involves an appeal by Hareshbhai Parshottambhai Vekariya against the order of the Commissioner of Income Tax (Appeals) - National Faceless Appeal Centre, Delhi, concerning the Assessment Year 2017-18. The primary contention was the validity of the reassessment notice issued under section 148 of the Income Tax Act, which the appellant argued was time-barred and issued without proper authorization (DIN). The Tribunal examined the timelines and legal provisions applicable to the issuance of such notices and found discrepancies that rendered the notice invalid, leading to the quashing of the reassessment proceedings.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 784528 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-11-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Appeal Filed On: 19-08-2025
• Other Referred Cases: Union of India v/s. Rajeev Bansal [2024] 167 taxmann.com 70 (SC)
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAVINDRA
• Assessee Lawyers: BIREN SHAH
• Keywords: Reassessment proceedings; Period of limitation; Time period of passing order
• Section: 148

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER ITA No.1586/Ahd/2025 (Assessment Year: 2017-18) Hareshbhai Parshottambhai Vekariya, B/53, Bhumipark Society, Khodiyarnagar Road, Khodiyarnagar, Ahmedabad Ahmedabad-382350. [PAN :AGSPV8227 E] Vs. National Faceless Appeal Centre, Delhi (Present Jurisdiction The Income Tax Officer, Ward-7(2)(1), Ahmedabad.) (Appellant) .. (Respondent) Appellant by : Shri Biren Shah, with Shri Gulab Thakor, ARs Respondent by: Shri Ravindra, Sr. DR Date of Hearing 04.11.2025 Date of Pronouncement 14.11.2025 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:- This appeal is filed by the Assessee against the appellate order dated 18.06.2025 passed by the Commissioner of Income Tax (Appeals)National Faceless Appeal Centre, Delhi, relating to the Assessment Year 2017-18. 2. The assessee has raised the following grounds of appeal: 1. In law and on the facts and in the circumstances of the case of appellant, order passed by Ld. CIT(A) dated 18.06.2025 is bad in law and deserves to be quashed. Printed from counselvise.com ITA No. 1586/Ahd/2025 Asst. Year : 2017-18 - 2– 2. In law and on the facts and in the circumstances of the case of appellant, Ld. CIT(A) has grossly erred in not adjudicating ground relating to the validity of reassessment proceeding despite the fact that notice issued u/s 148 of the Act by AO on 31.08.2022 is time barred as per decision of Hon'ble Supreme in the case of Union of India v/s. Rajeev Bansal [2024] 167 taxmann.com 70 (SC) Judgement dated 3rd October, 2024 and thus deserves to be quashed. 3. In law and in the facts and circumstances of the case, Ld. CIT(A) has grossly erred in not adjudicating ground relating to the validity of reassessment proceeding despite the fact that Notice issued u/s 148 by Jurisdictional Assessing officer is in violation of Section 151A of the Act and CBCT Notification No. 18/2022 dated 29.03.2022. 4 In law and in the facts and circumstances of the case, Ld. CIT(A) has grossly erred in not adjudicating ground relating to the validity of reassessment proceeding despite the fact that Notice under section 148 of the Act dated 31.08.2022 is void and bad in law as it was issued without DIN. 5 In law and in the facts and circumstances of the case, Ld. CIT(A) has grossly erred in upholding addition on account of alleged unexplained money amounting to Rs. 9,00,000/- u/s 68 of the Act, when no such addition is called for. 6. The appellant craves leave to add to alter, amend and/or withdraw any ground or grounds of appeal either before or during the course of hearing of the appeal. 3. The details relating to the issuance of notice under section 148 of the Income Tax Act are summarized as under: Sr. Particulars Date 1 Deemed date of show cause notice u/s. 148A9b) (date of issuance of original notice u/s. 148) 30.06.2021 2. Due date of issuance of notice 30.06.2021 3. No. of days between date of original 148 and due date of issuance of noice u/s.148 (deemed to be stayed, thus added in the total limitation) 1 Day 4. Date of filing of response to notice 27.07.2022 Printed from counselvise.com ITA No. 1586/Ahd/2025 Asst. Year : 2017-18 - 3– u/s.148A(b) 5. Date of limitation for issuing notice u/s.148 27.07.2022 + 7 days = 03.08.2022 It is evident from the above that the impugned notice under section 148 of the Act was issued on 31.08.2022, which is beyond the limitation period as prescribed under the law. Therefore, the notice is time-barred and invalid 4. In view of the above facts and circumstances of the case and respectfully following the decision of the Hon’ble Supreme Court in the case of Union of India v. Rajeev Bansal [2024] 167 taxmann.com 70 (SC) dated 03.10.2024, we hold that the notice issued under section 148 of the Act on 31.08.2022 is time-barred and, therefore, invalid in the eyes of law. Consequently, the reassessment proceedings initiated on the basis of such notice are void ab initio and deserve to be quashed. 5. In the result, the appeal of the assessee is allowed. The order is pronounced in the open Court on 14.11.2025. S /- Sd/- Sd/- (SIDDHARTHA NAUTIYAL) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT (True Copy) Ahmedabad; Dated 14.11.2025 MV Printed from counselvise.com ITA No. 1586/Ahd/2025 Asst. Year : 2017-18 - 4– आदेश की Ůितिलिप अŤेिषत/Copy of the Order forwarded to : 1. अपीलाथŎ / The Appellant 2. ŮȑथŎ / The Respondent. 3. संबंिधत आयकर आयुƅ / Concerned CIT 4. आयकर आयुƅ(अपील) / The CIT(A)- 5. िवभागीय Ůितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाडŊ फाईल / Guard file. आदेशानुसार/ BY ORDER, True Copy सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad Printed from counselvise.com "