K VIPUL & CO ,SURAT V. ITO, WARD 1(2)(6), SURAT

ITA 758/SRT/2025

AI Insights

The case involves K Vipul & Co., the appellant, contesting an assessment order issued by the Income Tax Officer, Ward-1(2)(6), Surat, for the Assessment Year 2016-17. The primary contention was the timeliness of the notice issued under Section 148 of the Income-tax Act, 1961. The Tribunal examined the timeline of events and found that the notice was issued beyond the permissible period, as stipulated by the Act and interpreted in light of the Supreme Court's decision in Union of India v. Rajeev Bansal. This led to the conclusion that the notice was time-barred, rendering the subsequent assessment proceedings void.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 832186 (ITAT-SURAT)
• Duration Of Justice: 6 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-01-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 15-07-2025
• Other Referred Cases: Union of India v. Rajeev Bansal-167 taxmann.com 70
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AJAY UKE
• Assessee Lawyers: SAPNESH SHETH
• Keywords: Period of limitation
• Section: 148

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL SURAT BENCH, SURAT BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT Ms SUCHITRA KAMBLE, JUDICIAL MEMBER ITA No.758/Srt/2025 (Assessment Year: 2016-17) K Vipul & Co., Flat No.1001, 10th Floor Anand Villa, Deepa Complex Adajan, Surat-395009. [PAN : AANFK4801A] Vs. Income Tax Officer, Ward-1(2)(6), Surat. (Appellant) .. (Respondent) Appellant by : Shri Sapnesh Sheth, AR Respondent by: Shri Ajay Uke, Sr. DR Date of Hearing 19.01.2026 Date of Pronouncement 21.01.2026 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:- This appeal has been filed by the Assessee against the order dated 19.06.2025 passed by the Ld. Commissioner of Income-Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi (“the CIT(A) in short), under Section 250 of the Income-tax Act, 1961 (“the Act”), relating to the Assessment Year 2016-17. 2. The chronological facts required for adjudication of the case are as under: 1. Because of the legal fiction, the deemed show cause notice will also come in to effect from 30.06.2021 2. After accounting for the exclusions, the Assessing Officer will have 1 day between 30.06.2001 and 30.08.2021 to issue notice u/s. 148 in new Regime. However as per the decision of Supreme Court in case of Union of India v. Rajeev Bansal-167 taxmann.com 70. where the period of limitation available 7 days Printed from counselvise.com ITA No. 758/Srt/2025 Asst. Year : 2016-17 - 2– to the A.O., for passing an order cs 148A(d) is less than seven days, such remaining period shall be extended to seven days) 3. Time starts ticking for the Assessing Officer after receiving the response of the assessee which is on 06.06.2022 4. The Assessing Officer will have 7 days from 06.06.2022 to issue notice u 148 of 11 Act 1961 13.06.2022 5. Notice u/s. 148 of the Act is issued on 29.07.2022 6. Issue of notice u/s.148 of the Act is delayed by 46 days 7 Status of Notice u/s.148 of the act Time barred 8 Status of Order u/s.148A(d) of the Act Time barred 3. Keeping in view the above undisputed facts, the notice issued by the Assessing Officer is time barred by limitation hence the assessment proceedings are treated as void ab initio. In the result, the appeal of the assessee is allowed. The order is pronounced in the open Court on 21.01.2026. Sd/- Sd/- (SUCHITRA KAMBLE) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT Surat; Dated 21.01.2026 **mv 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 , /DR,ITAT, Surat, 6. गाडŊ फाईल / Guard file. आदेशानुसार/ BY ORDER, TRUE COPY सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण ITAT, Surat25………. 1. Date on which the approved draft Printed from counselvise.com "