KRISHNA INFRAHOUSING PRIVATE LIMITED,AGRA V. INCOME TAX OFFICER, WARD-2(1)(1), AGRA, AGRA

ITA 512/AGR/2024

AI Insights

The case involves M/s Krishna Infrahousing P. Ltd., the appellant, contesting an assessment order from the Income Tax Officer under sections 147 and 144B of the Income Tax Act, 1961, for the Assessment Year 2013-14. The primary issue was the legality of the reassessment proceedings and the subsequent addition of Rs. 60 Lacs under section 69A of the Act. The appellant challenged the reassessment on the grounds of procedural improprieties and limitation periods as defined under the relevant tax laws. The Tribunal's decision was heavily influenced by precedents set by the Hon'ble Delhi High Court and the Supreme Court regarding the application of TOLA, which affected the limitation periods for reassessment notices.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 25782 (ITAT-AGRA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Other Referred Cases: Pratishtha Garg vs. ACIT, UOI vs. Rajeev Bansal
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHAILENDRA SHRIVASTAVA LD.
• Assessee Lawyers: SAHIB P. SATSANGI LD
• Keywords: Set aside; Reassessment proceedings; Period of limitation
• Section: 147; 148

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AGRA BEFORE HON’BLE SHRI SATBEER SINGH GODARA, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं. / ITA No.512/Agr/2024 (िनधाŊरणवषŊ / Assessment Year: 2013-14) M/s Krishna Infrahousing P. Ltd. 31, Hardeep Enclave, Sikandra Agra-282007 बनाम/ Vs. ITO-2(1)(1) Agra ̾थायीलेखासं./जीआइआरसं./PAN/GIR No. AAFCK-0408-E (अपीलाथŎ/Appellant) : (ŮȑथŎ / Respondent) अपीलाथŎकीओरसे/ Appellant by : Shri Sahib P. Satsangi (CA) – Ld. AR ŮȑथŎकीओरसे/Respondent by : Shri Shailendra Shrivastava – Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 19-02-2025 घोषणाकीतारीख /Date of Pronouncement : 28-03-2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2013-14 arises out of an order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 25-09- 2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 147 r.w.s. 144B of the Act on 10-05-2023. The sole grievance of the assessee is confirmation of addition of Rs.60 Lacs u/s 69A. Having heard rival submissions and upon perusal of case records, the appeal is disposed-off as under. 2. The Ld. AR, at the outset, raised a pertinent legal issue assailing legality of reassessment proceedings. It has been stated that this year is 2 covered by the decision of Hon’ble Delhi High Court in the case of Pratishtha Garg vs. ACIT (171 Taxmann.com 264) which has been rendered by considering the decision of Hon’ble Supreme Court in the case of UOI vs. Rajeev Bansal (167 Taxmann.com 70). In this decision it was held by Hon’ble Court as under: - 3. It is relevant to note paragraph 19 (e) and (f) of the decision of the Supreme Court in Union of India and Others v. Rajeev Bansal; 2024 SCC OnLine SC 2693. The same are set out as under: \"(e) The Finance Act, 2021 (2021) ((2021) 432 ITR (Stat) 52) substituted the fold regime for reassessment with a new regime. The first proviso to section 149 does not expressly bar the application of Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020, Section 3 of the Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 applies to the entire Income-tax Act, including sections 149 and 151 of the new regime. Once the first proviso to section 149(1)(b) is read with Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020, then all the notices issued between April 1, 2021 and June 30, 2021 pertaining to the assessment years 2013-2014, 2014-2015, 2015-2016, 2016-2017, and 2017-2018 will be within the period of limitation as explained in the tabulation below: Assessment Year Within 3 Years Expiry of limitation read with TOLA for (2) Within Six Years Expiry of limitation read with TOLA for (4) (1) (2) (3) (4) (5) 2013-14 31.03.2017 TOLA not applicable 31.03.2020 30.06.2021 2014-15 31.03.2018 TOLA not applicable 31.03.2021 30.06.2021 2015-16 31.03.2019 TOLA not applicable 31.03.2022 TOLA not applicable 2016-17 31.03.2020 TOLA not applicable 31.03.2023 TOLA not applicable 2017-18 31.03.2021 TOLA not applicable 31.03.2024 TOLA not applicable (f) The Revenue concedes that for the assessment year 2015-2016, all notices issued on or after April 1, 2021 will have to be dropped as they will not fall for completion during the period prescribed under the Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020.\" 4. In view of the aforesaid, the impugned order dated 19.07.2022 issued under Section 148(A)(d) of the Income Tax Act,1961 (hereafter the Act) as well as the notice dated 19.07.2022 issued under Section 148 of the Act in respect of AY 2015-16 are liable to be set aside. It is so directed. 5. The petition is allowed in the aforesaid terms. 6. Pending application also stands disposed of We find that in the present case pertaining to AY 2013-14 and an order u/s 148A(d) was completed on 29-07-2022. Finally, notice u/s 148 has 3 been issued on 31-07-2022 which culminated into assessment order on 10-05-2023. As tabulated above, the period of expiry of limitation for TOLA for AY 2013-14 would be 30-06-2021. Clearly, the notice u/s 148 is barred by limitation. Respectfully following the above decision, we quash assessment order and allow the appeal on this legal ground only. Delving into other grounds has been rendered merely academic in nature. 3. The appeal stand allowed in terms of our above order. Order pronounced u/r 34(4) of Income Tax (Appellate Tribunal) Rules, 1963. Sd/- Sd/- (SATBEER SINGH GODARA) (MANOJ KUMAR AGGARWAL) Ɋाियक सद˟ /JUDICIAL MEMBER लेखा सद˟ / ACCOUNTANT MEMBER Dated: 28-03-2025 आदेश की Ůितिलिप अŤेिषत / Copy of the Order forwarded to : 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF ASSISTANT REGISTRAR ITAT AGRA "