M/S SAGAR TIE UP PRIVATE LIMITED,NEW DELHI V. ITO, WARD 1(1), KOLKATA, KOLKATA

ITA 1507/KOL/2025

AI Insights

The case involves M/s Sagar Tie Up Private Limited, which appealed against the order of the National Faceless Appeal Centre, Delhi, concerning the assessment year 2015-16. The primary issue was the legality of the notice issued under section 148 of the Income Tax Act, 1961, for reopening the assessment, which the assessee argued was time-barred. The Tribunal considered various judgments, including the Supreme Court's decision in the case of Union of India & Ors. Vs. Ashish Agarwal, which influenced the interpretation of the limitation period for reopening assessments under TOLA. The Tribunal concluded that the notice was indeed time-barred, leading to the quashing of the assessment.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 842165 (ITAT-KOLKATA)
• Duration Of Justice: 7 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2015-2016
• Appeal Filed On: 12-07-2025
• Other Referred Cases: Union of India and other Vs. Rajeev Bansal, Union of India & Ors. Vs. Ashish Agarwal, 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: S.B. CHAKRABORTHY
• Assessee Lawyers: SIDDARTH AGARWAL
• Keywords: Business income; Revised return; Period of limitation; Reopening of assessment; Competent authority
• Section: 147; 148; 144; 139(5)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, KOLKATA BEFORE SHRI RAJESH KUMAR, AM AND SHRIPRADIP KUMAR CHOUBEY, JM ITA No.1507/KOL/2025 (Assessment Year: 2015-16) M/s Sagar Tie Up Private Limited 37, Rani Jhansi Road, 1 st Floor, Jhandewalan, New Delhi-110055 Vs. ITO, Ward 1(1), Kolkata Kolkata-700069, West Bengal (Appellant) (Respondent) PAN No. AAJCS4983J Assessee by : Shri Siddarth Agarwal, AR Revenue by : Shri S.B. Chakraborthy, DR Date of hearing: 19.01.2026 Date of pronouncement: 26.02.2026 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 18.06.2025 for the AY 2015-16. 2. 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 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. 3. The facts in brief are that the case of the assessee filed its return of income u/s 139(1) of the Act on 29.09.2015, declaring total income at ₹1,62,550/-. Further, the assessee has filed its revised Return of Printed from counselvise.com Page | 2 ITA No. 1507/KOL/2025 M/s Sagar Tie Up Private Limited; A.Y. 2015-16 Income u/s 139(5) of the Act on 28.03.2016 declaring total loss at Rs.41,489/-.The case of the assessee was reopened upon credible information received under Project Falcon from DGIT (Inv.) Mumbai through ITBA, the above-mentioned assessee company had made non-genuine loss under Project Falcon by way of coordinated and pre meditated trading on stock exchange platform by engaging in reversal trades in liquid stock options (stock derivative and currency derivative) for Rs.85,05,300/- during the AY 2015-16.This case was reopened after passing an order u/s. 148A(d) of the I. T. Act, 1961 dated 28.07.2022 and subsequently notice u/s. 148 of the Act was issued dated 29.07.2021 and duly served upon the assessee. Further, a fresh notice u/s 148 of the I.T. Act was issued to the assessee. Accordingly, proceedings u/s 147 of the Act were initiated vide notice issued u/s 148 of the Act on 24.06.2021. 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 read with section 144B of the Act by making an addition of ₹85,05,300/- on account of Business Income. 4. In the appellate proceedings, the ld. CIT (A) deleted the appeal of the assessee by observing and holding as under:- “In these grounds the appellant has challenged the assumption of jurisdiction u/s 148 of the Income Tax Act. The appellant has relied upon various judgements of various courts in its favour. The AO has issued the notice u/s 148 of the Income Tax Act in pursuance of the order of the Hon. Apex Court in the case of Union of India &Ors Vs Ashish Agarwal (Civil Appeal No.3005/2002) read with instruction No. 01/2022 dated 11.05.2022 issued by CBDT. Hence, the AO has followed the decision of Hon. SC and taken prior approval from the competent authority. Hence these grounds are dismissed.” Printed from counselvise.com Page | 3 ITA No. 1507/KOL/2025 M/s Sagar Tie Up Private Limited; A.Y. 2015-16 5. 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 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. 6. 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 Printed from counselvise.com Page | 4 ITA No. 1507/KOL/2025 M/s Sagar Tie Up Private Limited; A.Y. 2015-16 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 limitation and is accordingly quashed. The assessment framed is also quashed. 7. In the result, the appeal of the assessee is allowed. Order pronounced in the open court on 26.02.2026. Sd/- Sd/- (PRADIP KUMAR CHOUBEY) (RAJESH KUMAR) (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) Kolkata, Dated: 26.02.2026 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 "