PUNEET SAGGAR,LUDHIANA, PUNJAB V. INCOME TAX OFFICER, WARD 6(1), LUDHIANA, PUNJAB, LUDHIANA, PUNJAB.

ITA 505/CHANDI/2024

AI Insights

The case involves Shri Puneet Saggar, who appealed against the order of the Commissioner of Income Tax (Appeals) for the assessment year 2015-16. The primary contention was the legality of the re-opening of the assessment by the Income Tax Officer (ITO) through a notice under Section 148 read with Section 148A(d) of the Income Tax Act. The assessee's counsel argued that the re-opening was not permissible as per the Supreme Court's ruling in Union of India Vs Rajiv Bansal, which affected the procedural validity of such notices post-31.03.2021 for the specified assessment year. The Tribunal, after considering the arguments and the Supreme Court's precedent, ruled in favor of the assessee, leading to the quashing of the re-assessment order.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 46810 (ITAT-CHANDIGARH)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2015-2016
• Other Referred Cases: Union of India Vs Rajiv Bansal
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RANJIT KAUR
• Assessee Lawyers: B.M. MONGA
• Keywords: Reopening of assessment
• Section: 148

Judgement Text

"आयकर अपील य अ धकरण,च\u0010डीगढ़ \u0014यायपीठ, च\u0010डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, ‘B’ CHANDIGARH BEFORE SHRI RAJPAL YADAV, VICE PRESIDENT AND SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No. 505/CHD/2024 नधा\u0011रण वष\u0011 / Assessment Year: 2015-16 Shri Puneet Saggar, Shop No. 2, Miverva Complex, Near Clock Tower, Ludhiana. Vs The ITO, Ward 6(1), Ludhiana. \u0016थायी लेखा सं./PAN NO: AOYPS1978R अपीलाथ\u001a/Appellant \u001b यथ\u001a/Respondent Assessee by : Shri B.M.Monga, Advocate and Shri Rohit Kaura, Advocate Revenue by : Dr. Ranjit Kaur, Addl. CIT Sr.DR Date of Hearing : 07.04.2025 Date of Pronouncement : 08.04.2025 HYBRID HEARING O R D E R PER RAJPAL YADAV, VP The assessee is in appeal against the order of ld. Commissioner of Income Tax (Appeals) [in short ‘the CIT (A)’] dated 21.03.2024 passed in assessment year 2015-16. 2. The assessee has taken five grounds of appeal out of which Ground No. 1 is a general ground which does not call for recording of any specific finding. In Ground No. 3 assessee has challenged re-opening of assessment by ITA No.505/CHD/2024 A.Y. 2015-16 2 issuance of a notice under Section 148 read with Section 148A(d) of the Income Tax Act. 3. The ld. Counsel for the assessee, at the very outset submitted that issue in dispute is squarely covered in favour of the assessee by the judgement of Hon'ble Supreme Court in the case of Union of India Vs Rajiv Bansal reported in 167 taxmann.com 70. The ld. Counsel for the assessee further submitted that though appeal of the assessee was dismissed for want of prosecution by ld. CIT(A) but assessment year involved herein is 2015-16 and in this year, re-opening ought to have not been made if notice was issued after 31.03.2021. 4. On the other hand, ld. DR was unable to controvert the contention of ld. Counsel for the assessee. 5. We have duly considered the rival contentions and gone through the record carefully. The assessee has filed its return of income electronically on 30.09.2015 declaring total income at Rs.9,73,710/-. The ld. AO sought to reopen the assessment by issuance of a notice under Section 148 of the Income Tax Act on 28.07.2022. The ld. Counsel for the assessee has pointed out that Hon'ble Supreme Court has ITA No.505/CHD/2024 A.Y. 2015-16 3 considered the issue whether assessment for assessment year 2015-16 could be reopened with help of TOLA after 01.04.2021. Hon'ble Supreme Court in paragraph 19 at clause (f) has observed that “Revenue has conceded that for assessment year 2015-16, all notices issued on or after 01.04.2021 will have to be dropped as they will not form for completion during the period prescribed under TOLA”. 6. In view of the judgement of Hon'ble Supreme Court and the specific stand of the Revenue at Sr.No. (f) of the finding recorded in paragraph No. 19 of the judgement, the re- opening in the present case is not sustainable. The simple reason is that notice under Section 148 was issued on 28.07.2022 and it is time barred. Accordingly, we allow this appeal of the assessee and quash the re-assessment order. 7. In the result, appeal of the assessee is allowed. Order pronounced on 08.04.2025. Sd/- Sd/- (MANOJ KUMAR AGGARWAL) (RAJPAL YADAV) ACCOUNTANT MEMBER VICE PRESIDENT “Poonam” ITA No.505/CHD/2024 A.Y. 2015-16 4 आदेश क\u0002 \u0003ितिलिप अ ेिषत/ Copy of the order forwarded to : 1. अपीलाथ\u000f/ The Appellant 2. \u0003\u0010यथ\u000f/ The Respondent 3. आयकर आयु\u0014/ CIT 4. िवभागीय \u0003ितिनिध, आयकर अपीलीय आिधकरण, च\u0018डीगढ़/ DR, ITAT, CHANDIGARH 5. गाड फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar "