RAJANI SAHU,GWALIOR V. INCOME-TAX OFFICER, ASHOK NAGAR, GWALIOR

ITA 420/AGR/2024

AI Insights

The case involves Smt. Rajani Sahu, the appellant, contesting an assessment order passed by the Income Tax Officer, Ashok Nagar, Gwalior, which added deemed income under section 56(2)(vii)(b) of the Income Tax Act for the Assessment Year 2015-16. The appellant's challenge was initially upheld by the Commissioner of Income Tax (Appeals), NFAC, Delhi, but was later contested in the Income Tax Appellate Tribunal, Agra. The primary legal issue raised was the validity of the reassessment proceedings under the new regime established by the Finance Act, 2021, and its interaction with the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020. The Tribunal, referencing decisions from the Hon'ble Delhi High Court and the Supreme Court, found that the reassessment notice was issued beyond the permissible period, leading to the quashing of the assessment order.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 126496 (ITAT-AGRA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2015-2016
• Other Referred Cases: UOI vs. Rajeev Bansal (167 Taxmann.com 70), IBIBO Group Private Ltd. (WP(C) No.17639/2022)
• Laws Referred To: Income-tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHAILENDER SHRIVASTAVA LD.
• Assessee Lawyers: DEEPENDRA MOHAN; LD
• Keywords: Reassessment proceedings; Period of limitation; Deemed to accrue or arise in india; Commissioner; Commissioner of Income Tax; Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020
• Section: 147; 148; 56(2)(vii)(b)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “DB” BENCH, AGRA BEFORE HON’BLE SHRI SATBEER SINGH GODARA, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं. / ITA No. 420/Agr/2024 (िनधा \u0010रणवष\u0010 / Assessment Year:2015-16) Smt. Rajani Sahu Karera, Near Kali Mai Mandir, Shivpuri Road Karera, Shivpuri (MP). बनाम/ Vs. Income-tax Officer, Ashok Nagar, Gwalior. \u0002थायीलेखासं./जीआइआरसं./PAN/GIR No. EHPPS-3090-N (अपीलाथ /Appellant) : ( थ / Respondent) अपीलाथ कीओरसे/ Appellant by : Sh. Deependra Mohan, CA - Ld. AR थ कीओरसे/Respondent by : Sh. Shailender Shrivastava – Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 21-02-2025 घोषणाकीतारीख /Date of Pronouncement : 22.04.2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2015-16 arises out of an order passed by learned Commissioner of Income Tax (Appeals), NFAC, Delhi [CIT(A)] on 21-05-2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 147 r.w.s. 144 of the Act on 27-04-2023. In the assessment order, Ld. AO made addition of deemed income u/s 56(2)(vii)(b) for Rs.48.90 Lacs. The Ld. CIT(A) confirmed the same against which the assessee is in further appeal before us. 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 covered by the decision of Hon’ble Delhi High Court in the case of IBIBO 2 Group Private Ltd. (WP(C) No.17639/2022 dated 13-12-2024) 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 Apex Court 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.\" Considering the same, Hon’ble Court has allowed the writ petition. This position could not be controverted by revenue. We find that in the present case pertaining to AY 2015-16, an order u/s 148A(d) was passed on 18-07-2022. Finally, notice u/s 148 has been issued on 23-07-2022 which culminated into assessment order on 27-04-2023. As tabulated above, the period of expiry of limitation for AY 2015-16 would be 31-03- 2022. Clearly, the notice u/s 148 is barred by limitation. Respectfully following the above decision, we quash the assessment order and allow 3 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) 5ा ियक सद6 /JUDICIAL MEMBER लेखा सद6 / ACCOUNTANT MEMBER Dated: 22.04.2025 आदेश की 8ितिलिप अ:ेिषत / Copy of the Order forwarded to : 1. अपीलाथ /Appellant 2. थ /Respondent 3. आयकरआयु2/CIT 4. िवभागीय ितिनिध/DR 5. गाड8फाईल/GF ASSISTANT REGISTRAR ITAT AGRA "