ROY BANERJEE DEVELOPMENT PVT. LTD.,KOLKATA V. I.T.O., WARD - 1(1), KOLKATA

ITA 1584/KOL/2025

AI Insights

The case involves Roy Banerjee Development Private Limited, which appealed against the assessment order for the assessment year 2015-16, claiming it was time-barred. The Income Tax Officer (ITO) had reopened the case under section 147 of the Income Tax Act after receiving information about alleged accommodation entries. The reassessment notice was issued under the new regime following the Supreme Court's decision in Ashish Agarwal's case, which led to procedural changes in issuing such notices. The Income Tax Appellate Tribunal (ITAT) in Kolkata, referencing a similar case (M/s Kothari Metals Ltd. Vs. DCIT), found the appeal to be barred by limitation and thus allowed the assessee's appeal, quashing the reassessment notice and the subsequent assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 822822 (ITAT-KOLKATA)
• Duration Of Justice: 5 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-12-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2015-2016
• Appeal Filed On: 18-07-2025
• Other Referred Cases: Union of India and other Vs. Rajeev Bansal [2024] 469 ITR 46 (SC), Union of India & Ors. Vs. Ashish Agarwal (2022 SCC Online SC 543), M/s Kothari Metals Ltd. Vs. DCIT in ITA No. 2138/Kol/2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 147; 148

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH,KOLKATA SHRI RAJESH KUMAR, ACCOUNTANT MEMBER SHRI PRADIP KUMAR CHOUBEY, JUDICIAL MEMBER I.T.A. No.1584/Kol/2025 (Assessment Year 2015-16) Roy Banerjee Development Private Limited, 1B, Malanga Lane, Kolkata - 700012 [PAN: AADCR3483N] ..……..…...……………....Appellant vs. ITO Ward 1(1), Kolkata, Aayakar Bhawan, P-7, Chowringhee Square, Kolkata – 700069 ................................ Respondent Appearances by: Assessee represented by : Soumitra Choudhury, Advocate Department represented by : S.B. Chakraborthy, Addl. CIT, Sr. DR Date of concluding the hearing : 01.12.2025 Date of pronouncing the order : 23.12.2025 O R D E R Per Rajesh Kumar, AM The present appeal filed by the revenue arises from order dated 31.07.2024passed u/s 250 of the Income Tax Act, 1961 (hereafter “the Act”) by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereafter “the Ld. CIT(A)]. 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 de- cision 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 assessee filed the return of income on 08.01.2016, declaring total loss at ₹89,590/-. The case of the assessee Printed from counselvise.com 2 ITA No.1584/Kol/2025 Roy Banerjee Development Pvt. Ltd. was reopened u/s 147 of the Act after the ld. AO received information that assessee received accommodation entry amounting to ₹52,50,672/-. The notice u/s 148 of the Act was issued on 26.07.2022 after following the procedure laid down by issuing show cause under Section 148A(b) but there was no compliance but subsequently, after the decision of Hon'ble Apex court in the civil appeal No. 3005/2022 in case of Union of India &Ors. Vs. Ashish Agarwal (2022 SCC Online SC 543) vide order dated 04.05.2022, in pursuance of subsequent instruction No.1/2022 dated 11/05/2022 by CBDT, JAO initiated the proceedings u/s 148 of the Income-tax Act, 1961 (the Act) by issuing notice u/s 148 of the Act on 26.07.2022 under the new regime. Accordingly, the assessment was framed which was also affirmed by ld CIT(A). 4. After hearing the rival contentions and perusing the materials avail- able on record, we find that the appeal is barred by limitation as has been held by the Hon'ble Apex court in the case of Rajeev Bansal (supra). The co-ordinate Bench in the case of M/s Kothari Metals Ltd. Vs. DCIT in ITA No. 2138/Kol/2024 vide order dated 19th March, 2025, has decided the appeal having similar issue in favour of the assessee. Respectfully, follow- ing the same, we allow the appeal of the assessee. The notice u/s 148 of the Act and the consequent assessment framed are quashed as barred by limitation. The appeal of the assessee is allowed. 5. In result, appeal of the assessee is allowed. Order pronounced on 23.12.2025 Sd/- Sd/- (Rajesh Kumar) (Pradip Kumar Choubey) Accountant Member Judicial Member Dated: 23.12.2025 AK,Sr. P.S. Printed from counselvise.com 3 ITA No.1584/Kol/2025 Roy Banerjee Development Pvt. Ltd. Copy of the order forwarded to: 1. Appellant 2. Respondent 3. Pr. CIT 4. CIT(A) 5. CIT(DR) //True copy// By order Assistant Registrar, Kolkata Benches Printed from counselvise.com "