WOODLAND RETAILS PVT. LTD.,KOLKATA V. INCOME TAX OFFICER, WARD -9(1), , KOLKATA

ITA 335/KOL/2025

AI Insights

The case involves Woodland Retails Private Limited, which appealed against the order of the National Faceless Appeal Centre, Delhi, concerning the reopening of its assessment for the Assessment Year 2015-16. The primary contention was the validity of the notice issued under section 148 of the Income Tax Act, which was argued to be barred by limitation based on recent judicial precedents. The tribunal considered various judgments, including those from the Supreme Court and Delhi High Court, which supported the assessee's position that the reopening was not permissible for the specified assessment year under the extended period provided by TOLA.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 783739 (ITAT-KOLKATA)
• Duration Of Justice: 8 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-11-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2015-2016
• Appeal Filed On: 17-02-2025
• Other Referred Cases: Union of India and other Vs. Rajeev Bansal, Union of India VS. Asish Agarwal, Ibibo Group Pvt. Ltd. Vs. ACIT, Orbit Financial Capital, Coplama Products Pvt. Ltd., Rajasthan High Court in WP No. 3667 of 2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S.B. CHAKRABORTHY
• Assessee Lawyers: A. K. TIBREWAL; SAURAV GUPTA; ARS
• Keywords: Period of limitation; Reopening of assessment
• Section: 147; 148

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, KOLKATA BEFORE SHRI DUVVURU RL REDDY, VP AND SHRI RAJESH KUMAR, AM ITA No.335/KOL/2025 (Assessment Year: 2015-16) Woodland Retails Private Limited 75, Metcalfe Street, 1 st Floor, Kolkata-700013, West Bengal Vs. Income Tax Officer, Ward 9(1) Aaykar Bhawan Poorva, P-7, Chowringhee Square, Kolkata-700069, West Bengal (Appellant) (Respondent) PAN No. AABC21644A Assessee by : Shri A.K. Tibrewal, & Shri Saurav Gupta, ARs Revenue by : Shri S.B. Chakraborthy, DR Date of hearing: 13.10.2025 Date of pronouncement: 04.11.2025 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 09.12.2024 for the AY 2015-16. 02. At the outset, the ld. Counsel for the assessee submitted that the notice issued u/s 148 of the Act on 23.06.2021 is barred by limitation in consonance with ratio laid down by 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 (SC). Printed from counselvise.com Page | 2 ITA No.335/KOL/2025 Woodland Retails Private Limited; A.Y. 2015-16 03. The facts in brief are that the assessee is a private limited company and filed its return of income for A.Y. 2015-16, declaring total income at ₹55,850/-. Thereafter, the case of the assessee was reopened u/s 147 of the Act by issuing notice u/s 148 on 23.06.2021 on the basis of some credible information available on record. Thereafter the notice u/s 148A(b) was issued the decision of the Hon'ble Supreme Court in case of Union of India VS. Asish Agarwal 2022 SCC on line SC 543 in which the Hon'ble Supreme Court held that the notice issued u/s 148 of the Act shall be deemed to be show cause notice in terms of Section 148A(b) of the Act. Thereafter, order u/s 148A(d) was passed on 29.07.2022 and notice u/s 148 of the Act was issued on 23.06.2021. 04. 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 Printed from counselvise.com Page | 3 ITA No.335/KOL/2025 Woodland Retails Private Limited; A.Y. 2015-16 has taken the similar view. The Ld. AR, therefore, prayed that the same may kindly be quashed. 05. 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 23.06.2021 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 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. 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. 06. In the result, the appeal of the assessee is allowed. Order pronounced in the open court on 04.11.2025. Sd/- Sd/- (DUVVURU RL REDDY) (RAJESH KUMAR) (VICE PRESIDENT) (ACCOUNTANT MEMBER) Kolkata, Dated: 04.11.2025 Sudip Sarkar, Sr.PS Printed from counselvise.com Page | 4 ITA No.335/KOL/2025 Woodland Retails Private Limited; A.Y. 2015-16 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 "