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Judgment
PER YOGESH KUMAR, U.S. JM:
The present appeal is filed by the Assessee against the order of Ld. Commissioner of Income Tax (Appeals/ National Faceless Appeal Centre (‘Ld. CIT(A)/NFAC’ for short), New Delhi dated 07/11/2025 for the Assessment Year 2014-15.
Brief facts of the case are that, an assessment order came to be passed u/s 147 read with Section 144B of the Income Tax Act, 1961 (‘Act’ for short) vide order dated 26/05/2023 by making certain additions. Aggrieved by the assessment order dated 26/05/2023, Assessee preferred an Appeal before the Ld. CIT(A). The Ld. CIT(A) vide order dated 07/11/2025, dismissed the Appeal filed by the Assessee by confirming the additions made by the A.O. Aggrieved by the order of the Ld. CIT(A) dated 07/11/2025, the Assessee preferred the present Appeal.
The Ld. Counsel for the Assessee addressing on Ground No. 1, vehemently submitted that the notice issued u/s 148 of the Act dated 25/07/2022 was barred by limitation, as per the ratio laid down by the Hon'ble Supreme Court of India in the case of Union of India Vs. Rajveev Bansal Civil Appeal No. 3005/2022 dated 04/05/2022.
Per contra, the Ld. Departmental Representative submitted that Ground No. 1 of the Assessee regarding the contention that notice issued u/s 148 of the Act is barred by limitation does not have merit. Further submitted that, issuing of the notice and the initiation of re-assessment proceedings are well within the limitation, thus relying on the order of the Lower Authorities, sought for dismissal of the Appeal.
We have heard both the parties and perused the material available on record. In the present case, Notice issued u/s 148 of the Act dated 11/06/2021 was treated as show cause notice u/s 148A (b) of the Act as per the amended provisions of Act w.e.f 01/04/2021. Subsequently, following the Ashish Agarwal Judgment (supra) another notice was issued u/s 148A(b) of the Act on 22/05/2022 by giving the time to the Assessee to submit the response by on or before 07/06/2022. In response to the said notice the appellant had furnished her submissions on 10/06/2022. Thereafter the Ld. Assessing Officer passed the order u/s 148A(d) of the Act dated 25/07/2022 and issued the notice u/s 148 of the Act dated 25/07/2022.
As per the ratio laid down by the Hon'ble Supreme Court of India in the case of Rajeev Bansal (supra), the Revenue only had the ‘surviving period’ of 19 days calculated from the date of the deemed notice i.e. 11/06/2021 to 30/06/2021 being the last date to issue the notice. Since the clock restarted on 10/06/2022 i.e. the date on which of reply is submitted by the appellant, the last date for issuing the 148 of the Act notice would be 29/06/2022. But the notice u/s 148 of the Act was actually issued on 25/07/2022, which exceeded the surviving period and the notice dated 25/07/2022 was delayed by 26 days and the same is barred by limitation as per the ratio laid down by the Hon'ble Supreme Court in the case of Rajiv Bansal (supra). Consequently, the re-assessment proceedings initiated thereupon is hereby quashed.
In the result, Appeal of the Assessee is allowed.