Rohit Mittal vs Income Tax Officer, Ward-36(1)

PER MADHUMITA ROY, JM:

The instant appeal filed by the assessee is directed against the order dated 04.11.2025 passed by the Ld. Commissioner of Income Tax (Appeals), NFAC, Delhi [hereinafter referred to as the Ld. CIT(A)] under Section 250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) arising out of the Assessment Order dated 23.05.2023 passed by the Assessment Unit, Income Tax Department (hereinafter referred to as ‘the ld. AO’) under Sections 147 r.w.s. 144B of the Act for Assessment Year 2015-16.

The assessee has challenged the assessment under Section 148 of the Act as barred by limitation, without jurisdiction in terms of the order passed by the Hon’ble Supreme Court in the case of Union of India vs. Rajeev Bansal, 2024 INSC 754.

We have heard the respective parties and perused the relevant material available on the record. In this matter, the original notice under Section 148 of the Act was issued on 25^th June, 2021 and the TOLA period ending date was 30^th June, 2021. The surviving period including the day of issuance of notice as per the fourth proviso to Section 149(1) of the Act seven days is to be given if the period is less than seven days. The show cause notice, in view of the order passed in the case of Rajeev Bansal (supra) under Section 148A of the Act under the new regime was issued on 26^th May, 2022 asking reply from the assessee which was duly filed on 7^th June, 2022 and valid period for issuance of notice under Section 148 of the Act, therefore, is the seven days which ends on 14^th June, 2022. In the case in hand, the notice under Section 148 was, admittedly, issued on 28^th July, 2022. Relevant to mention that so far as the assessment year 2015-16 is concerned, TOLA is not applicable and the Revenue concedes that for AY 2015-16 all notices issued on or after 1^st April, 2021 will have to be dropped as they will not fall within the concession period prescribed under TOLA. The Hon’ble High Court in the case of Rajeev Kumar Khandelwal in Writ Petition (C) No.12506/2022 noted the concession given by the Ld. ASG in the case of Union of India vs. Rajeev Bansal as narrated hereinabove.

Having regard to this particular aspect of the matter, the notice under Section 148 of the Act since been issued on 28^th July, 2022, i.e., after 1^st April, 2021, the same is nonest in the eyes of law and, therefore, liable to be quashed. Even otherwise the notice under Section 148 of the Act dated 28^th July, 2022 is found to be beyond the surviving period of seven days on the date of assessee’s reply on 7^th June, 2022, the notice is found to be barred by limitation and, therefore, not sustainable in the eyes of law and the same is, thus, quashed.

In the result, the appeal filed by the assessee is allowed.