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Judgment
PER AMITABH SHUKLA, AM
This appeal filed by the assessee is directed against the order of Ld. Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre, New Delhi, dated 17.12.2025 arising out of assessment order dated 27.05.2023 passed u/s 143(3) r.w.s. 147 of the Act for Assessment Year 2016-17. The word ‘Act’ herein this order would mean Income Tax Act, 1961.
At the outset, ld. Counsel for the assessee invited our attention to the fact that the order u/s 143(3) r.w.s. 147 dated 27.05.2023 for AY 2015-16 is non-maintainable as the same is based upon notice u/s 148 dated 28.07.2022. The ld. Counsel drew our attention to the decision of Hon’ble Apex Court in the case of Rajeev Bansal submitting that in the impugned case Revenue has unequivocally conceded that no action shall be taken for AY 2015-16 and that all notices issued after 01.04.2021 shall be dropped. The ld. Counsel drew our further attention to the fact that apart from few Co-ordinate Benches of this Tribunal, Hon’ble Delhi High Court in the case of Make Mytrip India Pvt. Ltd., Pratishtha Garg and IBIBO Group Pvt. Ltd., Hon’ble Bombay High Court in the case of Hemant Dwarkanath Zemse, etc. have followed the impugned decisions of Hon’ble Apex Court to quash assessment proceedings for AY 2015-16.
The ld. DR placed reliance upon the orders of the lower authorities.
We have heard rival submissions in the light of material placed on record. We have noted that the Revenue has indeed conceded before the Hon’ble Apex Court in the case of Shri Rajeev Bansal that it would not be pursuing cases reopened AY 2015-16 in which notice u/s 148 have been issued after 01.04.2021. Relevant part of the judgement of Hon’ble Apex Court in the case of Shri Rajeev Bansal in Civil Appeal No. Civil Appeal No 8629 of 2024 dated 03rd October, 2024 are reproduced hereunder:-
“….19. Mr N Venkataraman, learned Additional Solicitor General of India, made the following submissions on behalf of the Revenue:
a. Parliament enacted TOLA as a free-standing legislation to provide relief and relaxation to both the assesses and the Revenue during the time of COVID-
"......19. TOLA seeks to relax actions and proceedings that could not be completed or complied with within the original time limits specified under the Income Tax Act;
b. Section 149 of the new regime provides three crucial benefits to the assesses: (i) the four-year time limit for all situations has been reduced to three years; (ii) the first proviso to Section 149 ensures that re-assessment for previous assessment years cannot be undertaken beyond six years; and (iii) the monetary threshold of Rupees fifty lakhs will apply to the re- assessment for previous assessment years;
c. The relaxations provided under Section 3(1) of TOLA apply “notwithstanding anything contained in the specified Act.” Section 3(1), therefore, overrides the time limits for issuing a notice under Section 148 read with Section 149 of the Income Tax Act;
d. TOLA does not extend the life of the old regime. It merely provides a relaxation for the completion or compliance of actions following the procedure laid down under the new regime;
e. The Finance Act 2021 substituted the old regime for re-assessment with a new regime. The first proviso to Section 149 does not expressly bar the application of TOLA. Section 3 of TOLA 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 TOLA, then all the notices issued between 1 April 2021 and 30 June 2021 pertaining to 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 Within 3 Years Expiry of Limitation read Within six Expiry of Limitation Year with TOLA for (2) Years read with TOLA for (4) (1) (2) (3) (4) (5) 2013-2014 31-3-2017 TOLA not applicable 31-3-2020 30-6-2021 2014-2015 31-3-2018 TOLA not applicable 31-3-2021 30-6-2021 2015-2016 31-3-2019 TOLA not applicable 31-3-2022 TOLA not applicable 2016-2017 31-3-2020 30-6-2021 31-3-2023 TOLA not applicable 2017-2018 31-3-2021 30-6-2021 31-3-2024 TOLA not applicable
f. The Revenue concedes that for the assessment year 2015-16, all notices issued on or after 1 April 2021 will have to be dropped as they will not fall for completion during the period prescribed under TOLA….”
We have further noted that the impugned decision of Hon’ble Apex Court have been followed by few Co-ordinate Benches of this Tribunal, Hon’ble jurisdictional High Court in its decision in the case of, Make Mytrip India Pvt. Ltd., Pratishtha Garg and IBIBO Group Pvt. Ltd., Hon’ble Bombay High Court in the case of Hemant Dwarkanath Zemse, etc. We have noted from order of Ld. AO u/s 147/144 dated 27.05.2023 on page-2 that notice u/s 148 was issued to the appellant on 28.07.2022. Accordingly, as the facts of the case are identical to decision of Hon’ble Apex Court in the case of Rajiv Bansal(supra) and therefore in respectful compliance to the impugned decision, we quash the notice u/s 148 dated 28.07.2022 and consequent assessment order u/s 147 r.w.s. 144 dated 27.05.2023.
In the result, the appeal of the assessee is allowed.