S. 147 : Reassessment-Limitation-TOLA did not apply as the limitation period expired before 20.03.2020- Notice under section 148 issued in 31-7-2022, which is beyond the prescribed time limit- Reassessment held to be invalid. [S. 68, 133(6), 142(1), 148, 148A(b), 148A(d), 149, 151, 154, 115JB]
The scrutiny assessment was completed under Section 143(3) 29 -12 -2017. The assessment was reopened in 31-7 -2022 based on a search action in the case of Himanshu Verma and others, wherein it was alleged that the assessee facilitated accommodation entries through shell companies. The reassessment proceedings resulted in an addition of ₹39,75,00,000 under Section 68 on the grounds that the assessee failed to establish the identity, creditworthiness, and genuineness of loan transactions. The CIT(A) upheld the reassessment. On appeal, the ITAT quashed the reassessment, holding that TOLA did not apply as the limitation period expired before 20.03.2020. Relying on UOI v. Ashish Agarwal (2022) 138 taxmann.com 64 (SC) and UOI v. Rajeev Bansal (2024) 167 taxmann.com 70 (SC), the Tribunal held that the notice under Section 148 was barred by limitation. Consequently, other grounds, including the Section 68 addition, were held to be academic and not adjudicated on merits. (ITA No. 6269 & 6270/Mum/2024, dated 17.02.2025) (AY. 2015-16, 2017-18)
CLE Private Ltd. v. DCIT (Mum.)(Trib.) www.itatonline.org
[Coram : Hon’ble Shri Amarjit Singh, AM and Hon’ble Shri Rahul Chaudhary, JM]