ITAT Delhi Quashes Reassessment as Section 148 Notice Issued Beyond Limitation Period

ITAT quashed the reassessment proceedings against the assessee, holding that the Section 148 notice dated July 29, 2022, was time-barred.

The present appeal has been filed by Amita Jain against ITO in the ITAT Delhi, challenging the order passed by CIT(A) dated July 31, 2025, under section 250 of the Income Tax Act, 1961.

The AO issued a notice under section 148 of the Income Tax Act on June 28, 2021, for reopening the assessment for AY 2013-14. In view of the judgement of the Supreme Court of India in the case of Ashish Aggarwal, the said notice was treated as a show-cause notice under the amended provisions of law.

Thereafter, the AO issued a show-cause notice under section 148A(b) dated May 29, 2022, to which the assessee filed a reply on June 8, 2022. The AO received the reply on June 10, 202,2 after which he passed an order under section 148A(d) and issued a notice under section 148 dated June 29, 2022.

The assessee then approached CIT(A). However, CIT(A) upheld the action of the AO and confirmed the validity of the reassessment proceedings.

Being aggrieved with this decision, the assessee then filed an appeal before the tribunal. During the hearing, AR contended that the notice issued under section 148 dated June 29, 2022, was barred by limitation in view of the decision of the Hon’ble Supreme Court in the case of Rajeev Bansal vs. Union of India dated October 3, 2024. The AR contended that, in the present case, the AO had time only up to June 12, 2022, and since the notice issued under section 148 was beyond the permissible time limit, the same is liable to be treated as invalid.

After considering all the facts, the tribunal added that the impugned notice issued under section 148, having been served beyond the prescribed period of limitation, is clearly barred by law and therefore liable to be quashed. Accordingly, the tribunal set aside the said notice as well as the assessment order arising therefrom.