2026 (2) TMI 703

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....on 147 r.w.sc 144B of the Income Tax Act, 1961 (In short "the Act"). 2. The assessee has raised the legal grounds in appeal that the notice issued u/s 148 of the Act is barred by limitation. This goes to root the matter and hence, is taken up first for adjudication. 3. The brief facts of the case are that the assessee has filed the return of income by declaring income of Rs. 29,820/- on 26-10-2013 for A.Y.2013-14.The return was processed u/s 143(1) of the Act on 13-03- 2014. The case of the assessee was selected for scrutiny u/s 143(3) of the Act and Assessment order was passed on 14-03-2016 with assessed income of Rs. 6,75,260/-.Subsequently information was received through Insight Portal, from the ADIT (Inv)-1Faridabad, Haryana wher....

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....was passes 0n 20-07-2022. Subsequently notice u/s 148 of the Act was issued. The Assessing officer completed the assessment after making the various addition and assed the income of Rs. 12,38,71,899/- against the final Assessment income of Rs. 6,75,260/-. 4. Aggrieved the order of the AO the assessee preferred the appeal before the NFAC who vide order dated 29-08-2025 partly allowed the appeal of the assessee and directed the AO to pass the fresh assessment order in the direction given in the order. Being aggrieved the order of the Ld. NFAC the assessee is in appeal before the Tribunal. 5. Ld. AR for the assessee has raised the legal issue and stated that the notice dated 23-07-2022 issued by AO u/s 148 of the Act is time barred. In t....

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....48 notices under the old regime {Which is also the date of issuance of the deemed notices}. As discussed in the preceding segment of the judgment, the period from the date of the issuance of the deemed notices till the supply of relevant information and material by the assessing officer to the assessee in terms of the direction issued by this court in Ashish Agarwal (Supra) has to be excluded from the computation of the period of limitation. Moreover, the period of two weeks granted to the assessee to reply to the cause notices must be excluded in terms of the third proviso to section 149. 111. The clock started ticking for the Revenue only after it received the response of the assessee to the show cause notices. After the receipt ....

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.... assessee submits the response on 18 June 2022, the assessing officer will have sixty-One days from 18 June 202 to issue a reassessment notice under section 148 of the new regime. Thus, in this illustration, the time limit for issuance of a notice under section 148 of the new regime will end on 18 August 2022." 7. In the above cited case, the revenue concedes that for the assessment year 2015-16, all notices issued on or after 1st April 2021 will have to be dropped as they will not fall for completion during the period prescribed under TOLA. Ld. AR also relied on the following decision: (i) Deveshi Sharma v. Income Tax Officer ward -34(1) Delhi, 2025 (9) TMI 1187 -ITAT Delhi (ii) Honeywell Exim Private Limited v. ACIT, ....