IN THE INCOME TAX APPELLATE TRIBUNAL RAIPUR BENCH, RAIPUR BEFORE SHRI R. K. PANDA, VICE PRESIDENT AND SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER Assessment year : 2015-16 Assessment year : 2015-16 Assessment year : 2015-16 Assessment year : 2015-16 Assessment year : 2015-16 Assessment year : 2015-16 Assessee by : Shri Sunil Kumar Agrawal Department by : Dr. Priyanka Patel, Sr. DR Date of hearing : 14-11-2025 Date of pronouncement : 01-01-2026

O R D E R

PER R.K. PANDA, VP:

This appeal filed by the Revenue is directed against the order dated

11.02.2025 of the Ld. CIT(A) / NFAC, Delhi relating to assessment year 2015-16.

2. Facts of the case, in brief, are that the assessee is a partnership firm and engaged in the business of rice milling and trading of paddy, rice, broken rice etc. It filed its return of income for the impugned assessment year i.e. assessment year 2015-16 on 29.09.2015 declaring total income of Rs.8,01,710/-. The case of the assessee was selected for scrutiny under CASS. The Assessing Officer completed the assessment u/s 143(3) of the Act on 16.12.2017 determining the total income of the assessee at Rs.37,39,870/- by making addition of Rs.29,38,157/-.

3. Subsequently information was made available with the department that the assessee is a beneficiary of Rs.44,87,500/- on account of bogus purchases from M/s. Maa Sharda Process and Rs.74,12,500/- from M/s. Shri Vaishno Devi Exim. Accordingly a notice u/s 148 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) was issued on 30.06.2021 after obtaining approval of the PCIT-1, Raipur. Subsequently, pursuant to the order of Hon’ble Supreme Court and the Instruction No.01/2022 of the CBDT issued on 11.05.2022 another notice u/s 148 of the Act was issued on 23.07.2022 after obtaining approval of CCIT by passing order u/s 148A(d) of the Act. The Assessing Officer completed the assessment u/s 147 r.w.s. 144B of the Act on 23.05.2023 determining the total income of the assessee at Rs.1,27,01,710/- by making addition of Rs.1,19,00,000/- as unexplained expenditure u/s 69C of the Act on account of bogus purchases.

4. Before the Ld. CIT(A) / NFAC, the assessee apart from challenging the addition on merit, challenged the validity of re-assessment proceedings. The Ld. CIT(A) / NFAC held that the Additional Solicitor General of India, on behalf of the Revenue agreed that the notice issued for the A.Y. 2015-16, between 01-04- 2021 and 30-06-2021 are not eligible for benefit of TOLA and therefore, all notices issued u/s 148 on or after 1st April 2021 and before 30-06-2021, following the procedure of pre-amended provisions of reassessment will have to be dropped as they did not fall for completion during the period covered under TOLA and subsequent notice issued thereunder. He further held that it is admitted position of the department that notices issued u/s 148 after 01-04-2021, following the old regime of reassessment was bad in law for A.Y. 2015-16, therefore, the impugned order of reassessment, which was initiated by issue of notice u/s 148 on 30-06- 2021 following the old regime of reassessment will not survive for want of valid jurisdiction. In the spirit of justice and following the binding precedence of Hon'ble SC and having regard to stand of the revenue as spelt out by Hon'ble ASG in his submission before Hon'ble SC he held that the assumption of jurisdiction to reassess is bad in law. He accordingly held that the impugned order of assessment is also bad in law. He thus, allowed the appeal of the assessee.

5. Aggrieved with such order of the Ld. CIT(A) / NFAC the Revenue is in appeal before the Tribunal by raising the following grounds:

1) Whether on the facts and in the circumstances of the case the Ld. CIT(A)

was justified in holding that the re-assessment proceedings under section 148 of the Income Tax Act, 1961 were bad in law when issuance of notice under section 148 of the Act on 23.07.2022 was valid, as it was issued after obtaining the approval of the C