For Assessment Year 2015-16, any notice issued under Section 148 of the Income-tax Act on or after April 1, 2021, is barred by limitation and void ab initio, as the TOLA 2020 relaxation does not apply to this specific year.

ORDER

PER SATBEER SINGH GODARA, JM

This Revenue’s appeal for assessment year 2015-16, arises against the Commissioner of Income Tax (Appeals)-3, [in short, the “CIT(A)”], Gurgaon’s order dated 26.08.2025 passed in case no. NFAC/2014-15/10255153, involving proceedings under section 147 r.w.s. 144B of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).

Heard both the parties. Case file perused.

2. The Revenue’s sole substantive grievance raised in the instant appeal seeks to reverse the CIT(A)’s action quashing the reassessment proceeding by holding that the notice u/s 148 was barred by limitation. We notice during the course of hearing that the first and foremost issue of validity of the impugned reopening itself set into motion by the learned Assessing Officer vide section 148 notice issued on 28.06.2021. This is for the precise reason that the department already appears to have conceded the very issue of limitation aspect in Union of India Vs. Rajiv Bansal (2024) 469 ITR 46 (SC) that the provision of Taxation and Other Laws [Relaxation and Amendment of Certain Provisions] Act, 2020 “TOLA” would not apply for assessment year 2015-16 herein. It further emerges that the very issue between the parties is no more res integra in light of the tribunal’s recent learned coordinate bench’s order dated 23.07.2025 passed in ITA No. 2307/Del/2025 ( Sh. Deepak Agarwal vs. DCIT ) having quashed a similar reopening therein, reading as under:

“2. The Ld. Counsel for the assessee, at the outset, submits that in the case of the assessee a notice u/s 148 was issued on 30.07.2022 under new law which is barred by limitation since the provisions of taxation and other laws (relaxation and amendment of certain provisions) (TOLA) are not applicable for the AY 2015-16 as held by the Hon’ble Jurisdictional High Court in the case of Make My Trip (India) Pvt. Ltd. in WP(c) 2558/2023 dated 24.03.2025.

3. Ld. Counsel further submits that recently the Hon’ble Supreme Court in the cases of Deepak Steels & Power Ltd. Vs. CBDT and Others in Civil Appeal No.5177/2025 dated 02.04.2025 noted that the Revenue made a concession before the Hon’ble Supreme Court while disposing off the appeal in the case of Union of India & Others Vs. Rajiv Bansal (2024) (SCC) Online SC 2693, that for the AY 2015-16 notices issued on or after 01.04.2021 will have to be dropped as they would not fall for completion during the period prescribed under the TOLA. Ld. Counsel also submitted that similar view has been taken by the Hon’ble Supreme Court in the case of ACIT Vs. Nehal Rashid Shah in SLP (Civil) Diary No. (S) 57209/2024 dated 4.4.2025. Therefore, it is submitted that in the light of these decisions the reassessment framed for the AY 2015-16 based on the notice issued u/s 148 of the Act dated 30.07.2022, is time barred and bad in law.

4. Ld. DR supported the orders of the Assessing Officer.

5. Heard rival contentions, perused the orders of the authorities below. Admittedly in this case notice u/s 148 was issued on 30.07.2022 under new law based on which the reassessment for the AY 2015-16 was framed by the AO on 31.5.2023. The reassessment was challenged before the Ld. CIT(Appeals) and the Ld. CIT(Appeals) dismissed the appeal for non-prosecution by the assessee.

6. In the case of Make My Trip (India) Pvt. Ltd. Vs. DCIT (supra) the Jurisdictional High Court considered whether reassessment completed for the AY 2015-16 based on a notice issued u/s 148 and the viz a viz the applicability of the provisions of TOLA and based on the concession of the Revenue that for the AY 2015-16 all the notices issued on or after 1.4.2021 will have to be dropped as they will not fall for completion during the period prescribed under the TOLA, held that the notice issue