Anju Khosla v. Income Tax Officer Ward 15 1 Delhi & Anr.

1. This petition is filed with the following prayers:-

Notice dated 31.08.2024 under section 148 of the Income Tax Act, 1961 for the A.Y.2015-16 issued by the Respondent No. 1 to the petitioner and all the consequential proceedings emanating therefrom including letter dated 15.10.2025.

Court deem just and proper in the facts and circumstances of the case, may kindly be passed in favour of the humble petitioner.”

2. Mr Mani Bhadra Jain, learned counsel appearing for the petitioner states that the reassessment proceedings initiated against the petitioner is in respect of the Assessment Year (AY) 2015-16 under the unamended Act and the limitation period for the issuance of the notice under Section 148 of the Income Tax Act, 1961 (the Act), has expired, and hence the proceedings need to be set aside.

3. Mr Apoorv Aggarwal, learned JSC appearing on behalf of the Revenue has not shown anything contrary to what has been contended by the learned counsel for the petitioner.

4. We find that the issue in hand is squarely covered by the decision of this Court wherein a Coordinate Bench, in an identical situation as is prevailing in the case in hand in the case of Makemytrip India Private Limited v. Deputy Commissioner of Income Tax Circle 16 (1) Delhi & Anr, Neutral Citation: 2025:DHC:1892-DB in paragraphs 2 to 11 has held as under:- “2. The petitioner impugns a notice dated 27.07.2022 [the impugned notice] issued under Section 148 of the Income Tax Act, 1961 [the Act] in respect of the Assessment Year [AY] 2015-2016 and contends that the same is barred by limitation.

3. The petitioner had filed its return of income for AY 2015- 2016 on 28.11.2015. Thereafter, on 25.10.2017, the petitioner entered into an Advance Pricing Agreement [APA]. Consequently, its return of income was required to be modified for the said year. The return as modified was selected for scrutiny. The said proceedings culminated in an assessment order dated 29.12.2018 passed under Section 143(3) of the Act whereby the petitioner’s income was assessed at ₹ 1,90,02,11,840/-.

4. Aggrieved by the same, the petitioner filed an appeal before the Commissioner of Income Tax (Appeals) [CIT(A)]. The said appeal was allowed by an order dated 24.06.2019 and the additions made by the Assessing Officer [AO] were set aside.

5. Thereafter on 21.04.2021, the AO issued a notice under Section 148 of the Act seeking to reopen the assessment for the AY 2015-16. The said notice was issued under the provisions relating to reassessment of income (Sections 147 to 151) of the Act as were in force on 31.03.2021 and prior thereto. The petitioner filed its return of income in response to the said notice and also sought reasons for re-opening of the assessment.

6. In the meanwhile, several petitions were filed assailing such notices that were issued under Section 148 of the Act after 31.03.2021 but following the statutory regime for reassessment as was in enforce prior to the said date. Some of these petitions were allowed on 15.12.2021 by a decision in Mon Mohan Kohli v. ACIT & Anr.: Neutral Citation No.: 2021:DHC:4181-DB and other connected matters. Similar decisions were rendered by some other High Courts.

7. These decisions were appealed by the Revenue before the Supreme Court. In Union of India & Others v. Ashish Agarwal: (2023) 1 SCC 617, the Supreme Court, issued certain directions in exercise of powers its under Article 142 of the Constitution of India including the direction to treat such notices issued under Section 148 of the Act as notices under Section 148A(b) of the Act. The AO was also directed to furnish such material and information to the assessees as were required to accompany a notice under Section 148A(b) of the Act.

8. In a subsequent decision in Union of India and Others v. Rajeev Bansal: 2024 INSC 754, the Supreme Court considered the manner of applicability of the provisions of Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 [TOLA]. During the said proceedings it was conceded on behalf of the Revenue that TOLA was not applicable for reopening the assessments for AY 2015-16. The said concession was recorded in paragraph 19(f) of the said decision. Paragraphs 19 (e) and 19(f) of the said decision are relevant and are set out below: - “(e) The Finance Act 2021 substituted the old regime for re-assessment with a new regime. The first proviso to Section 149 does not expressly bar the application of TOLA. Section 3 of the TOLA applies to the entire Income Tax Act, including Sections 149 and 151 of the new regime. Once the first proviso to Section 149(1)(b) is read with TOLA, then all the notices issued between 1 April 2021 and 30 June 2021 pertaining to the assessment years 2013-2014, 2014-2015, 2015- 2016, 2016-2017, and 2017-2018 will be within the period of limitation as explained in the tabulation below: Assessment year Within 3 Years Expiry of Limitation read with TOLA for (2) Within six Years Expiry of Limitation read with TOLA for (4) (1) (2) (3) (4) (5) 2013-2014 31-3-2017 TOLA not applicable 31-3-2020 30-6-2021 2014-2015 31-3-2018 TOLA not 31-3-2021 30-6-2021 2015-2016 31-3-2019 TOLA not 31-3-2022 TOLA not 2016-2017 31-3-2020 30-6-2021 31-3-2023 TOLA not 2017-2018 31-3-2021 30-6-2021 31-3-2024 TOLA not (f) The Revenue concedes that for the assessment year 2015-2016, all notices issued on or after 1 April 2021 will have to be dropped as they will not fall for completion during the period prescribed under the TOLA.”

9. Following the aforesaid concession, this court in Ibibo Group Private Limited v Assistant Commissioner of Income Tax Circle 10-1, & Anr.: W.P.(C) 17639/2022 decided on 13.12.2024 allowed the petition challenging a similar notice for AY 2015-16 which was issued beyond the period of limitation as concededly TOLA was not applicable. Similar orders has also been passed by other courts as well.