The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has stated that a reassessment notice issued u/s 148 of the Income Tax Act, 1961, after the specified 6-year limitation period is not valid without jurisdiction. As the notice was issued 3 days after the lapse of the limitation period, the reassessment proceedings based on this notice could not be lawfully sustained.
The assessing officer reopened the case of the taxpayer, Ravindra Sahu, based on the information of cash deposits in his bank account. Under Section 148, a notice was issued, and the assessing officer completed the reassessment.
The taxpayer contested the assessment before the NFAC, but both appeals were dismissed without condoning the delay. Subsequently, he approached the ITAT.
The assessment had been reopened by the assessing officer on the fact that the taxpayer had not submitted an income return despite information of cash deposits of Rs 90 lakh. Since the taxpayer did not reply to the statutory notices, an addition of Rs 90 lakh was made under section 69A.
The taxpayer before the Tribunal claimed that the Section 148 notice dated April 3, 2022, was barred by limitation, as the six years for AY 2015-16 had lapsed on March 31, 2022. The taxpayer referenced the Supreme Court’s decision in Union of India v. Rajeev Bansal and other relevant Tribunal decisions.
The two-member bench, M. Balaganesh (Accountant Member) and Sudhir Kumar (Judicial Member), heard the parties and analysed the material on record. The Tribunal cited that the notice u/s 148 issued on 3rd April 2022 does not hold jurisdiction as it was issued after the lapse of the applicable limitation period.
The Tribunal acknowledged that the 543-day delay in filing the appeal before the NFAC was due to a bona fide error and thus warranted being condoned. Since the Assessing Officer (AO) had presumed jurisdiction based on a time-barred notice, the Tribunal concluded that there was no need to return the matter to the NFAC, as doing so would unnecessarily prolong the litigation.
Both appeals were permitted in the taxpayer’s favour, and the order was pronounced in open court on August 19, 2026.
| Case Title | Ravindra Vs. ITO |
| Case No. | ITA No 161/DEL/2026 |
| Assessee by | Shri M.R. Sahu |
| Revenue by | Shri Rajesh Kumar Dhanesta |
| Delhi ITAT | Read Order |
