ITAT: Reassessment Notice for AY 2013-14 Issued After 1st April 2021 is Barred by Limitation

Brief Facts of the Case

The case involves the assessee, Manjusha Mittal, for the Assessment Year (AY) 2013-14. The Assessing Officer initiated reassessment proceedings by issuing a notice under Section 148 of the Income-tax Act on 30th July 2022². The primary issue challenged by the assessee was the validity of this notice, arguing that it was barred by limitation.

Decision of the Tribunal

The ITAT allowed the assessee’s appeal, holding that the reassessment notice was invalid as it was issued beyond the time limit. The Tribunal’s decision was based on the following key points:

Reliance on Precedent: The Tribunal followed the decision of its coordinate bench in the case of Deepak Aggarwal Vs. DCIT, which in turn relied on judgments from the Supreme Court.
Revenue’s Concession in Supreme Court: The Tribunal noted that the Revenue had made a concession before the Supreme Court in the case of Union of India & Others Vs. Rajeev Bansal⁴⁴⁴⁴. The concession was that for AY 2015-16, all reassessment notices issued on or after 1st April 2021, would be dropped as they would not be covered by the extension provided under the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (TOLA).
Application to the Current Case: Since the notice in the present case was for AY 2013-14 (an earlier year) and was issued on 30th July 2022 (after the 1st April 2021 cut-off), the Tribunal concluded that the reopening was barred by limitation.

As the legal issue of jurisdiction was decided in the assessee’s favor, all other arguments on the merits of the case were rendered academic.

Case Citation

Manjusha Mittal vs. ITO, Ward-29 (1), Delhi

Appeal Number: ITA No. 5065/Del/2025
Date of Judgment: 13th October 2025
Tribunal: Income Tax Appellate Tribunal, Delhi Bench ‘SMC’

Source:- Judgement