ITAT Quashes AY 2015-16 Reassessment as Section 148 Notice Issued After 1 April 2021 Was Invalid

Last updated: 05 August 2026

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Quick Summary

The Income Tax Appellate Tribunal (ITAT) has quashed reassessment proceedings for Assessment Year (AY) 2015-16. This decision was based on a Section 148 notice issued on 29 June 2021, which was deemed invalid. The Tribunal followed the Supreme Court's ruling that notices issued after 1 April 2021 for AY 2015-16 could not be validly served under the relevant tax laws.

Court :
NEW DELHI

Brief :
The Income Tax Appellate Tribunal (ITAT), Delhi Bench, has quashed the reassessment proceedings initiated against Vertex International Private Limited for Assessment Year (AY) 2015-16 after holding that the notice issued under Section 148 of the Income Tax Act on 29 June 2021 was not legally sustainable.

Citation :
ITA No. 204/Del/2026 (A.Y 2015-16)

The reassessment order had been passed under Section 147 read with Section 144B of the Income Tax Act. The assessee challenged the validity of the reopening proceedings through a cross-objection filed before the ITAT.

The assessee relied on the Supreme Court’s decision in Union of India v. Rajeev Bansal, in which the Revenue had conceded that, for AY 2015-16, all notices issued under Section 148 on or after 1 April 2021 would have to be dropped as they could not be completed within the period prescribed under the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (TOLA).

In the present case, the notice under Section 148 had been issued on 29 June 2021. Since the notice was issued after 1 April 2021, the Tribunal held that the reassessment proceedings were not sustainable and quashed the entire proceedings initiated under Section 147.

As the reassessment proceedings themselves were quashed, the Revenue’s appeal against the order of the Commissioner of Income Tax (Appeals) became infructuous and was dismissed.

Accordingly, the assessee’s cross-objection was allowed, while the Revenue’s appeal was dismissed.

Key Takeaway: For AY 2015-16, reassessment proceedings based on a notice issued under Section 148 on or after 1 April 2021 are liable to be quashed in light of the Supreme Court’s ruling in Union of India v. Rajeev Bansal. Once the reassessment proceedings are held to be invalid, any related appeal on the merits of the assessment becomes infructuous.

Disclaimer: This AI-generated summary is for informational purposes only. Please view the attached original judgment for the complete text and authoritative interpretation.

FAQ :

The reassessment proceedings were quashed because the notice under Section 148 was issued on 29 June 2021. This date is after 1 April 2021, making the notice invalid for AY 2015-16 according to the Supreme Court's decision in Union of India v. Rajeev Bansal.

For Assessment Year 2015-16, any notice issued under Section 148 on or after 1 April 2021 was considered invalid by the Supreme Court, as these could not be completed within the prescribed timeframes under the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020.

The assessee challenged the reassessment proceedings by arguing that the Section 148 notice was issued after the crucial date of 1 April 2021, rendering it invalid for AY 2015-16, citing the Supreme Court's decision.

Since the reassessment proceedings were quashed as invalid, the Revenue's appeal against the Commissioner of Income Tax (Appeals) order became infructuous and was subsequently dismissed by the ITAT.