Delhi HC Sets Aside Reassessment Notice u/s 148A as Time-Barred Under TOLA [Read Order]
The court accepted the petitioner’s contention based on the Revenue’s concession in Rajeev Bansal, where it was admitted that reassessment notices for AY 2015–16 issued on or after 1 April 2021 were invalid
![Delhi HC Sets Aside Reassessment Notice u/s 148A as Time-Barred Under TOLA [Read Order]](https://www.taxscan.in/wp-content/uploads/2025/05/Reassessment-Notice-Time-Barred-Under-TOLA-Taxation-and-Other-Laws-Act-taxscan.jpg "Delhi HC Sets Aside Reassessment Notice u/s 148A as Time-Barred Under TOLA [Read Order]")
The High Court of Delhi set aside a reassessment notice issued under Section 148A for Assessment Year 2015–16, holding it time-barred under the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (TOLA). Lalit Gulati, petitioner-assessee, filed the return of income for AY 2015–16 on 23.09.2015, declaring income of ₹13.63 crore. The Assessing...
The High Court of Delhi set aside a reassessment notice issued under Section 148A for Assessment Year 2015–16, holding it time-barred under the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (TOLA).
Lalit Gulati, petitioner-assessee, filed the return of income for AY 2015–16 on 23.09.2015, declaring income of ₹13.63 crore. The Assessing Officer(AO) issued a notice under Section 148 on 05.04.2021 to reopen the assessment. Although this notice was issued after 31.03.2021, the new procedure under Section 148A was not followed. Instead, the AO relied on the old reassessment provisions.
On 30.05.2022, the AO referred to the Supreme Court’s ruling in Ashish Agarwal and treated the earlier notice as one under Section 148A(b), sharing information about possible income escapement. The petitioner replied on 16.06.2022.
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On 23.07.2022, the AO passed an order under Section 148A(d), followed by a fresh notice under Section 148 on the same date.
The assessee argued that these proceedings should be set aside based on the Supreme Court’s ruling in Rajeev Bansal, where the Revenue admitted that all notices issued for AY 2015–16 on or after 1 April 2021 must be dropped, as they were time-barred when read with TOLA.
The division bench Justice Vibhu Bakhru and Justice Tejas Karia held that the notice issued on 23.07.2022 and the related reassessment proceedings had to be set aside, relying on the concession made by the Revenue in the Rajeev Bansal case.
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It also referred to the Supreme Court’s decision in Deepak Steel and Power Ltd., where similar notices for AY 2015–16 issued after 1 April 2021 were quashed based on the same concession. The Supreme Court had accepted that such notices could not be completed within the time allowed under the TOLA.
The court noted that the issue was already settled in favour of the petitioner in the case of Makemytrip India Pvt. Ltd.Accordingly, the bench quashed the notice dated 23.07.2022 and set aside all related proceedings. The petition was allowed.
To Read the full text of the Order CLICK HERE
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