Relief to MakeMyTrip: Delhi HC quashes Reassessment Notice for AY 2015–16 as time-barred, citing TOLA inapplicability [Read Order]

The Delhi High Court, granting relief to MakeMyTrip, quashed a reassessment notice issued for Assessment Year(AY) 2015–16, holding it time-barred as the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act (TOLA) did not apply to that year.

Make My Trip India Private Limited, petitioner-assessee, challenged a notice dated 27.07.2022 issued under Section 148 of the Income Tax Act for AY 2015–16, claiming it was time-barred. The original return was filed on 28.11.2015. Later, on 25.10.2017, the petitioner entered into an Advance Pricing Agreement (APA), which led to a modified return. This return was picked for scrutiny, and an assessment order under Section 143(3) was passed on 29.12.2018, assessing the income at ₹1,90,02,11,840.

The petitioner appealed the order, and on 24.06.2019, Commissioner of Income Tax(Appeals)[CIT(A)] allowed the appeal, setting aside the additions made by the Assessing Officer(AO).

Later, on 21.04.2021, the AO issued a fresh notice under Section 148 to reopen the assessment, relying on the old reassessment provisions in force before 31.03.2021. The petitioner responded and also sought reasons for the reopening.

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Meanwhile, several similar notices issued after 31.03.2021 under the old regime were challenged. On 15.12.2021, the Delhi High Court in Mon Mohan Kohli v. ACIT & Anr. quashed such notices, and other High Courts also took a similar view.

In Union of India v. Ashish Agarwal (2023), the Supreme Court directed that reassessment notices issued under the old law after 31.03.2021 be treated as notices under the new Section 148A(b). AOs were also asked to share all necessary information with taxpayers.

Later, in Union of India v. Rajeev Bansal (2024), the Supreme Court clarified that TOLA did not apply to AY 2015–16. The Revenue admitted that any notices issued on or after 1 April 2021 for this year were time-barred and had to be dropped.

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Based on this, the Delhi High Court in Ibibo Group Private Limited v. ACIT (2024) set aside a similar notice issued beyond the time limit. Other courts took the same view.

The Supreme Court also dismissed a Special Leave Petition filed by the Revenue in a related case, noting the earlier concession.

The division bench of Justice Vibhu Bakhru and Justice Tejas Karia held that since the notice dated 27.07.2022 was issued beyond the prescribed limitation period and the relaxation under TOLA was not applicable, the notice and all related proceedings were set aside.

In short,the petition was allowed.

To Read the full text of the Order CLICK HERE

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