ITAT Delhi Declares Reopening for AY 2015-16 Invalid When Notice u/s 148 Issued After 01.04.2021

Overview of the Decision

The Delhi bench of the Income Tax Appellate Tribunal in Genpact Servies LLC Vs ACIT, ITA No. 3480/Del/2025, order dated 31.12.2025, has held that reassessment proceedings for Assessment Year 2015-16 initiated via notice under Section 148 issued after 01.04.2021 are barred by limitation. Relying squarely on the binding directions and concession recorded by the Hon’ble Supreme Court in UOI vs. Rajeev Bansal [2024] 469 ITR 46 (SC) and reaffirmed in Deepak Steel and Power Ltd. vs. Central Board of Direct Taxes [2025] 174 taxmann.com 144 (SC), the Tribunal declared the entire reassessment as void ab initio and allowed the assessee’s appeal in full.

The crux of the ruling is that, for AY 2015-16, any notice under Section 148 issued on or after 01.04.2021 is non est in law in view of the limitation framework read with the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (TOLA), and cannot be resuscitated by converting old-regime notices into new-regime proceedings post the Supreme Court’s decision in UOI vs. Ashish Agarwal [2022] 444 ITR 1 (SC).

Factual Matrix and Procedural History

Assessment Year and Original Proceedings

  • Assessment Year: 2015-16
  • Assessee: Genpact Servies LLC
  • Final order challenged: Assessment order dated 11.03.2025 framed under Section 147 read with Section 144C(13) pursuant to directions issued by the Dispute Resolution Panel-2, New Delhi (DRP) on 18.02.2025.

Timeline of Key Events

The assessee’s authorised representative placed on record a clear chronology, which can be summarised as follows:

  1. 08.04.2021 – An original notice under Section 148 (old law) was issued to the assessee for AY 2015-16.
  2. 01.06.2022 – Following the judgment of the Supreme Court in UOI vs. Ashish Agarwal, the Assessing Officer (AO) issued a communication/notice under Section 148A(b) of the Act.
  3. 13.06.2022 and 29.06.2022 – The assessee filed detailed replies to the Section 148A(b) communication.
  4. 29.07.2022 –
    • An order under Section 148A(d) was passed, and
    • A fresh notice under Section 148 (new regime) was issued on the same date.
  5. 11.03.2025 – Final reassessment order was passed under Section 147 read with Section 144C(13) following DRP directions.

The assessee contended that both the original notice dated 08.04.2021 and the fresh notice dated 29.07.2022 were hit by limitation in light of the law declared by the Supreme Court for AY 2015-16.

Grounds Raised Before the Tribunal

The assessee focused principally on Ground Nos. 3 and 4, challenging the very jurisdiction of the AO to reopen the assessment. These grounds, in essence, stated:

  • The entire reassessment exercise under Sections 147/148/148A was without authority of law.
  • The notice issued under Section 148 was barred by limitation under Section 149, thereby vitiating the initiation and all subsequent proceedings.

The assessee’s counsel urged that once the limitation bar is established, the reassessment order under Section 147 read with Section 144C(13) cannot survive.

Reliance on Supreme Court Jurisprudence

Core Reliance: UOI vs. Rajeev Bansal

The assessee placed heavy reliance on **UOI vs.