ITAT Delhi Quashes Reassessment in Shyam Gopal Capital Gains Case for AY 2013–14

Reopening Held Time-Barred Under Rajeev Bansal and TOLA Framework

The Delhi Bench of the Income Tax Appellate Tribunal allowed the appeal filed by Shyam Gopal, holding that the reassessment initiated under Section 148 was barred by limitation. The Tribunal noted that the original notice dated 28 June 2021, deemed to be under Section 148A(b) pursuant to the Supreme Court’s ruling in Union of India v. Ashish Agarwal, required the Assessing Officer to issue a fresh Section 148 notice within the surviving limitation period as clarified in Union of India v. Rajeev Bansal. Since the final notice was issued on 20 July 2022 beyond the permissible window, the reassessment proceedings were held to be legally unsustainable and liable to be quashed.

No Capital Gains Could Be Fastened in AY 2013–14 Even on Merits

The Tribunal further observed that even otherwise, the Revenue had failed to demonstrate any “transfer” event during AY 2013–14 within the meaning of Section 2(47) of the Income Tax Act. The collaboration agreement dated 2002, handing over of possession in January 2012, and completion certificate in 2015 each pointed to different assessment years, none of which aligned with the year under consideration. The Bench rejected the reliance placed on the fire safety certificate of 2012 as a trigger for capital gains taxation and noted that reopening beyond three years was also impermissible in the absence of income represented in the form of an “asset” under Section 149(1)(b). Accordingly, the reassessment order making an addition of ₹5.48 crore was set aside in entirety, with other grounds left open.