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April 2026

A. Reassessment — Income escaping assessment — Audit Objections — Relevant details submitted and on record before the AO during original assessment — It amounts to review of assessment — Re-considering of same material to arrive at different conclusion cannot be permitted — Re-opening of assessment bad-in-law. B. Reassessment — Time limit for issuance of notice for A. Y. 2016-17 — Time limit of four years from the end of the relevant Assessment Year applicable prior to 01/04/2021 — Notice u/s. 148 issued on 31/03/2023 — Beyond a period of four years — First proviso to section 149 — No notice could have been issued under the pre-amended provisions — Notice and subsequent proceedings barred by limitation.

By Keshav Bhujle | Ritu Punjabi, Advocates
Reading Time 6 mins

4. Sapphire Foods India Ltd. vs. ACIT:

(2026) 183 taxmann.com 506 (Del.):

A.Y.: 2016-17: Date of order 16/02/2026:

Ss. 147, 148, 148A and 149 of ITA 1961:

A. Reassessment — Income escaping assessment — Audit Objections — Relevant details submitted and on record before the AO during original assessment — It amounts to review of assessment — Re-considering of same material to arrive at different conclusion cannot be permitted — Re-opening of assessment bad-in-law.

B. Reassessment — Time limit for issuance of notice for A. Y. 2016-17 — Time limit of four years from the end of the relevant Assessment Year applicable prior to 01/04/2021 — Notice u/s. 148 issued on 31/03/2023 — Beyond a period of four years — First proviso to section 149 — No notice could have been issued under the pre-amended provisions — Notice and subsequent proceedings barred by limitation.

The assessee is a company. In the original assessment for AY 2016-17, an addition of ₹24,80,39,169 was made u/s. 56(2)(viib) of the Income-tax Act, 1961 on account of premium charged in excess of the fair market value of the shares by adopting book value instead of the DCF method
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