TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Validity of reopening notices under section 148/148A(b) and TOLA; appeal allowed due to jurisdictional and approval defects.</h1> ITAT considered validity of reopening notices issued as section 148/148A(b) and whether the TOLA limitation regime applied; it found TOLA inapplicable for ... Validity of the Notice issued u/s 148 - statutory time limit for re-opening the cases - applicability of TOLA - compliance of approval in consonance of provisions of Section 151 by the AO, while passing the order u/s. 148A(b) - Effect of pre-amendment s.148 notices issued 01.04.2021-30.06.2021 as s.148A(b) show-cause notices - HELD THAT:- Since TOLA was not applicable to AY 2016-17 as escaped income was more than Rs. 50 lakh, therefore the department could not have deemed the notice under sec 148 as notice under sec 148A(b). Thus, the proceedings in consequence thereto viz order under sec 148A(d), notice under sec 148 and order under sec 147 are invalid and beyond jurisdiction. We note that after 01.04.2021 the time limit for the re-opening the cases where the proposed addition was more than Rs. 50 lakh was 31.03.2023 and this was considered before the Hon'ble Apex Court in Rajeev Bansal [2024 (10) TMI 264 - SUPREME COURT (LB)] wherein it has been held that TOLA is not applicable for A.Y.2016- 2017 where the escapement of income is more than 50 lakhs since the period has not been expired. While passing the order u/s. 148A(b) of the Act, the AO has not taken the approval in consonance of provisions of Section 151 of the Act. The AO has passed order u/s. 148 of the Act and issued notice u/s.148 of the Act after taking approval from PCIT-5, Kolkata whereas in terms of new law operative from 01.04.2021, approval was required to be taken from PCCIT/CCIT. Even on this ground, the order passed u/s.148A(b) of the Act and notice issued u/s. 148 of the Act are invalid. Appeal filed by the assessee is allowed. Issues: Whether the notice issued under Section 148 of the Income-tax Act, 1961 on 18.07.2022 for Assessment Year 2013-14 was barred by time limitation in view of Section 149 read with TOLA and the Supreme Court decision in PCIT v. Rajeev Bansal (2024).Analysis: The judgement applied the principle that the assessing officer's time to issue a notice under section 148 of the new regime runs from the date the assessee's reply to the deemed show-cause (deemed SCN) is received, and must fit within the surviving time available as computed under Section 149 read with TOLA. The analysis relied on the computation method in Rajeev Bansal (supra) and comparable decisions which held that exclusions and the short surviving period permitted only a limited window for issuing reassessment notices; where the actual issuance falls outside that surviving window, the notice is time-barred.Conclusion: Notice under Section 148 dated 18.07.2022 is barred by limitation and is quashed; appeal allowed in favour of the assessee.
TaxTMI 
TaxTMI 
