TaxTMI 
TaxTMI 
2024 (11) TMI 763
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.... by limitation. The main contention of the revenue is that the notices issued u/s. 148 have been deemed to be extended by Section 3 of TOLA, therefore, all the notices sent are within time limit and same is in consonance of the judgment of the Hon'ble Supreme Court in the case of Union of India vs. Ashish Agarwal reported in (2023) 1 SCC 617. With the help of relevant dates mentioned in the assessment as well as appellate order following chronology of dates for the issue of notice u/s. 148 is culled out: A.Y. Time Limit For Issuance of Notice (Within Six Years) Date of Notice 2013-14 31/03/2020 29/07/2022 2014-15 31/03/2021 31/07/2022 2015-16 31/03/2022 28/07/2022 4. The case for A.Y.2013-14 was reopened by Jurisdictional Assessing Officer by issue of notice u/s. 148 on 23/04/2021 and then ld. AO stated that in view of the decision of the Hon'ble Supreme Court in the case of Union of India vs. Ashish Agarwal reported in (supra) wherein it has been held that notice u/s. 148 of the Act issued during the period 01/04/2021 to 30/06/2021 under the old law are deemed to be show-cause notice issued under 148(b) under the new law and has directed the ....
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....ologies Ltd., and held that notice issued u/s. 148 have been issued beyond the time limit of six years which had expired on 31/03/2022 and here the notice has been issued after the due date. 8. We find that now this issue has been settled by the latest judgment of the Hon'ble Supreme Court in the case of Union of India vs. Rajeev Bansal in Civil Appeal No.8629 of 2024 alongwith other civil appeal numbers. The Hon'ble Supreme Court had referred to the submissions made on behalf of the Revenue vide para 19 which is quite relevant and same is reproduced hereunder:- 19. Mr N Venkataraman, learned Additional Solicitor General of India, made the following submissions on behalf of the Revenue: a. Parliament enacted TOLA as a free-standing legislation to provide relief and relaxation to both the assessee's and the Revenue during the time of COVID- 19. TOLA seeks to relax actions and proceedings that could not be completed or complied with within the original time limits specified under the Income Tax Act, b. Section 149 of the new regime provides three crucial benefits to the assesses: (i) the four-year time limit for all situations has been reduced to three y....
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.... 148 notices issued by the Revenue between 1 April 2021 and 30 June 2021 as show-cause notices in terms of Section 148A(b). Thereafter, the Revenue issued notices under Section 148 of the new regime between July and August 2022. Invalidation of the Section 148 notices issued under the new regime on the ground that they were issued beyond the time limit specified under the Income Tax Act read with TOLA will completely frustrate the judicial exercise undertaken by this Court in Ashish Agarwal (supra). 9. Thus it can be seen that, one very important fact which has been stated by the Revenue before the Hon'ble Supreme Court in para 19 (f) wherein the Revenue concedes that for the A.Y.2015-16, all notices issued on or after 1 April 2021 will have to be dropped as they will not fall for completion during the period prescribed under TOLA. Further, for the A.Y.2013-14 and 2014-15 Revenue has accepted that the expiry of the limitation (TOLA) will expire on 30/06/2021. 10. In para 54 the Hon'ble Supreme Court has explained the extension of TOLA time limit till 31/06/2021 in the following manner:- "54. The proviso to Section 149(1)(b) of the new regime uses the expression "beyo....
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.... procedural check is to save the assesses from harassment resulting from the mechanical reopening of assessments.128 A table representing the prescription under the old and new regime is set out below: Regime Time Limits Specified Authority Section 151(2) of the old regime Before expiry of four years from the end of the relevant assessment year Joint Commissioner Section 151(1) of the old regime After expiry of four years from the end of the relevant assessment year Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner Section 151(i) of the new regime Three years or less than three years from the end of the relevant assessment year Principal Commissioner or Principal Director or Commissioner or Director Section 151(ii) of the new regime More than three years have elapsed from the end of the relevant assessment year Principal Chief Commissioner or Principal Director General or Chief Commissioner or Director General 74. The above table indicates that the specified authority is directly co-related to the time when the notice is issued This plays out as follows under the old regime (i)....
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....he relevant assessment year Thus, non-compliance by the assessing officer with the strict time limits prescribed under Section 151 affects their jurisdiction to issue a notice under Section 148. 12. Thus, the Hon'ble Supreme Court clearly held that after 01/04/2021 the new regime has specified different authorities for granting sanction u/s. 151 and since it is a beneficial to the assessee because it specifies the higher level of authority for the grant of sanctions in comparison to the old regime, therefore, in terms of Shri Ashish Agarwal judgment, after 01/04/2021 the prior approval must be obtained from the competent authorities specified u/s. 151 of the new regime and then their Lordships have clearly held in para 76 that the non-compliance by the AO to the restricted time limit prescribed u/s. 151 affects the jurisdiction to issue a notice u/s. 148. 13. In para 94 the Hon'ble Supreme Court has mentioned about the three important periods to see the limitation which are as under:- "4. Before we proceed, we need to bear in mind three important periods: i. The period up to 30 June 2021 - this period is covered by the provisions of the Income Tax Act read w....
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....the test is: if the time limit of four years from the end of an assessment year falls between 20 March 2020 and 31 March 2021, then the specified authority under Section 151(2) has extended time till 31 March 2021 to grant approval; f. The directions in Ashish Agarwal (supra) will extend to all the ninety thousand reassessment notices issued under the old regime during the period 1 April 2021 and 30 June 2021; g. The time during which the show cause notices were deemed to be stayed is from the date of issuance of the deemed notice between 1 April 2021 and 30 June 2021 till the supply of relevant information and material by the assessing officers to the assesses in terms of the directions issued by this Court in Ashish Agarwal (supra), and the period of two weeks allowed to the assesses to respond to the show cause notices; and h. The assessing officers were required to issue the reassessment notice under Section 148 of the new regime within the time limit surviving under the Income Tax Act read with TOLA. All notices issued beyond the surviving period are time barred and liable to be set aside; 15. Thus, from the aforesaid judgment, it is clear that fi....