TaxTMI 
TaxTMI 
2024 (11) TMI 1029
X X X X Extracts X X X X
X X X X Extracts X X X X
....A was conducted on the assessee-Society on 17.09.2020. Besides, a search and seizure operation under section 132 of the Act and also survey operation under section 133A of the Act was conducted in the business premises of the founder of the assessee-Society, Shri NKP Shah (since deceased) on the same date. During the course of survey operation, certain papers/documents/tally data were found from the residential premises of the assessee, G.D. Mother International School, Genius classes, office of Pankaj Commercial Corporation and Hardware store in the name and style of M/s. Rai Bahadur Tunki Shah. Reassessment Proceedings were initiated for AYs 2015-16 to 2020-21 vide notice issued under section 148 of the Act dated 30.06.2021. The assessment orders were passed on 31.03.2022 under section 147/143(3) of the Act. For all the above assessment years, assessee appealed against before the ld. 1st Appellate Authority. In the meantime, the judgment of the Hon'ble Supreme Court in the case of Union of India -vs.- Ashish Agrawal was pronounced on 4th May, 2022, wherein it was held that the reassessment notice issued under the Old Law (unamended provisions of the Income Tax Act, 1961) shall be....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Counsel for the assessee in the reassessment proceedings completed on 31.03.2022 and, therefore, the same was not in dispute. The ld. PCIT further noted that the Founder-Chairman of the assessee-Society withdrew/diverted the funds of the assessee-society for his personal expenses /purposes as well as for payment to Genius Classes (providing coaching). On the other hand, the assessee claimed that the excess cash received by Shri Nand Kumar Prasad Shah from one employee of the assessee-Society namely Mr. Gaurav, is a normal practice and the money was used to be returned as and when required by the society for meeting its expenditure. It was also submitted that the entries in the day book at pages 96 to 119 showing credits in the name of NKP Shah which belied the allegation of siphoning of funds and as a matter of fact, the money was used for meeting the expenses of the society and not for personal purposes as alleged. The said reply of the assessee was not accepted by the ld. PCIT and finally he held that the assessee-society was not eligible for recognition/approval under section 10(23C)(vi) of the Act for assessment years 2017-18 to 2020-21 and the Notification issued earlier dated....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ulminated in passing of assessment orders under section 147 read with section 143(3) dated 31.03.2022. The ld. A.R. submitted that the appeals preferred before the ld. CIT(Appeals) against the assessment orders passed by the ld. Assessing Officer were, in fact, dismissed vide order dated 28.12.2023 holding that the assessment orders under section 143(3)/147 of the Act dated 31.03.2022 were non-est on the ground that fresh orders under section 143(3)/147 have been passed on 16.11.2023 following new provisions of section 148A of the Act in view of the directions of the Hon'ble Supreme Court in the case of Union of India -vs.- Ashish Agarwal. The ld. A.R. further submitted that thus ld. Assessing Officer himself admitted the notices issued under section 148 of the Act dated 30.06.2021 as invalid for all the assessment years, i.e. 2018-19, 2019-20 and 2020-21 by issuing fresh notice under section 148A(b) of the Act dated 25.05.2022 by virtue of the judgment of the Hon'ble Apex Court in the case of Union of India -vs.- Ashish Agarwal (supra). 6. The ld. A.R. submitted that in the meantime, the most recent judgment of the Hon'ble Apex Court in the case of Rajeev Bansal and Others was pr....
X X X X Extracts X X X X
X X X X Extracts X X X X
....to issue notice under section 148 would be 15th June, 2022 (from 08.06.2022 plus seven days). However, notices were issued to the assessee under section 148 of the Act on 21.07.2022, 22.07.2022 and 26.07.2022 respectively for A.Y. 2018-19, 2019-20 and 2020- 21 which clearly implied that the notices under section 148 were time barred. 8. The ld. A.R. submitted the notices issued under section 148 of the Act for A.Ys. 2018-19, 2019-20 and 2020-21 on 21.07.2022, 22.07.2022 and 26.07.2022 respectively were clearly barred by limitation and hence, the entire proceedings initiated on these time barred notices were without jurisdiction and were liable to be quashed in limine. Therefore the ld. A.R. argued that no valid proceedings were pending before the ld. Assessing Officer to make reference to the ld. PCIT which was sine quo non for making reference under second proviso to section 143(3) of the Act for assessment years 2018-19, 2019-20 and 2020-21. Finally, to sum up the arguments, the ld. A.R. prayed that the impugned orders passed by the ld. PCIT withdrawing the approval granted to the assessee under section 10(23C)(vi) of the Act were without jurisdiction and liable to be quashed fo....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he contention of the ld. A.R. that second proviso to section 143(3) was effective from 1st April, 2022 is based upon unfounded belief and may kindly be dismissed. The ld. D.R. finally prayed that the appeals of the assessee may kindly be dismissed on the legal issue raised by the assessee. 10. We have heard the rival contentions and perused the material available on record carefully including the decisions cited before us during the course of hearing. The undisputed facts as called out of the records are that the above the assessments of the assessee were reopened under section 147 of the Act after survey action under section 133A of the Act on the assessee on 17.09.2020 and also simultaneous action under section 133A as well as under section 132(1) of the Act on the founder of the assessee-Society Shri Nand Kumar Prasad Shah (deceased) on 17.09.2020, when it was found that certain receipts were not accounted for by the assessee-Society in its books of account. The assessments were framed by the ld. Assessing Officer under section 143(3) read with section 147 vide orders dated 31.03.2022 for A.Ys. 2015-16 to 2020-21. The said assessment orders were challenged before the ld. CIT(Ap....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... dated 03.10.2024 (supra), wherein it was held that "the time during which the show cause notices were deemed to be stayed is from the date of issuance of the deemed notice between 1st April, 2021 and 30th June, 2021 till the supply of relevant information and material by the Assessing Officers to the assessee in terms of the directions issued by this Court in Ashish Agarwal (supra) and the period of two weeks was to be allowed to the assessee to respond to the show cause notices". Thereafter in terms of the said decision, the ld. Assessing Officer was 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. In this context, the assessee's contentions is worth merit that the notices issued under section 148 of the Act under the new regime dated 21.07.2022 for A.Y. 2018-19, on 22.07.2022 for A.Y. 2019-20 and dated 26.07.2022 for A.Y. 2020-21 were clearly barred by limitation. In other words, on the date of reference, there was no valid proceeding pending before the ld. Assessing Officer, whereas for making any reference to the ld. PCIT by the ld. Assessing Officer during a pending proceedin....