2025 (1) TMI 1236

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ts, it is apparent that the controversy involved is covered in favour of the petitioner by a decision of this court in Manju Somani v. Income Tax Officer Ward-70(1) & Ors: Neutral Citation: 2024:DHC:5411-DB. 4. We also consider it apposite to refer to the following passages of the decision of the Supreme Court in Union of India & Ors. v. Rajeev Bansal: 2024 SCC OnLine SC 2693 whereby the said view has been upheld. "46. The ingredients of the proviso could be broken down for analysis as follows: (i) no notice under Section 148 of the new regime can be issued at any time for an assessment year beginning on or before 1 April 2021; (ii) if it is barred at the time when the notice is sought to be issued because of the "time limits specified under the provisions of' 149 (1) (b) of the old regime. Thus, a notice could be issued under Section 148 of the new regime for assessment year 2021-2022 and before only if the time limit for issuance of such notice continued to exist under Section 149 (1) (b) of the old regime. *** *** *** 49. The first proviso to Section 149 (1) (b) requires the determination of whether the time limit prescribed under ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....n respect of all such notices irrespective of whether any challenge against the said notices was subsisting at the relevant time. Additionally, the Revenue was also directed to furnish the material to the assessee on which such notices were premised. 7. Following the directions issued by the Supreme Court, the AO had supplied the material to the petitioner. After considering the petitioner's response, the AO passed an order dated 27.07.2022 under Section 148(A) (d) of the Act and issued a notice dated 27.07.2022 under Section 148 of the Act in respect of AY 2016-17. The aforesaid notice dated 27.07.2022 was challenged by the petitioner in W.P.(C) 1006/2023 and by an order dated 27.01.2023, the operation of the said notice was stayed. 8. The petitioner's challenge to the said notice was, inter alia, founded on the basis that it had been issued without the necessary mandatory approvals. The said issue is decided by this court in a batch of matters, including the petition filed by the petitioner [WP(C) 1006/2023], in Twylight Infrastructure Pvt. Ltd. v. Income Tax Officer Ward 25(3) Delhi & Ors.: Neutral Citation No. 2024:DHC:259-DB. The relevant extract of the said decision is ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....n (2) of section 143, but before the expiry of the time limit for making the assessment, reassessment or recomputation as specified in sub-section (2) of section 153, every such notice referred to in this clause shall be deemed to be a valid notice.... xxx xxx xxx 149. (1) No notice under section 148 shall be issued for the relevant assessment year,- (a) if four years have elapsed from the end of the relevant assessment year, unless the case falls under clause (b) or clause (c); (b) if four years, but not more than six years, have elapsed from the end of the relevant assessment year unless the income chargeable to tax which has escaped assessment amounts to or is likely to amount to one lakh rupees or more for that year; (c) if four years, but not more than sixteen years, have elapsed from the end of the relevant assessment year unless the income in relation to any asset (including financial interest in any entity) located outside India, chargeable to tax, has escaped assessment.... xxx xxx xxx 151. (1) No notice shall be issued under section 148 by an Assessing Officer, after the expiry of a period of four years from t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... year, unless the case falls under clause (b); (b) if three years, but not more than ten years, have elapsed from the end of the relevant assessment year unless the Assessing Officer has in his possession books of account or other documents or evidence which reveal that the income chargeable to tax, represented in the form of asset, which has escaped assessment amounts to or is likely to amount to fifty lakh rupees or more for that year... xxx xxx xxx 151. Specified authority for the purposes of section 148 and section 148A shall be,- (i) Principal Commissioner or Principal Director or Commissioner or Director, if three years or less than three years have elapsed from the end of the relevant assessment year; (ii) Principal Chief Commissioner or Principal Director General or where there is no Principal Chief Commissioner or Principal Director General, Chief Commissioner or Director General, if more than three years have elapsed from the end of the relevant assessment year..." [Emphasis is ours] 7. A careful perusal of the above extract would show that after amendment, Section 151 has been split and the part which enjoins....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....r Commissioner or Director. However, if more than three (3) years from the end of the relevant AY have elapsed, the specified authority for according approval for reassessment shall be the Principal Chief Commissioner or Principal Director General or, where there is no Principal Chief Commissioner or Principal Director General, Chief Commissioner or Director General. 12.2. That the approval is mandatory is plainly evident on perusal of the first proviso appended to Section 148 of the Act. the said proviso, at the risk of repetition, reads as follows: "...Provided that no notice under this section shall be issued unless there is information with the Assessing Officer which suggests that the income chargeable to tax has escaped assessment in the case of the assessee for the relevant assessment year and the Assessing Officer has obtained prior approval of the specified authority to issue such notice...." 12.3. In these cases, there is no dispute that although three (3) years had elapsed from of the end of the relevant AY, the approval was sought from authorities specified in clause (i), as against clause (ii) of Section 151. 12.4. Before us, the cou....