TaxTMI 
TaxTMI 
2025 (3) TMI 995
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.... held in the said judgement. 2. For that the Ld. CIT (A) erred in confirming the order of the AO when notice u/s 148 itself was bad in law since sanction was not taken from proper authority. 3. For that the Ld. CIT (A) erred in confirming the order of the AO when notice u/s 148 was also otherwise bad in law since the original assessment was completed u/s 143(3) wherein all facts were fully disclosed. 4. For that Ld. CIT (A) erred in confirming the order of the AO when the notice u/s 148A(b) issued was barred by limitation since the materials were forwarded after the deadline fixed by the Hon'ble Apex Court and further complete materials were never sent along with the show cause notice. 5. For that Ld. CIT (A) erred in confirming the order of the AO when the notice u/s 148 dated 09/04/2021 (which was treated as show cause notice u/s 148A(b) as per Hon'ble Supreme Court), is bad in law since the reasons recorded along with copy of approval prior to the issue of the notice were not forwarded to the assessee in spite of request and there was nothing on record to show that the requirements for reopening were fulfilled. 6. For that the....
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....e AO when adding back Rs. 8, 61, 123/- as unexplained expenditure u/s 69C on account of alleged commission paid for obtaining the alleged bogus accommodation entry when no evidence has been brought on record to corroborate the same. 15. For the Ld. CIT (A) erred in confirming the order of the AO when on the facts and circumstances of the case, the disallowance of derivative loss of Rs. 4, 30, 56, 175/- only on suspicion and surmises is liable to be deleted." 3. Brief facts of the case are that the assessee had filed the return of income for AY 2015-16 showing total income of Rs. 12, 56, 94, 120/- u/s 139(1) of the Act. Notice u/s 148 of the Act was issued after passing the necessary order u/s 148A(d) of the Act on 30.06.2022 for the reason that fictitious losses in equity/derivative trading amounting to Rs. 4, 30, 56, 175/- through reversal trading were claimed. Several opportunities were provided to the assessee and personal hearing through Video Conferencing (in short VC) was also scheduled which was not attended by the assessee on 10.05.2023 but an adjournment application was filed and revised VC was scheduled for 12.05.2023 but the response of the assessee was recei....
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....t proceedings as the same is barred by limitation. Reference in this connection is invited to the judgement of Hon'ble Apex Court in the case of Rajeev Bansal pronounced on 03.10.2024. Attention is invited to page 52 para f where the revenue conceded before the Hon'ble Apex Court that for the Asst Year 2015-16 all notices issued on or after 01.04.2021 have to be dropped as they will not fall for completion during the period prescribed under TOLA. The judgement has now also been followed by Delhi High Court in the case of Ibibo Group Pvt. Ltd. vs. ACIT in WP(C) No.17639/2022 judgment and order dated 13/12/2024. It has been held that reopening for Asst Year 2015-16 is not permissible in the extended period as per TOLA on and from 01.04.2021. Attention is also invited to the decision of Rajasthan High Court in Civil Writ Petition No. 3667/2023 pronounced on 27.01. 2025 which has also taken the same view. The aforesaid judgements are also being followed by Coordinate Bench of ITAT. Reference is invited to the decision of Coordinate Bench of Mumbai ITAT in the case of Manish Financial in ITA No. 1505/mum/2024 pronounced on 02.12.2024. Latest judgement in the case of Orbit Financ....
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....akhs. . . 64. When enacting a statute, the legislature often endeavours to ensure that the provisions of one legislation do not conflict with provisions of another legislation. Interplay (supra) [between Arbitration Agreements under the Arbitration and Conciliation Act 1996 and the Indian Stamp Act 1899, 2023 INSC 1066]. The purpose of the Income-tax Act is to levy tax on income and raise revenues for the functioning of the Government. On the other hand, the purpose of TOLA is to provide relaxation of the time for completion of any actions or proceedings falling for completion within a particular period. Thus, the two enactments operate in separate and distinct fields. This Court must ensure that the provisions of the two enactments are interpreted harmoniously unless there is an irreconcilable conflict between them. . . b. Reading TOLA into Section 149 68. After 1 April 2021, the Income-tax Act has to be read along with the substituted provisions. The substituted provisions apply retrospectively for past assessment years as well. On 1 April 2021, TOLA was still in existence, and the Revenue could not have ignored the a....
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....ons in comparison to the old regime. Therefore, in terms of Ashish Agarwal (supra), after 1 April 2021, the prior approval must be obtained from the appropriate authorities specified under section 151 of the new regime. The effect of Section 151 of the new regime is thus: (i) If income escaping assessment is less than Rupees fifty lakhs: (a) a reassessment notice could be issued within three years after obtaining the prior approval of the Principal Commissioner, or Principal Director or Commissioner or Director; and (b) no notice could be issued after the expiry of three years; and (ii) If income escaping assessment is more than Rupees fifty lakhs: (a) a reassessment notice could be issued within three years after obtaining the prior approval of the Principal Commissioner, or Principal Director or Commissioner or Director; and (b) after three years after obtaining the prior approval of the Principal Chief Commissioner or Principal Director General or Chief Commissioner or Director General. 76. Grant of sanction by the appropriate authority is a precondition for the assessing officer to assume jurisdiction under section 148 to issue a reassessment notice. ....
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....ent; b. Section 148A(b) - to provide an opportunity of hearing to the assessee by serving upon them a show cause notice as to why a notice under section 148 should not be issued based on the information that suggests that income chargeable to tax has escaped assessment. It must be noted that this requirement has been deleted by the Finance Act 2022;33 c. Section 148A(d) - to pass an order deciding whether or not it is a fit case for issuing a notice under section 148; and d. Section 148 - to issue a reassessment notice. 80. In Ashish Agarwal (supra), this Court directed that Section 148 notices which were challenged before various High Courts "shall be deemed to have been issued under section 148-A of the Income-tax Act as substituted by the Finance Act, 2021 and construed or treated to be show-cause notices in terms of Section 148-A(b)." Further, this Court dispensed with the requirement of conducting any enquiry with the prior approval of the specified authority under section 148A(a). Under Section 148A(b), an assessing officer was required to obtain prior approval from the specified authority before issuing a show cause notice. When this Court....
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....the time limit surviving under the Income-tax Act read with TOLA. A reassessment notice issued beyond the surviving time limit will be time-barred. G. Conclusions 114. In view of the above discussion, we conclude that: a. After 1 April 2021, the Income-tax Act has to be read along with the substituted provisions; b. TOLA will continue to apply to the Income-tax Act after 1 April 2021 if any action or proceeding specified under the substituted provisions of the Income-tax Act falls for completion between 20 March 2020 and 31 March 2021; c. Section 3(1) of TOLA overrides Section 149 of the Income-tax Act only to the extent of relaxing the time limit for issuance of a reassessment notice under section 148; d. TOLA will extend the time limit for the grant of sanction by the authority specified under section 151. The test to determine whether TOLA will apply to Section 151 of the new regime is this: if the time limit of three years from the end of an assessment year falls between 20 March 2020 and 31 March 2021, then the specified authority under section 151(i) has extended time till 30 June 2021 to grant approval; e. In the case of ....
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....end of the relevant assessment 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- (i) an asset; (ii) expenditure in respect of a transaction or in relation to an event or occasion; or (iii) an entry or entries in the books of account, which has escaped assessment amounts to or is likely to amount to fifty lakh rupees or more:] Provided that no notice under section 148 shall be issued at any time in a case for the relevant assessment year beginning on or before 1st day of April, 2021, if a notice under section 148 or section 153A or section 153C could not have been issued at that time on account of being beyond the time limit specified under the provisions of clause (b) of sub-section (1) of this section or section 153A or section 153C, as the case may be, as they stood immediately before the commencement of the Finance Act, 2021: {emphasis supplied} 8.....