TaxTMI 
TaxTMI 
2025 (4) TMI 865
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....tion of the Impugned Order dated 30.06.2022 reads as under:- "The assessee is an individual. The assessee during the F.Y. 2016-17 relevant to the A.Y. 2017-18 deposited cash of Rs. 48,96,000/- in bank a/cs during demonetization period. As on 31.03.2016 only Rs. 16,971/- cash balance - failed to explain source for cash deposit online verification. However the assessee filed return of income without considering the said amount. Hence Notice u/s 148A(b) of the Income Tax Act, 1961 was issued to the assessee on 18.05.2022 requiring the assessee to show cause within two weeks as to why a Notice u/s 148 of the Income Tax Act, 1961 should not be issued on the basis of information which suggests that income chargeable to tax has escaped assessment in this case for the Assessment Year 2017- 18. The information in the possession of the undersigned was also communicated to the assessee while granting such opportunity of being heard. In response to the said Notice u/s 148A(b) of the Income Tax Act, 1961, assessee filed reply on 31.05.2022. I have considered the reply of assessee and the same is not acceptable for the following reasons: * Though the assessee ....
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....f the Act has been passed in such case vide DIN-ITBA/COM/F/17/2022- 23/1043685307(1) dated 30/06/2022 and annexed herewith for reference. 2. I, therefore, propose to assess or reassess such income or recompute the loss or the depreciation allowance or any other allowance or deduction for the Assessment Year 2017-18 and I, hereby, require you to furnish, within 30 days from the service of this notice, a return in the prescribed form for the Assessment Year 2017-18. 3. This notice is being issued after obtaining the prior approval of the Principal Commissioner of Income Tax-3, Chennai accorded on date 30/06/2022 vide Reference No.ITBA/COM/F/17/2022-23/1043677784(1). 7. The case of the Petitioner is that the Petitioner is the proprietor of M/s Venkateshwara Traders engaged in the business of wholesale and retail traders in rice and food grains. It is stated that the Petitioner had deposited a sum of Rs. 48,96,000/- pursuant to demonetisation during November, 2016 between the period 08.11.2016 and 31.12.2016. 8. The Petitioner filed its return of income on 03.11.2017 for the AY 2017-2018 admitting a taxable income of Rs. 21,14,624/- and thereafter, proceedings w....
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....pproval; e. ..... f. ..... 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 assessee's in terms of the directions issued by this Court in Ashish Agarwal (supra), and the period of two weeks allowed to the assessee's 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." 12. Considering the submissions made by the learned counsel for the Petitioner and the learned Senior Standing Counsel for the Respondent, the issue for consideration is whether the Notice dated 30.06.2022 issued under Section 148 of the Act as in force from 01.04.2021 would be construed to have been issued within the period of limitation prescribed under amended Section 149 of the Act. 13. The confusion on account of limita....
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....son, the new regime increases the time limit to ten years if the escaped assessment amounts to more than Rupees fifty lakhs. This change could be summarized thus: Regime Time Limit Old Regime Four years but not more than six years New Regime Three years but not more than ten years" 15. The Hon'ble Supreme Court has also taken note of the relaxation in the period of limitation for various assessment years in the light of the Taxation and Other Laws (Relaxation & Amendment of Certain Provisions) Act, 2020 (hereinafter referred to as the 'TOLA') with effect from 20.11.2020 and the Finance Act, 2021 amending the provisions of the Income Tax Act, 1961 with effect from 01.04.2021. In accordance with TOLA, as far as the Assessment Year 2017-2018 is concerned, the period of limitation for issuance of Notice under Section 148 read with Section 149 of the Act as amended by Finance Act, 2021 with effect from 01.04.2021 would be till 30.06.2021, instead of 30.03.2021 and under the old regime on 31.03.2024. This was also captured in the submissions of the Additional Solicitor General of India on behalf of the Income Tax Department before the Hon'ble Supreme Court in....
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....19 TOLA not applicable 31.03.2022 TOLA not applicable 2016-2017 31.03.2020 30.06.2021 31.03.2023 TOLA not applicable 2017-2018 31.03.2021 30.06.2021 31.03.2024 TOLA not applicable 16. However, the first proviso to Section 149 prohibits issuance of a reassessment notice under the new regime if such notices have become timebarred under the old regime. Therefore, the last date for issuance of Notice under Section 148 of the Act would have expired on 30.06.2021, as per the third Proviso 149(1)(b) of the Act as in force with effect from 01.04.2021. The time during which stay was in operation or the time during which, the assessee took time to file the reply, the Notice issued under Section 148 (A)(b) of the Act stands expelled. In this case, the reply itself was filed by the petitioner only on 31.05.2022, pursuant to which the Impugned Order was passed on 30.06.2022 under Section 148(A)(d) of the Act and Notice under Section 148 of the Act was issued. Though the limitation for issuance of a Notice under Section 148 of the Act under the old regime would have expired on 31.03.2024, a reading of conclusion in Paragraph 114 of the decision of the Ho....