2025 (6) TMI 654

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....e Act'), for A.Y. 2015-16, date of order 23/10/2014. The impugned order was originated from the order of the Assessment Unit, Income-tax Department (for brevity, 'the Ld.AO') passed under section 147 r.w.s. 144 read with section 144B of the Act, date of order 26/05/2023. 2. The brief facts of the case are that the assessee's case was reopened under section 148 by issuing notice dated 28/04/2021. During, the assessment proceeding the Ld.AO found that the assessee has deposited cash amount to Rs.2,05,19,450/- in M/s Sri Renuka Mata Multistate Urban Cooperative Credit Society Ltd. During the assessment, the assessee was asked to explain the source of the deposit of cash with documentary evidence, but the assessee was unable to do so. Accord....

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....2 5 Order passed by the Ld. JAO u/s 148A(d) of the Act 22/07/2022 6 Notice issued u/s 148 of the Act - New Provisions 22/07/2022 The Ld. AR, during the course of arguments, submitted that the notice issued by the Ld. AO for A.Y. 2015-16 has been quashed by the Hon'ble Supreme Court in the case of Union of India v. Rajeev Bansal [2024] 167 taxmann.com 70 (SC). The issue stands squarely covered by the decision of the Co-ordinate Bench of the ITAT, Mumbai Bench 'B', in the case of ACIT, Circle 19(1) v. Manish Financial, in ITA Nos. 5055 & 5050/Mum/2024, order dated 02.12.2024. The relevant portion of the said order is reproduced below: "6. We heard the parties and perused the material on record. In assesse....

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....e 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 section 149(1)(b) of the old regime continues to exist for the assessment year 2021-2022 and before. Resultantly, a notice under Section 148 of the new regime cannot be issued if the period of six years from the end of the relevant assessment year has expired at the time of issuance of the notice. This also ensures that the new time limit of ten years prescribed under section 149(1....

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....t the test for checking the validity of notices issued under section 148 under new regime for AYs 2021-22 or prior years is whether the period of six years has expired at the time of issue of such notice and in that case the notice under section 148 becomes invalid. These observations also makes it clear that the time limit of ten years as per the amended provisions of section 149(1)(b) can be applied only prospectively. In assessee's case when we apply this test for AY 2015-16, the period of six years has expired on 31.03.2022 and therefore the notice dated 29.07.2022 under section 148 of the Act for AY 2015-16 is invalid since it is barred by limitation. Accordingly the assessment completed under section 147 of the Act is liable to be....