2025 (6) TMI 1484

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....by limitation in view of the first proviso to S. 149(1) of the Act and as such the notice issued u/s. 148 is bad in law and deserves to be quashed." 2. Brief facts of the case are that the assessee had filed his return of income for AY 2015-16 on 17.09.2015 declaring total income of Rs. 11,86,80,770/-. Subsequently, the case was taken up for reassessment proceedings based on the information received under Risk Management Strategy as formulated by the CBDT. Notice u/s. 148 dated 23.06.2021 was issued after obtaining the prior approval of the PCIT, Delhi-4. The AO vide order u/s. 147 r.w.s. 144B of the Act dated 29.05.2023 completed the assessment at income of Rs. 36,24,74,243/- by disallowing the short term capital loss u/s. 94(7) of the Act and adding the said amount. In appeal, Ld. CIT(A) partly allowed the appeal of the assessee. Aggrieved, assessee and revenue both are in cross appeals before us. 3. At the time of hearing, ld. Counsel for the assessee submitted that Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, has erred in law and facts of the matter while not quashing the notice issued on 29.07.2022 u/s. 148 of the Act being barred by limitation ....

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.... 2017-2018 will be within the period of limitation as explained in the tabulation below: Assessment Year Within Years Expiry of Limitation read with TOLA for (2) (3) Within Six Years (4) Expiry of Limitation read with TOLA for (4)(5) 2013-14 31.03.2017 TOLA not applicable 31.03.2020 30.06.2021 2014-15 31.03.2018 TOLA not applicable 31.03.2021 30.06.2021 2015-16 31.03.2019 TOLA not applicable 31.03.2022 TOLA not applicable 2016-17 31.03.2020 TOLA not applicable 31.03.2023 TOLA not applicable 2017-18 31.03.2021 TOLA not applicable 31.03.2024 TOLA not applicable (f) The Revenue concedes that for the assessment year 2015-16, all notices issued on or after April 1, 2021 will have to be dropped and they will not fall for completion during the period prescribed under the Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020. In view of the aforesaid, the impugned order dated 29.07.2022 issued under Section 148(A)(d) of the Act as well as the notice dated 29.07.2022 issued under Section 148 of the act in respect of AY 2015-16 are liable to be quashed. The above view is also accepted by the Hon'ble De....

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....legally allowed to issue such statutory notice within 7 days from the end of said exclusion * Summarily, the surviving time period for issuance of valid notice u/s 148 of the new law, where original notice us 148 of the old law issued between 01.04.2021 to 30.06.2021 subsequently considered as show cause notice issued us 148A(b) of the new law in pursuance of judgement of Hon'ble Apex Court in the case of UOI vs. Ashish Agarwal (Supra), would be the time period between 30.06.2021 and the date of issuance of original notice us 148 of the old law. And, where the aforesaid surviving period is less than 7 days, the same would be extended to 7 days. Thereby, such surviving period or extended surviving period shall be added to the due date or extended due date of filing response to communication issued in pursuance of judgement of Hon'ble Apex Court in the case of UOI vs. Ashish Agarwal (Supra) furnishing all material being relied upon by the Assessing Officer. * 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 p....

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....old law and the due date of filing response to communication issued by the Ld. JAO furnishing material being relied upon i.e. period between 23.06.2021 and 17.06.2022, the surviving period would be 7 days after 17.06.2022, i.e., 24.06.2022. Accordingly, the period of limitation for issuance of notice u/s 148 of the new law as envisaged in aforesaid judgement of Hon'ble Apex Court was 24.06.2022. c) However, the Ld. JAO issued the notice of the new law on 29.07.2022 which is more than a month after expiry of period of limitation. Consequently, the notice dated 29.07.2022, issued under section 148 of the Act, is time-barred. Accordingly, by virtue of period of limitation prescribed by the Hon'ble Apex Court in the case of UOI vs. Rajeev Bansal (Supra) and correlated facts of the case of the appellant, it is clearly evident that the statutory notice issued u/s 148 of the new law is barred by limitation and thereby, deserves to be quashed. Consequently, these proceedings ought to be adjudged null and void ab initio, and the resultant assessment order dated 29.05.2023 merits annulment and should be rescinded forthwith. Prayer: In view of the foregoing submissions, it is mo....

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....ws (Relaxation and Amendment of Certain Provisions) Act, 2020, Section 3 of the Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 applies to the entire Income-tax Act, including sections 149 and 151 of the new regime. Once the first proviso to section 149(1)(b) is read with Taxation and other Laws (Relation and Amendment of Certain Provisions) Act, 2020, then all the notices issued between April 1, 2021 and June 30, 2021 pertaining to the assessment years 2013-2014, 2014-2015, 2015- 2016, 2016-2017, and 2017-2018 will be within the period of limitation as explained in the tabulation below: Assessment Year Within Years Expiry of Limitation read with TOLA for (2) (3) Within Six Years (4) Expiry of Limitation read with TOLA for (4)(5) 2013-14 31.03.2017 TOLA not applicable 31.03.2020 30.06.2021 2014-15 31.03.2018 TOLA not applicable 31.03.2021 30.06.2021 2015-16 31.03.2019 TOLA not applicable 31.03.2022 TOLA not applicable 2016-17 31.03.2020 TOLA not applicable 31.03.2023 TOLA not applicable 2017-18 31.03.2021 TOLA not applicable 31.03.2024 TOLA not applicable (f) The Revenue concedes that for the assessment year 2015-16....

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....f Hon'ble Apex Court in the case of UOI vs. Ashish Agarwal (Supra) shall be deemed to be excluded from the period of limitation for issuance of notice u/s 148 of the new law. * Also, in view of fourth proviso to section 149 of the new law, in peculiar cases, where immediately after exclusion of said period to be excluded from the period of limitation for issuance of notice us 148 of the new law, the period available with assessing officer for issuance of notice u/s 148 of the new law is less than 7 days, then the assessing officer shall be legally allowed to issue such statutory notice within 7 days from the end of said exclusion * Summarily, the surviving time period for issuance of valid notice u/s 148 of the new law, where original notice us 148 of the old law issued between 01.04.2021 to 30.06.2021 subsequently considered as show cause notice issued us 148A(b) of the new law in pursuance of judgement of Hon'ble Apex Court in the case of UOI vs. Ashish Agarwal (Supra), would be the time period between 30.06.2021 and the date of issuance of original notice us 148 of the old law. And, where the aforesaid surviving period is less than 7 days, the same would be extended ....