TaxTMI 
TaxTMI 
2025 (7) TMI 309
X X X X Extracts X X X X
X X X X Extracts X X X X
.... authority, the AO issued notice u/s 148 of the Act on 26.07.2022. An opportunity has been given to the assessee to submit response, show cause notice has also been issued and in response to the show cause notice, the assessee submitted his reply along with relevant documents but the AO assessed the total income of the assessee as Rs. 2,32,12,633/- by making an addition u/s 68 of the Act to the tune of Rs. 2,26,30,613/-. 3. Aggrieved by the said order, the assessee preferred an appeal before the Ld. CIT(A) wherein the appeal of the assessee has been dismissed as there was noncompliance before the Ld. CIT(A). Being aggrieved and dissatisfied the assessee preferred an appeal before us. 4. In course of submission, the ld. A.R has raised legal grounds thereby submitting that the approval is bad in law as in the present case, approval was granted by the PCIT -5, Kolkata however, after amendment w.e.f 01.04.2021the new regime and into being forced and sanction should be granted by PCCIT. The ld. Counsel placed reliance on the following judgment, Supreme Court judgment passed in Union of India & Ors. Vs. Rajib Bansal reported in 469 ITR 46, on the order passed by the ITAT, Ahmeda....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Principal Commissioner or Commissioner Section 151(i) of the new regime Three years or less than three years from the end of the relevant assessment year Principal Commissioner or Principal Director or Commissioner or Director Section 151(ii) of the new regime More than three years have elapsed from the end of the relevant assessment year Principal Chief Commissioner or Principal Director General or Chief Commissioner or Director General 74. The above table indicates that the specified authority is directly co-related to the time when the notice is issued. This plays out as follows under the old regime: (i) If income escaping assessment was less than Rupees one lakh: (a) a reassessment notice could be issued under section 148 within four years after obtaining the approval of the Joint Commissioner; and (b) no notice could be issued after the expiry of four years; and (ii) If income escaping was more than Rupees one lakh: (a) a reassessment notice could be issued within four years after obtaining the approval of the Joint Commissioner; and (b) after four years but within six years after obtaining the approval of the Principal Chief Commi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....020 to 31 March 2021. TOLA will accordingly 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 an extended time till 30 June 2021 to grant approval. In the case of Section 151 of the old regime, the test is: if the time limit of four years from the end of an assessment year falls between 20 March 2020 and 31 March 2021, then the specified authority under section 151(2) has time till 31 March 2021 to grant approval. The time limit for Section 151 of the old regime expires on 31 March 2021 because the new regime comes into effect on 1 April 2021." We have also gone through the order passed by the ITAT, Ahmedabad Bench and the relevant portion of the order is reproduced herein under: "7. We have given our thoughtful consideration and perused the materials available on record including the Paper Book filed by the Assessee. Section 149 of the Act prescribes time limit for issuance....
X X X X Extracts X X X X
X X X X Extracts X X X X
....on 151(2) of the old regime Before expiry of four years from the end of the relevant assessment year Joint Commissioner Section 151(1) of the old regime After expiry of four years from the end of the relevant assessment years. Principal Chief Commissioner or Chief Commissioner of Principal commissioner or Commissioner Section 151(i) of the new regime Three years or less than three years from the end of the relevant assessment year Principal Commissioner or Principal Director or Commissioner or Director Section 151(ii) of the new regime More than three years have elapsed from the end of the relevant assessment year Principal Chief Commissioner or Principal Director General or Director General 74. The above table indicates that the specified authority is directly co-related to the time when the notice is issued. This plays out as follows under the old regime: (i) If income escaping assessment was less than Rupees one lakh: (a) a reassessment notice could be issued under Section 148 within four years after obtaining the approval of the Joint Commissioner; and (b) no notice could be issued after the expiry of four years; and (ii) If income esca....
X X X X Extracts X X X X
X X X X Extracts X X X X
....use the assessing officer could not comply with the pre- conditions due to the difficulties that arose during the COVID-19 pandemic. Section 3(1) of TOLA relaxes the time limit for compliance with actions that fall for completion from 20 March 2020 to 31 March 2021. TOLA will PART E accordingly 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 an extended time till 30 June 2021 to grant approval. In the case of Section 151 of the old regime, the test is: if the time limit of four years from the end of an assessment year falls between 20 March 2020 and 31 March 2021, then the specified authority under Section 151(2) has time till 31 March 2021 to grant approval. The time limit for Section 151 of the old regime expires on 31 March 2021 because the new regime comes into effect on 1 April 2021." 7.2. Further the Bombay High Court in the case of Holiday Developers (P.) Ltd. vs. ITO ....