TaxTMI 
TaxTMI 
2025 (7) TMI 449
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....lsinh Parmar, advocate for the petitioner and learned Senior Standing Counsel Mr. Karan Sanghani, for the respondent. 2. Having regard to the controversy involved which is in narrow compass, with the consent of the learned advocates for the respective parties, the matter is taken up for hearing. 3. Rule returnable forthwith. Learned Senior Standing Counsel Mr. Karan Sanghani, waives service of notice of rule. 4. By this petition under Article 226/227 of the Constitution of India, the petitioner has challenged assessment order dated 27.07.2022 passed by Respondent No. 1 under Section 148A(d) of the Income Tax Act, 1961 (For short "the Act") which inter alia propose to re-open the assessment. 5. The brief facts are as under: 6.....
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....nce of notice, after giving opportunity of filing reply to the assessee. From the date of passing of the order by the Apex Court in case of Union of India v. Ashish Agarwal (Supra) i.e. 21.5.2022, 14 days time was provided to the assessee to reply to the above notice. Therefore, the last date for filing the reply by the assessee was 5.6.2022, which in the instant case was submitted on 06.06.2022. Therefore, the last date to issue notice, as per the judgment of the Apex Court in case of Union of India v. Rajeev Bansal (Supra) would be 13.6.2022, whereas the impugned notice under Section 148 is issued on 27.7.2022. It was therefore, submitted that the notice dated 30.6.2021 which will relate to the notice dated 27.7.2022 as per order passed b....
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....s under the new regime. Hence, it deemed the reassessment notices issued under the old regime as show cause notices under Section 148A(b) of the new regime. Further, the Court directed the Revenue to provide all the relevant material or information to the assesses and thereafter allowed the assesses to respond to the show cause notice by availing all the defences, including those available under Section 149. Thus, the Court balanced the equities between the Revenue and the assesses by giving effect to the legislative scheme of reassessment as contained under the new regime. It supplemented the existing legal framework of the procedure of reassessment under the Income Tax Act with a remedy grounded in equitable standards. iii. Effec....
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....rescribed under the Income Tax Act read with TOLA, was available to the assessing officers to issue the reassessment notices under Section 148 of the new regime. 112. Let us take the instance of a notice issued on 1 May 2021 under the old regime for a relevant assessment year. Because of the legal fiction, the deemed show cause notices will also come into effect from 1 May 2021. After accounting for all the exclusions, the assessing officer will have sixty-one days [days between 1 May 2021 and 30 June 2021] to issue a notice under Section 148 of the new regime. This time starts ticking for the assessing officer after receiving the response of the assessee. In this instance, if the assessee submits the response on 18 June 2022, the ....
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....ubstituted 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 Marc....