TaxTMI 
TaxTMI 
TaxTMI 
2025 (2) TMI 1207
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.... Section 250 of the Income Tax Act, 1961 [hereinafter referred to as 'the Act'], whereby the Ld. CIT(A) had disposed off the appeal of the Assessee against the Assessment Order, dated 26/05/2023, passed under Section 147 read with Section 144B of the Act, for the Assessment Year 2014-2015. The Assessee has filed cross objection. 2. The relevant facts in brief are that notice under Section 148 of the Act (old regime) was issued to the Assessee for the Assessment Year 2014-2015 on 07/06/2021 (i.e., after the expiry of 4 years but before the expiry of 6 years from the end of Assessment Year 2014-2015). Subsequently, in compliance with the judgment of the Hon'ble Supreme Court in the case of Union of India vs. Ashish Agarwal 444 ITR 1 (SC) [04....
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.... dated 24.07.2022 is bad in law. The Ld. AO has not fulfilled the jurisdictional requirements of section 147 to 151 of the Act." 4. We have heard both the sides and have perused the material on record in relation to this issue. We have also taken into consideration the judicial precedents cited during the course of hearing. 5. There is no dispute as to facts. It is admitted position that the notice issued under Section 148 of the Act (old regime) on 24/07/2022, was treated as notice issued under Section 148A(b) of the Act by the Assessing Officer. Thereafter, order under Section 148A(d) of the Act, was passed on 24/07/2022, and the same was followed by issuance of notice dated 24/07/2022, under Section 148 of the Act (new regime). Thus, ....
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....ons) Act, 2020: "b. Interplay of Ashish Agarwal with TOLA 108.The Income-tax Act read with TOLA extended the time limit for issuing reassessment notices under section 148, which fell for completion from 20 March 2020 to 31 March 2021, till 30 June 2021. All the reassessment notices under challenge in the present appeals were issued from 1 April 2021 to 30 June 2021 under the old regime. Ashish Agarwal (supra) deemed these reassessment notices under the old regime as show cause notices under the new regime with effect from the date of issuance of the reassessment notices. The effect of creating the legal fiction is that this Court has to imagine as real all the consequences and incidents that will inevitably flow from the fiction. East ....
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.... the benefit of all consequences flowing from the fiction. See State of A P v. A P Pensioners Association [2005] 13 SCC 161. [This Court observed that the "legal fiction undoubtedly is to be construed in such a manner so as to enable a person, for whose benefit such legal fiction has been created, to obtain all consequences flowing therefrom."] 110.The effect of the creation of the legal fiction in Ashish Agarwal (supra) was that it stopped the clock of limitation with effect from the date of issuance of Section 148 notices under the old regime [which is also the date of issuance of the deemed notices].As discussed in the preceding segments of this judgment, the period from the date of the issuance of the deemed notices till the supply o....
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....tween 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 assessing officer will have sixty-one days from 18 June 2022 to issue a reassessment notice under section 148 of the new regime. Thus, in this illustration, the time limit for issuance of a notice under section 148 of the new regime will end on 18 August 2022. 113. In Ashish Agarwal (supra), this Court allowed the assesses to avail all the defences, including the defence of expiry of the time limit specified under section 149(1). In the instant appeals, the reassessment notices p....
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....gime (which is also the date of issuance of the deemed notices), would start running again when final reply to the notice deemed to have been issued under Section 148A(b) of the Act is received by the Assessing Officer. It was clarified that a reassessment notice issued beyond the surviving time limit would be time-barred. 10. We find in the present case notice under Section 148 of the Act (old regime) was issued on 07/06/2021 and was deemed to be notice issued under Section 148A(b) of the Act (new regime). Thus, the surviving time limit can be calculated by computing the number of days between the date of issuance of the deemed notice (i.e., 07/06/2021) and 30/06/2021, which comes to 23 days. The clock started ticking only after Revenue r....