TaxTMI 
TaxTMI 
2025 (8) TMI 380
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....ction for AY 2015-16 in C.O. No. 21/Mum/2025, challenges the validity of the assessment order claiming that the reopening proceedings are bad in law and in contradiction to the decision of the Hon'ble Supreme Court in the case of Union of India and Ors. Vs. Rajeev Bansal [2024] 167 taxmann.com 70 (SC). 5. The notice u/s 148 of the Act is dated 30/04/2022. The entire quarrel revolves around this notice. At the outset, we find that this issue has been settled in the case of Union of India v. Rajeev Bansal [2024] 167 taxmann.com 70 (SC) wherein reference is made to the submissions made on behalf of the Revenue vide para 19 which is relevant and the same is reproduced hereunder:- "19. Mr N Venkataraman, learned Additional Solicitor General of India, made the following submissions on behalf of the Revenue: a. Parliament enacted TOLA as a free-standing legislation to provide relief and relaxation to both the assessee's and the Revenue during the time of COVID- 19. TOLA seeks to relax actions and proceedings that could not be completed or complied with within the original time limits specified under the Income Tax Act, b. Section 149 of the new regime provide....
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....Agarwal (supra) treated Section 148 notices issued by the Revenue between 1 April 2021 and 30 June 2021 as show-cause notices in terms of Section 148A(b). Thereafter, the Revenue issued notices under Section 148 of the new regime between July and August 2022. Invalidation of the Section 148 notices issued under the new regime on the ground that they were issued beyond the time limit specified under the Income Tax Act read with TOLA will completely frustrate the judicial exercise undertaken by this Court in Ashish Agarwal (supra)." 5.1. Thus, it can be seen that Revenue conceded before the Hon'ble Supreme Court in para 19(f) for dropping all the notices issued on or after 01/04/2021 for A.Y. 2015-16 as they will not fall for completion during the period prescribed under TOLA. 6. Again the Hon'ble Supreme Court in the case of Deepak Steel and Power Limited vs. CBDT in Civil Appeal Nos. 5177 of 2025, 5178 of 2025 & 5179 of 2025, had the occasion to consider an identical grievance and held as under:- "The learned counsel appearing for the revenue with his usual fairness invited the attention of this Court to a three judge bench decision of this Court in Union of Indi....
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.... of Union of India vs. Rajeev Bansal, Civil Appeal No.8629 of 2024 on 03.10.2024 under which the learned Additional Solicitor General for India has made a concession insofar as the assessment year 2015-16 is concerned. Pending application(s), if any, shall stand disposed of." 8. In light of the aforementioned decisions of the Hon'ble Supreme Court, the impugned notice mentioned hereinabove is set-aside and the resultant order is quashed. Since we have quashed the assessment order on this preliminary issue, other issues raised by the revenue in its appeal and by the assessee in its cross-objection are left open. Accordingly, C.O. No. 21/Mum/2025 for AY 2015-16 is allowed. 9. In C.O. No. 22/Mum/2025, the assessee has raised as much as 11.7 grounds. However, the specific ground argued before us reads as under:- "11.3. The Ld. CIT(A) erred in not considering that notice u/s 148A(b) of the Act, order u/s 148A(d) of the Act and notice u/s 148 of the Act were passed without prior approval of appropriate authority specified u/s 151(ii) of the Act, which is bad in law." 10. The notice u/s 148 of the Act dated 29/07/2022 which is in dispute, is as under:- 11. It....
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....ome 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 Commissioner or Chief Commissioner or Principal Commissioner or Commissioner. 75. After 1 April 2021, the new regime has specified different authorities for granting sanctions under section 151. The new regime is beneficial to the assessee because it specifies a higher level of authority for the grant of sanctions in comparison to the old regime. Therefore, in terms of Ashish Agarwal (supra), after 1 April 2021, the prior approval must be obtained from the appropriate authorities specified under section 151 of the new regime. The effect of Section 151 of the new regime is thus: (i) If income escaping assessment is less than Rupees fifty ....
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....y 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. 78. For example, the three year time limit for assessment year 2017-2018 falls for completion on 31 March 2021. It falls during the time period of 20 March 2020 and 31 March 2021, contemplated under section 3(1) of TOLA. Resultantly, the authority specified under section 151(i) of the new regime can grant sanction till 30 June 2021. 79. Under Finance Act 2021, the assessing officer was required to obtain prior approval or sanction of the specified authorities at four stages: a. Section 148A(a) - to conduct any enquiry, if required, with respect to the information which suggests that the income chargeable to tax has escaped assessment; b. Section 148A(b) - to provide an opportunity of hearing to the assessee by serving upon them a show cause notice as to why a notice under section 148 should not be issued based on the information that suggests that income chargeable to tax has escaped assessment. It must be noted that this requirement has been delet....
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....2022 and issued notice u/s 148 of the Act on 29/07/2022. As per the provisions of section 151 of the Act for the issue of notice, under the relevant Section of the Act on or after 01/04/2021, the prior approval should be obtained from the appropriate authorities specified u/s 151 of the Act in the new regime. The provisions of Section 151 of the Act under the new regime reads as under:- "Sanction for issue of notice. 151. Specified authority for the purposes of section 148 and section 148A shall be, - (i) Principal Commissioner or Principal Director or Commissioner or Director, if three years or less than three years have elapsed from the end of the relevant assessment year; (ii) Principal Chief Commissioner or Principal Director General or where there is no Principal Chief Commissioner or Principal Director General, Chief Commissioner or Director General, if more than three years have elapsed from the end of the relevant assessment year." 13. In assessee's case, from the perusal of paragraph 3 of the notice, exhibited elsewhere, we notice that the same is issued with the approval of the PCIT, Central - 3 on 28/07/2022 and this fact is not con....