AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2025 (9) TMI 517
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....35 dated 27.01.2025 against the order of assessment passed u/s 147 r.w.s. 144 of the Income-tax Act, 1961 (hereinafter referred to as 'the Act') dated 30.05.2023 by the NaFAC (hereinafter referred to as 'ld. AO'). 2. Ground Nos. 1 to 5 raised by the assessee are challenging the validity of assumption of jurisdiction u/s 147 of the Act, wherein, it has been pleaded that the notice u/s 148 of the Act is barred by limitation. This goes to root the matter and hence, is taken up first for adjudication. 3. We have heard the rival submissions and perused the material available on record. The assessee is a public charitable trust carrying on various educational and charitable activities. The trust is duly registered under section 12AA of the ....
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....r subsequent proceedings with reference to section 148A(b) of the Act without providing the relevant information and documents to the assessee. The assessee was given two weeks time to respond to the said notice i.e. on or before 10-6-2022. On 31-5- 2022. the assessee in response to notice issued under section 148A(b) of the Act dated 27-05-2022 requested for copy of the documents/ materials/ evidences on which the learned AO was placing reliance. The assessee also requested before the Learned AO that the period of two weeks time is to be reckoned from the date on which the relevant information / documents/ materials / evidences relied upon by the Learned AO were handed over to the assessee. On 06-06-2022, the assessee again requested for a....
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....sessing officers were deemed to have been inhibited from acting in pursuance of the Section 148A(b) notice till the relevant material was supplied to the assesses. Therefore, the show cause notices were deemed to have been stayed until the assessing officers provided the relevant information or material to the assesses in terms of the direction issued in Ashish Agarwal (supra). To summarize, the combined effect of the legal fiction and the directions issued by this Court in Ashish Agarwal (supra) is that the show cause notices that were deemed to have been issued during the period between 1 April 2021 and 30 June 2021 were stayed till the date of supply of the relevant information and material by the assessing officer to the assessee. After....
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....er 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. 9. Now let us apply the aforesaid decision to the facts of the instant case before us. For this, the following dates would be relevant:- A. Date of original notice under section 148 28-6-2021 B. Time remaining till 30-6-2021 2 days C. Date of last reply to notice issued under section 148A(b) by Assessee 15-6-2022 D. Extended date by which notice should have been issued Under section 148 as per Ashish Agarwal & Rajeev Bansal (C + B) 17-6-2022 E. Actual date of issuance o....
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....e of decision of the Supreme Court in Union of India & Ors. v. Ashish Agarwal is required to be excluded by virtue of the third proviso to Section 149 (1) of the Act. 67 Additionally, the period from the date of decision in Union of India & Ors. v. Ashish Agarwal2 till the date of providing material, as required to the accompanied with a notice under Section 148A (b) of the Act. is required to be excluded. Thus, the period between 04.05.2022 to 30.05.2022, the date on which the AO had issued the notice under Section 148A (b) of the Act in furtherance of his earlier notice dated 01.06.2021, is also required to be excluded by virtue of the third proviso to Section 149 (1) of the Act as held by the Supreme Court in Union of India & Or....
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....e notice under Section 148 of the Act (both dated 30.07.2022) are within the prescribed period. This contention is without merit as it does not take into account that proceedings under Section 148A of the Act necessarily required to be completed within the period available for issuing notice under Section 148 of the Act, as prescribed under Section 149 of the Act. Thus, the time available to the AO to pass an order under Section 148A (d) of the Act was necessarily truncated and the same was required to be passed on or before 12.07.2022. The fourth proviso to Section 149 of the Act did not come into play as the time period available for the AO to pass an order under Section 148A (d) of the Act was in excess of the seven days. 72. In....