TaxTMI 
TaxTMI 
2025 (9) TMI 1682
X X X X Extracts X X X X
X X X X Extracts X X X X
....o one Shri Tarun Agarwal, at 16546/- per which were not commensurate with the financials of the company, and after obtaining the approval form the competent authority notice was issued u/s 148 dated 31.03.2021 which was served upon the assessee on 01.04.2021. Thereafter, reassessment order was passed u/s 147 r.w.s. 144B of the Act wherein addition of Rs. 11,00,00,000/- was made on account of share premium treated as unexplained u/s 68 of the Act r.w.s 115BBE of the Act. 3. Against the said order, assessee filed an appeal before the Ld. CIT(A) wherein assessee has challenged the reassessment order on the ground of validity of reopening as well as on the merits. The Ld. CIT(A) vide impugned order dated 20.08.2024 allowed the appeal of the assessee wherein the legal issue taken by the assessee was dismissed, however, additions were deleted after considering the merits of the case. 4. Against the said order, the Revenue is in appeal before the Tribunal by taking the following grounds of appeal: "1. Whether in facts and circumstances of the case, Ld. CIT(A) was right in allowing appeal of the assessee. 2. Whether in facts and circumstances of the case Ld. CIT(A) ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....As per ld. AR since in the instant case, notice u/s 148 was received/served upon the assessee on 01.04.2021 therefore, the procedure as provided u/s 148A of the Act should be followed before the issue of notice u/s 148 which has not been done. Therefore, according to ld. AR, consequent reassessment proceedings based on such invalid notice deserves to be held bad in law and liable to quashed. Reliance is also placed on the judgment of the Hon'ble Supreme Court in the case of Union of India vs. Rajiv Bansal [2024] 469 ITR 46 (SC). Further reliance is placed on the judgment of the Hon'ble jurisdictional high Court in the case of Suman Jeet Agarwal and Ors. vs. ITO & Ors. [2022] 449 ITR 517 (Del.) and in the case of Makemytrip India Private Limited vs. DCIT & Anors. Reported in [2025] 4 TMI 46 (Delhi). The assessee further filed details written submissions wherein the assessee has relied upon various other judgments also on this issue. The written submission is reproduced as under: "1. The present appeal filed by the Revenue pertains to AY 2015-16. In the application filed by the assessee under rule 27 of the Appellate Tribunal Rule, 1963, it has raised ground that assessme....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... to be considered as show-cause-notices under Section 148A (b) as per the directions of the apex Court in the Ashish Agarwal (Supra) judgment 31.3. Category 'C': The petitions challenging Notices falling under category 'C' which were digitally signed on 31st of March 2021, are disposed of with the direction to the JAQs to verify and determine the date and time of dispatch as recorded in the ITBA portal in accordance with the law laid down in this judgment as the date of issuance. If the date and time of dispatch recorded is on or after 1st of April, 2021, the Notices are to be considered as show cause notices under Section 144A (b) as per the directions of the apex Court in the Ashish Agarwal (Supra) Judgement. 31.4. Category D. The petitions challenging Notices fating under category 'D' which were only uploaded in the E-Filling portal of the assesses without any real time alert, are disposed of with the direction to the JAOs to determine the date and time when the assessee's viewed the Notices in the E-filing portal, as recorded in the ITBA portal and conclude such date as the date of issuance in accordance with the low laid down in this j....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ioned that its directions would also apply to three categories: (i) the judgment and order passed by the High Court of Judicature at Allahabad; (ii) all judgments and orders passed by the different High Court on the issue where notices issued under Section 148 of the old regime after 1 April 2021 were set aside; and (iii) writ petitions pending before various High Courts in which notices under Section 148 of the old regime issued after 1 April 2021 are under challenge. 152 The Court mentioned the above three categories to clarify that the general nature of its directions will also give a quietus to the matters that have already been adjudicated or are pending adjudication before judicial forums. The operation of the directions cannot be limited to the above three categories, especially when this Court has specifically held that "the present order shall be applicable PAN INDIA." 5. In the present case, admittedly the assessing officer has not followed the new law and has completed the assessment under old law as is evident from assessment order and the order rejecting the objection raised by assessee. Accordingly, assessment framed by the assessing officer is bad in law and....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 31.03.2023 TOLA not applicable 2017-2018 31.03.2021 30.06.2021 31.03.2024 TOLA not applicable (f) The Revenue concedes that for the assessment year 2015-2016, all notices issued on or after 1 April 2021 will have to be dropped as they will not fall for completion during the period prescribed under the TOLA. 9. Following the aforesaid concession, this court in Ibibo Group Private Limited v Assistant Commissioner of Income Tax Circle 10-1, & Anr.: W.P.(C) 17639/2022 decided on 13.12.2024 allowed the petition challenging a similar notice for AY 2015-16 which was issued beyond the period of limitation as concededly TOLA was not applicable. Similar orders has also been passed by other courts as well. 10. In The Income Tax Officer Ward 1(2) Jaipur v R.K. Build Creations Pvt. Ltd: Special Leave Petition (Civil) Diary No. 59625/2024 the Supreme Court dismissed the SLP arising from a similar decision rendered by the Hon'ble Rajasthan High Court in DB CWP No. 14414/2022 The said order is set out below: "Delay condoned. Having regard to the concession made by the petitioner-Department in the case of Union of India vs. Rajeev ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ax Act R/w Section 13(1) of the Information Technology Act, we do not see any reason to do so. The request is declined. ...." When there is no fresh tangible due material distinct from what was very much available, the re-opening in such circumstance is impermissible and Assessment proceedings cannot be initiated on basis of mere change in opinion 8. Your Honor, in this regard it is pertinent to mention that the assessee has already been scrutinized under section 143(3) of the act wherein the Id. AO has assessed the income of the assessee at the returned income of Rs. 2,93,54,930/- 9. During the course of assessment proceedings u/s 143(3) of the Act, the assessee company was specifically asked to provide the details of shareholders and valuation of share capital raised during the year. All the details of shareholder along with the valuation report was submitted by the assessee in response to the notice issued to the assessee company and thereafter the assessment was completed u/s 143(3) of the Act at the returned income of Rs. 2,93,54,930/- vide order dated 24.11.2017. 10. Thus, the initiation of proceedings u/s 147 constitutes change of....
X X X X Extracts X X X X
X X X X Extracts X X X X
....parately if not already digitally signed. -Please quote your PAN in all communications. - Income Tax Department does not seek any taxpayer information like user name, password, details of ATM, credit cards, etc. Taxpayers are advised not to part with such information on the basis of emails. 10. The fact of receipt of notice u/s 148 by the assessee on 01.04.2021 is further accepted by the AO in the order passed u/s 148A(d) disposing the objections raised by the assessee, wherein the AO has made following observations: "First of all, it is submitted that the assessee has filed its objection on 09.02.2021 whereas notice u/s. 142(1) of the Act was issued on 07.12.2021 seeking specific details in connection with its assessment proceedings. As far as contention raised by the assessee at point no.8 is concerned, the same is not acceptable in view of the fact that the notice u/s 148 was generated and duly digital signed by the then AO on the very same day ie. 31.03.2021 at 5:51 PM as clear from the plain reading of the said notice. Due to some technical reasons it was sent and served on 01.04 2021 by the ITBA system. However, as far as question of dis....
X X X X Extracts X X X X
X X X X Extracts X X X X
....wed, the same is liable to be quashed. The relevant extract of the Hon'ble Jurisdictional High Court has contained in para 31 are as under: "31. For the reason and principles that we have laid down, we dispose of these Writ Petitions with the following directions. 31.1 Category 'A',: The Notices falling under category 'A', which were digitally signed on or after 14 of Apr, 2021 are held is bear the date on which Notices were digitally signed and not 31st March 2021. The said petitions are disposed of with the direction that the said Notices are to be considered as show cause-notices under Section 148A (h) of the Act as per the directions of the apes Court in the Ashish Agarwal (Supra) judgment. 31.2 Category 'B',: The Notices falling under category 'B' which were sent through the registered e-mal ID of the respective JAOs. Though not digitally singed are held to be valid. The said petitions are disposed of with the direction to the JAOs to verify and determine the date and time of is despatch as recorded in the ITBA portal in acceptance with the law laid down in this judgment as the date of issuance. If the date and time of despatch recorded i....
X X X X Extracts X X X X
X X X X Extracts X X X X
....dgment in Ashish Agarwal (Supra) 31.7. We may note that in the writ petitions, the petitioners have raised additional defenses to challenge the impugned Notices. Such additional defenses have not been considered by this Court and the petitioners shall be at liberty to raise all such additional defenses as available in law 31.8. We are conscious that the time granted by the Supreme Court in Ashish Agarwal to the Department has since expired on 3rd June, 2022 however, the proceedings in the present wit petitions were stayed on 24th March, 2022 until the pronouncement of this judgment. Therefore, we grant the JACs in the instance eight (8) weeks time from today to determine the date of issuance of the Notices as per the law laid down in this judgment. 31.9. The Notices which in accordance with the law laid down in this judgment has been verified by the JAOs to have been issued on or after 01st April 2021 and until 30th June, 2021 shall be deemed to have been issued under Section 148A of the Act of 1961 as substituted by the Finance Art, 2021 and construed to be show-cause notices in terms of Section 148A(b) as per the judgment of the apex Court in Ashish Aga....