TaxTMI 
TaxTMI 
TaxTMI 
2025 (10) TMI 92
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.... Assessee had sold an immovable property-a plot measuring 500 square yards for a consideration of Rs. 81,50,000/-. Accordingly, a notice under Section 148 of the Income Tax Act, 1961 ('Act' for short) was issued on 30/06/2021. Following the directions of the Hon'ble Supreme Court of India in the case of Ashish Agarwal and others, the assessing officer proceeded under Section 148A of the Act and issued a fresh notice under Section 148 of the Act on 08/07/2022. In response, the Assessee filed a return of income on 02/08/2022, declaring a total income of Rs. 1,33,780/-, after claiming a deduction under Section 54 of the Act of Rs. 74,55,000/- against the capital gain of Rs. 75,88,778/-. Thereafter, the assessing officer issued a notice....
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....ovided the date and event chart and sought for allowing the Ground No.1 of the Assessee. 5. Per contra, the Ld. Departmental Representative submitted that Ground No. 1 of the Assessee that notice issued u/s 148 of the Act is barred by limitation does not have merit. Further submitted that, issuing of the notice and the initiation of re-assessment proceedings are well within the limitation, thus relying on the order of the Lower Authorities, sought for dismissal of the Appeal. 6. We have heard both the parties and perused the material available on record. The Ld. Assessee's Representative submitted a table/chart of date and events for the purposes of calculating the period of limitation in issuing the for notice u/s 148 of the Act,....
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....igh Courts and ultimately got settled by the Hon'ble Supreme Court in the case of Union of India Vs. Ashish Agarwal reported in 444 ITR 1 (SC) dated 04.05.2022. After the Judgment of the Hon'ble Supreme Court in the case of Ashish Agarwal (supra), the Id AO issued letter u/s 148A(b) of the Act on 25.05.2022 fixing date for compliance on 09.06.2022, which fact is evident from notice u/s 148A(b) of IT Act. The assessee has not made compliance of the said notice as same was never served as per the Assessee. The Ld. AO passed an order u/s 148A(d) of the Act on 08.07.2022 and proceeded to issue notice u/s 148 of the Act on 08.07.2022. Now the question that arises for consideration as to whether the subsequent notice issued u/s 148 of the....
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....l 30.06.2021 [Notification No.38/21 dated 27.04.2021]. Thus, the notice dated 01.06.2021 was issued twenty-nine days prior to the expiry of period of limitation for issuing a notice under Section 148 of the Act as was extended by TOLA. As noted above, the period from 01.06.2021, the date of issuance of notice, and 04.05.2022, being the date 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 e....
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.... period of limitation. 71. It is contended on behalf of the Revenue that the AO is required to pass an order under Section 148A (d) of the Act by the end of the month following the month on which the reply to the notice under Section 148A (b) of the Act was received. Thus, the order under Section 148A (d) of the Act as well as the 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 ....