TaxTMI 
TaxTMI 
2025 (10) TMI 846
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....d be made by her before the Ld. CIT(A) and the order passed by the Ld. CIT(A) was also not communicated to the assessee in time. The assessee came to know about the order of the Ld. CIT(A) only when the penalty notice under Section 270A of the Act was received and thereafter the present appeal was filed. Considering the explanation of the assessee, the delay in filing the appeal is condoned. 3. The brief facts of the case are that the assessee had filed its return of income for the A.Y. 2017-18 on 03.10.2017 declaring total income of Rs. 1,33,51,870/-. The case of the assessee was reopened on the basis of information received from the Assessing Officer, Circle - 2(1), Ahmedabad. It was informed that in the course of survey action u/s 133A of the Act carried out on 24.10.2018 in the case of one Pinaxis Polyplast LLP, certain documents were impounded as per which the assessee had received cash of Rs. 6,00,000/- for sale of certain machinery to M/s. Pinaxis Polyplast LLP, M/s. Pacific Polymers & M/s. Pacific Polyplast. On the basis of this information, the case of the assessee was reopened u/s 147 of the Act after recording the reason. In the course of assessment proceeding, the As....
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....ned Order ex-parte without granting an effective opportunity of hearing to the Appellant in violation of principles of natural justice 9. The Ld. CIT(A) has erred in law and on facts by passing the impugned Order without considering the decision of the Hon'ble Supreme Court in case of Union of India vs. Rajeev Bansal (2024) 167 taxmann.com 70 (SC) dated 03.10.2024 which hold that in cases of deemed show cause notices pursuant to the decision of the Hon'ble SC in the case of Ashish Agarwal, the notice u/s. 148 under the new regime had to be issued within the surviving limit as prescribed under income tax Act read with TOLA, which was not done in the present case. Your Appellant craves leave to add, amend, alter, edit, delete, modify, withdraw, change or substitute all or any of the grounds of appeal at the time of or before the hearing of this appeal." 6. Ms. Shrunjal Shah, Ld. AR of the assessee requested to adjudicate the legal ground taken by the assessee first. She contended that the notice u/s 148 of the Act issued in this case was barred by limitation. It was explained that the initial notice u/s 148 of the Act was issued on 30.06.2021, which was w....
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....ice u/s 148A(b) of the Act, was received. The Ld. Sr. DR explained that the order u/s 148A(d) passed in this case was within the time limit as prescribed under the Act and the notice u/s 148 of the Act was also issued within the time period. Therefore, there was no infirmity with the notice of the AO. 8. We have carefully considered the submissions of the assessee. Before we decide the issue of limitation, it will be relevant to tabulate the actions taken by the Assessing Officer in the present case: - Date Action Taken 30.06.2021 Original Notice u/s 148 of the Act issued by the Assessing Officer 23.05.2022 Notice u/s 148A(b) of the Act issued by the Assessing Officer, pursuant to the decision in the case of Ashish Agarwal. 13.06.2022 Reply filed by the assessee to the notice u/s 148A(b) of the Act. 27.07.2022 Another notice u/s 148A(b) issued by the Assessing Officer 30.07.2022 Reply filed by the assessee to the AO's notice dated 27.07.2022 26.08.2022 Order u/s 148A(d) of the Act passed by the Assessing Officer 26.08.2022 Notice u/s 148 of the Act issued by the Assessing Officer 8.1 The crux of the issue to be decided in this c....
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.....e.f. 01.04.2021. 9.1 In the present case, the original notice u/s 148 of the Act dated 30.06.2021 was issued not under the new provisions, but as per the old provisions of the Act, wherein there was no requirement of any proceeding u/s 148A of the Act. The Hon'ble Supreme Court, in the case of Ashish Agarwal (supra), had directed that all the notices u/s 148 of the Act issued under the old provision between 1 April 2021 and 30 June 2021 shall be treated as show cause notice issued u/s 148A(b) of the Act of the new provision. Thus, this was a case of deemed notice u/s 148A(b) of the Act and the notice u/s 148 of the Act issued on 30.06.2021 under the old provision was deemed as notice u/s 148A(b) of the Act under the new provision. The Apex Court had thus created a legal fiction by deeming the Section 148 notices issued under the old regime as show cause notices under Section 148A(b) of the new regime. The AO, under Section 148A(b) of the Act, had to comply with two requirements: (i) issuance of a show cause notice; and (ii) supply of all the relevant information which formed the basis of the show cause notice. The Supreme Court in the case of Ashish Agrawal....
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....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 of relevant information and material by the assessing officers to the assesses in terms of the directions issued by this Court in Ashish Agarwal (supra) has to be excluded from the computation of the period of limitation. Moreover, the period of two weeks granted to the assesses to reply to the show cause notices must also be excluded in terms of the third proviso to Section 149. 111. The clock started ticking for the Revenue only after it received the response of the assesses to the show causes notices. After the receipt of the reply, the assessing officer had to perform the following responsibilities: (i) consider the reply of the assessee under Section 149A(c); (ii) take a decision under Section 149A(d) based on the available material and the reply of the assessee; and (iii) issue a notice under Section 148 if it was a f....
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....ue the reassessment notice u/s 148 of the new regime within the time limit surviving under the Income Tax Act read with TOLA and that all notices issued beyond the surviving period were time barred and liable to be set aside. This time-line was also demonstrated in para 112 of the order with an illustration. In the present case, the original notice u/s 148 of the Act was issued on 30.06.2021 which was treated as deemed notice u/s 148A(b) of the Act. Since this notice was issued on 30.06.2021, the surviving time period available to the Assessing Officer to complete the further proceedings, including the issue of notice u/s 148 of the Act, was one day only, which was extended to seven days. Accordingly, the Assessing Officer was required to pass the order a u/s 148A(d) of the Act and also to issue notice u/s 148 of the Act in this case within a period of seven days from the date of receipt of reply of the assessee. As the assessee had filed its reply on 30.07.2022, the time limit available to the Assessing Officer to issue the notice u/s 148 of the Act was till 06.08.2022 only. As the notice in the present case was issued on 26.08.2022, the same is found to be beyond the limitation p....
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....matter has to be considered separately on the basis of the facts of case considering the date of issuance of notices under section 148 under TOLA by the Revenue and thereafter date of supplying information to the assessee and date of passing of order under section 148A(d) and date of issuance of notice under section 148 of the Act so as to consider whether issuance of notice under section 148 of the Act is within 'surviving time' as per the direction of Hon'ble Apex Court in case of Rajeev Bansal (supra) or not. 66. So far as Assessment Years 2013-2014 and 2014-2015 are concerned, the period of three years from the end of the assessment year would be over prior to 20.03.2020 and the period of six years would be over between 20.03.2020 and 30.06.2021. Therefore, the notices issued under section 148 of the Act under old regime between 01.04.2021 and 30.06.2021 as per TOLA, will be a valid notice if the notice under section 148 of the Act under new regime is issued within the period of 'surviving time' as per the directions issued by Hon'ble Apex Court in case of Rajeev Bansal (supra). For the Assessment Years 2016-2017 and 2017-2018 are concerned, the....