TaxTMI 
TaxTMI 
TaxTMI 
2025 (10) TMI 930
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....ports, Supreme Court, 2008, 216 CTR 195 SC wherein the facts and circumstances have no resemblance with the instant case. 3. Whether in facts and circumstances of this case the Ld. CIT(A) has erred in allowing the appeal of the assessee by relying on the judgment of Lovely Exports (Supra.), whereas it is known that the above judgment has been challenged time and again and various judicial precedents such as Shankar Industries vs CIT (Cal) 114 ITR 689, Hari Chand Virender Paul vs CIT (P&H) 140 ITR 148 and CIT vs Biju Patnaik (SC) 160 ITR 674 have been ruled in favor of the revenue?. 4. In case of Mangilal Jain vs ITO (MAD) 315 ITR 105 and CIT us Precision Finance (P) Ltd. 208 ITR 465 the Hon'ble Courts have reiterated that "Assessee must prove identity of credits, capacity of creditor to advance money and genuineness of transaction." And as such the addition made by the AO was justified? 5. Whether in facts and circumstances of this case the Ld. CITA) has erred in allowing the submission of additional evidences under Rule 464 even though it was vehemently opposed by the AO based on circumstances of the case? 3. Where as in the cross objection assess....
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....pra). As per the said show-cause notice assessee was given two week's time to submit his reply, i.e., on or before 07/06/2022 so that jurisdictional Assessing Officer can pass order u/s. 148A(d) if necessary. Since assessee did not file any reply within due date given, i.e., 07/06/2022. Thereafter, ld. AO passed order us/148A(d) of the Act on 28/07/2022 and notice u/s. 148 under the new regime was issued on 28/07/2022. 5. Before us ld. Counsel submitted that now in view of the judgment of the Hon'ble Supreme Court in the case of Union of India vs. Rajeev Bansal (2024) 469 ITR 46 the AO had to pass the order u/s 148A(d) and issue notice u/s 148 within the surviving time once the time limit for filing of reply by the assessee is over. Here in this case, notice u/s. 148 of the Act under the old regime was issued on 28/06/2021 and the time limit for issuance of notice u/s. 148 under the old regime was 30/06/2021 as held by the Hon'ble Supreme Court in the case of Ashish Agarwal (supra). Thereafter, the ld. AO had issued a notice in compliance of the decision of the Hon'ble Supreme Court in the case of Ashish Agawwal (Supra) supplying the information in his show-cause notice u/s. 148....
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.... into account for passing the order u/s. 148A(d) and issue notice u/s. 148 is applicable and therefore, ld. AO had the time to issue notice till 30/07/2022 and accordingly, notice issued u/s. 148 dated 28/07/2022 is within time. 7. We have heard both the parties and also perused the relevant facts and dates for adjudicating the issue of limitation. The Hon'ble Supreme Court in the case of Rajeev Bansal explaining the ratio laid down in similar judgment of Ashish Bansal wherein the Hon'ble Supreme Court had exercised its discretionary jurisdiction under Article 142 of the Constitution of India while explaining the old law and new law u/s 148, has created a legal fiction and balancing act on the existing legal framework of procedure of re-assessment. Wherever the notice u/s. 148 were issued under the old regime for which time limit was extended up to 30/06/2021, the Hon'ble Apex Court held that it would be deemed that re-assessment notice issued under the old regime shall be treated as show-cause notice issued u/s. 148A(b) of the new regime. Further the Court directed the Revenue to provide all the relevant material / information to the assessee and thereafter, allowed the assesse....
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.... the new regime would have to be issued within the time limits extended by TOLA. As a corollary, the reassessment notices to be issued in pursuance of the deemed notices must also be within the time limit surviving under the Income-tax Act read with TOLA. This construction gives full effect to the legal fiction created in Ashish Agarwal (supra) and enables both the assesses and the Revenue to obtain the benefit of all consequences flowing from the fiction. See State of A P v. A P Pensioners Association [2005] 13 SCC 161. [This Court observed that the "legal fiction undoubtedly is to be construed in such a manner so as to enable a person, for whose benefit such legal fiction has been created, to obtain all consequences flowing there from." 8. Thus, the Hon'ble Supreme Court had explained the concept of surviving or balance time limit which is to be calculated by computing number of days between dates of issuance of deemed notice and 30/06/2021. Thereafter, the Hon'ble Supreme Court has elaborated the effect of the legal fiction propounded in the case of UOI vs. Ashish Agarwal which has been explained in para 110 to 112 which is reproduced hereunder:- 110. The effect of t....
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....end on 18 August 2022." 9. The sequitor of the aforesaid observation and the judgment of the Hon'ble Supreme Court are that- * Firstly, exclusion of the period has been explained; a) the date of issuance notice u/s 148 under the old regime reckoned to be the date of issuance of the deemed notices u/s 148A(b); b) 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 assessee's is to be excluded from the computation of the period of limitation; c) further, period of two weeks granted to the assessee to reply to the show-cause notice is also to be excluded in terms of third proviso to Section 149; * Secondly, once the response of the assessee to the show-cause notice has been received, then "the clock starts ticking for the Revenue", that is, after the receipt of reply, ld. AO has to; (a) consider the reply of the assessee u/s. 148A(c); (b) take a decision u/s. 148A(d) based on the available material and the reply of the assessee; and (c) issue a notice u/s. 148 if it was a fit case for re-assessment. Once it is found to be a ....
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....ed to the assessee's to respond to the show-cause notices; and (h) The Assessing Officers were required to issue the reassessment notice under section 148 of the new regime within the time limit surviving under the Income-tax Act read with the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020. All notices issued beyond the surviving period are time barred and liable to be set aside;" Ergo, ld. AO was required to issue notice u/s. 148 of the new regime within the time surviving under the Income Tax Act read with TOLA and any notices issued beyond the surviving period was declared to be time barred by the Hon'ble Supreme Court. 11. Now here in this case, the chronology of date and issuance of notices for the purpose of calculation of limitation and surviving days as per the decision of the Hon'ble Supreme Court in the case of Rajeev Bansal can be illustrated in the following manner:- Sr. No. Particulars Date of Notice Surviving days 1. Notice issued u/s. 148 of the Act under old regime. 28.06.2021 2. Due date for issuance of notice under old regime 30.06.2021 2 3. Notice issued by Ld. A.O....