2025 (11) TMI 1134

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....me for AY 2018-19 on 31.10.2018 at an income of Rs. 23,49,490/-. As per the information available with the Department, the assessee had taken accommodation entries to the extent of Rs. 21,50,000/- during the FY (hereinafter referred to as FY) 2017-18 relevant to AY 2018-19. After following the procedure as laid down by the Hon'ble Supreme Court in the case of Union of India vs. Ashish Agrawal (civil Appeal No. 3005/2022) notice u/s 148 dated 27.07.2022 was issued. The AO after considering the submissions of the assessee completed the assessment by adding (i) accommodation entries of Rs. 29,00,000/- and (ii) interest expenditure of Rs. 2,84,164/-. The assessment was completed at an income of Rs. 55,33,654/-. 3. Aggrieved by the said order....

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....on'ble Supreme Court judgment on the Rajib Bansal case. The relevant portion of the order on this issue has been settled is thus: "48. Notices have to be judged according to the law existing on the date the notice is issued. Section 149 of the old regime primarily provided two time limits: (i) four years for all situations and (ii) beyond four years and within six years if the income chargeable to tax which escaped assessment amounted to Rupees one lakh or more. After 1 April 2021, the time limits prescribed under the new regime came into force. The ordinary time limit of four years was reduced to three years. Therefore, in all situations, reassessment notices could be issued under the new regime if not more than three years have e....

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....ry threshold from Rupees one lakh to Rupees fifty lakhs. The old regime prescribed a time limit of six years from the end of the relevant assessment year if the income chargeable to tax which escaped assessment was more than Rupees one lakh. In comparison, the new regime increases the time limit to ten years if the escaped assessment amounts to more than Rupees fifty lakhs. This change could be summarized thus: Regime Time limit Income chargeable to tax which has escaped assessment Old regime Four years but not more than six years Rupees one lakh or more New regime Three years but not more than ten years Rupees fifty lakhs or more 51. Given Section 149(1)(b) of the new regime, reassessment notices could b....