TaxTMI 
TaxTMI 
2025 (11) TMI 1669
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....MD law in holding that the notice u/s 148 of the Income tax Act, 1961 dated 28-07-2022 is barred by limitation relying upon the submission of the department in the case of Rajeev Bansal (Supra) that the reassessment for Assessment year 2015-16 falls outside the provision of TOLA. The said notice was issued as per direction of Hon'ble Supreme Court in the case of Ashish Agarwal (Supra) in new regime (as Amended by finance Act, 2021) of the Income Tax Act, 1961 after approval of specified authority. The escapement income of instant case is more than fifty lakh, the case covered u/s 149(1) (b) of the Act. As per new regime time limit for issuance of notice u/s 148 is 31-03-2026. 2. The Ld. CIT(A) has erred on facts AMD law in holding ....
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.... and fresh notice u/s 148 of the Act was issued. The Assessing Officer completed the reassessment proceedings vide order dated 19-05-2023 passed u/s 147 r.w.s. 144B of the Act by making the addition of Rs. 163,00,00,000/- under section 68 r.w.s.115BBE of the Act. Aggrieved the order of the Assessing Officer the assessee preferred the appeal before the Ld. CIT(A) who vide his order dated 25-03-2025 allowed the appeal against which the Revenue is in appeal before the tribunal. Ld. CIT(A) observed in his order as under: 14. In Ashish Agarwal (supra), Hon'ble Supreme Court deemed the notices issued under section 148 of the old regime as show cause notices issued under section 148A(b) of the new regime which came into being by virtue of....
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....n 149 ensures that reassessment for previous assessment years cannot be undertaken beyond six years; and (iii) the monetary threshold of Rupees fifty lakhs will apply to the reassessment for previous assessment years; c. he relaxations provided under section 3(1) of TOLA apply "notwithstanding anything contained in the specified Act" section 3(1), therefore, overrides the time limits for issuing a notice under section 148 read with Section 149 of the Income Tax Act; d. TOLA does not extend the life of the old regime. It merely provides a relaxation for the completion or compliance of actions following the procedure laid down under the new regime. e. The Finance Act 2021 substituted the old regime for re-assessment....
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....es to the Income Tax Act even after 1 April 2021; and h. Ashish Agarwal (Supra) treated section 148 notices issued by the Revenue between 1 April 2021 and 30 June as show -cause notices in terms of section 148A(b). Thereafter, the Revenue issued notices under section 148 PRT C page 53 of 112 of the new regime between July and August 2022. Invalidation of the section 148 notices issued under the new regime on the ground that they were issued beyond the time limit specified under the income Tax Act read with TOLA will completely frustrate the judicial exercise under taken by this Court in Ashish Agarwal (supra)" 16. In view of the aforesaid submission of the Department, Hon'ble Supreme Court in the said case of Rajeev Bansal....
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....olding that the proceedings in the instant case are time barred by limitation and therefore are invalid. Thus, the assessment made in pursuance to the said proceedings, in my considered view, is not sustainable in law being barred by limitation. The said assessment order, in fact. Is non- est in the eyes of law. Hence, the assessment, so made by the AO u/s 147 r.w.s.143(3) of the Act is hereby annulled. 19. Since the assessment has been annulled as above, all other grounds taken by the appellant remain of academic interest only. Therefore, they are not being adjudicated upon in this order. 20. In the result, appeal is allowed. 4. Learned CIT. DR submitted that in this case the notice was issued as per the direction of t....
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.... Of India and others vs. Rajeev Bansal. 6. The Hon'ble Supreme Court in the Special Leave Petition (civil) Diary No. 59625/2024of Income Tax Officer ward-1 (2) Jaipur v. R.K. Build Pvt. Ltd., its order dated 17-01-2025 dismissed the SLP arising from the similar decision rendered by the Hon'ble Rajasthan High Court the Hon'ble Supreme court held that " Delay Condoned. Having regard to the concession made by the petitioner- Department in the case of Union of India vs. Rajeev Bansal, Civil Appeal no.8629 of 2024 on 03-10-2024(2024SCC ON LINE 754) this special leave Petition would not survive for further consideration. Hence, the special Leave petition is dismissed. Pending application(s), if any shall stand disposed of". 7.In the c....