2025 (12) TMI 198

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....r perusing the documents and the list of dates and events qua Paragraph No.28 from the decision of the Hon'ble Supreme Court in Union of India Vs. Ashish Agarwal, (2023) 1 SCC 617 and Paragraph Nos.112 and 114 from the decision of the Hon'ble Supreme Court in Union of India Vs. Rajeev Bansal, 2024 SCC Online SC 2993, it has been necessary to recall the order dated 04.11.2025. 3. For a fair disposal of the case, it will be therefore useful to refer to passage from Paragraph No.28 from Ashish Agarwal case (cited supra) and Paragraph Nos.112 and 114 from Rajeev Bansal case (cited supra). 4. For the sake of clarity, Paragraph No.28 from Ashish Agarwal case (cited supra) is reproduced below:- "28. In view of the above and for the ....

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.... (iii) The assessing officers shall thereafter pass orders in terms of section 148A(d) in respect of each of the concerned assessee's; Thereafter after following the procedure as required under section 148A may issue notice under section 148 (as substituted); (iv) All defences which may be available to the assesses including those available under section 149 of the IT Act and all rights and contentions which may be available to the concerned assessee's and Revenue under the Finance Act, 2021 and in law shall continue to be available." 5. In Rajeev Bansal case (cited supra), the above decision of the Hon'ble Supreme Court in Ashish Agarwal case (cited supra) was re-examined. The Hon'ble Supreme Court framed the following questio....

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....imit for issuance of a notice under section 148 of the new regime will end on August 18, 2022. 114. In view of the above discussion, we conclude that: (a) After April 1, 2021, the Income Tax Act has to be read along with the substituted provisions; (b) Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 will continue to apply to the Income-tax Act after April 1, 2021 if any action or proceeding specified under the substituted provisions of the Income Tax Act falls for completion between March 20, 2020 and March 31, 2021; (c) Section 3(1) of the Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 overrides section 149 of the Income-tax Act only ....

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....erms of the directions issued by this court in Union of India Vs. Ashish Agarwal [(2022) 444 ITR 1 (SC); (2023) 1 SCC 617], and the period of two weeks allowed 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." 8. Applying the above ratio, particularly, in the light of the limitation for issuance of Notice under Section 148 of the Income Tax Act, 1961 (hereinafter referr....

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....022 Notice under Section 148 of the Act (new regime) 28.07.2022 11. Applying the above ratio to the facts of the case it is clear that the Notice that was issued on 30.06.2021 under Section 148 of the Act under the old regime as it stood till 31.03.2021 has to be treated as a Notice issued under Section 148A(b) of the Act in terms of Ashish Agarwal case (cited supra) and Rajeev Bansal case (cited supra). 12. A Notice under Section 148 of the Act was required to be issued for reassessment within the time limit surviving under the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) [TOLA] Act, 2020. For the Assessment Year 2016-2017, since the income escaping assessment is less than Rs.50,00,000/-, the Notice ....