2025 (2) TMI 1287

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....ice u/s. 148 of the Act was issued on 29.07.2022. Assessee filed return of income on 10.08.2022 in response thereof, declaring same total income of Rs. 2,64,520/- as declared earlier. The assessing officer issued draft assessment order dated 29.05.2023 u/s. 144C of the Act, proposing an assessment of total income of Rs. 80,24,216/-. Aggrieved with the proposed variation, the appellant assessee filed objections before DRP-2 Mumbai on 28.06.2023. the action of assessing officer in terms of rejection of exempt gains and assessment of sales credits u/s. 68 and commission expenditure u/s. 69C of the Act was sustained and assessee's objections were rejected. The assessing officer passed assessment order dated 24.03.2024 u/s. 147 r.w.s 144C(13) of the Act, assessing the total income of the assessee at Rs. 80,24,216/- rounded of to Rs. 80,24,220/- as was proposed in draft assessment order. 3. Assessee has raised the following grounds under appeal: Original Grounds " 1. The Learned A.O has erred in making the additions of sale proceeds from sale of script Goenka Business and Financial Ltd. amounting to Rs. 75,33,686/- with respect to section 68 of the Income Tax Act, 1961 in ....

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....ion of the Supreme Court to treat it as deemed show cause notice under Section 148A(b) was not applicable at all. 5. On the facts and circumstances of the case and in law, the Assessing Officer ought to have appreciated that the appellant was not a party to the writ petition filed before any High Court challenging the notice issued under Section 148 on 26-6-2021 without complying with the requirements of the amended provisions and, therefore, the directions issued by the Supreme Court in the case of UOI vs. Ashish Agarwal [2022] 138 taxmann.com 64 (SC) under Article 142 of the Constitution of India cannot be applied to the appellant's case." Additional Grounds dated 23.11.2023. "6. On the facts and circumstances of the case and in law the notice under section 148 of the Act dated 29-07-2022 was barred by limitation since it was beyond the surviving timelimit as held by the Hon'ble Supreme Court in the Union of India & Ors. Vs Rajeev Bansal." 4. Purused the records. Heard learned representative for the appellant assessee and learned DR for the respondent revenue. 5. The assessee has drawn the attention of the bench towards additional ground no. 2 raise....

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....ee years have elapsed from the end of the relevant assessment year Principal Chief Commissioner or Principal Director General or Chief Commissioner or Director General. 74. The above table indicates that the specified authority is directly co-related to the time when the notice is issued. This plays out as follows under the old regime: (i) If income escaping assessment was less than Rupees one lakh. (a) a reassessment notice could be issued under section 148 within four years after obtaining the approval of the Joint Commissioner; and (b) no notice could be issued after the expiry of four years, and (ii) If income escaping was more than Rupees one lakh; (a) a reassessment notice could be issued within four years after obtaining the approval of the Joint Commissioner; and (b) after four years but within six years after obtaining the approval of the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner. 75. After 1 April 2021, the new regime has specified different authorities for granting sanctions under Section 151. The new regime is beneficial to the assessee because it specifies a higher level of author....

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....falls between 20 March 2020 and 31 March 2021. then the specified authority under Section 151(i) has an extended time till 30 June 2021 to grant approval. In the case of Section 151 of the old regime, the test is. if the time limit of four years from the end of an assessment year falls between 20 March 2020 and 31 March 2021, then the specified authority under Section 151 (2) has time till 31 March 2021 to grant approval. The time limit for Section 151 of the old regime expires on 31 March 2021 because the new regime comes into effect on 1 April 2021. 78. For example, the three year time limit for assessment year 2017-2018 falls for completion on 31 March 2021. It falls during the time period of 20 March 2020 and 31 March 2021, contemplated under Section 3(1) of TOLA. Resultantly, the authority specified under Section 151(i) of the new regime can grant sanction till 30 June 2021. 79. Under Finance Act 2021, the assessing officer was required to obtain prior approval or sanction of the specified authorities at four stages: a. Section 148A(a)- to conduct any enquiry, if required, with respect to the information which suggests that the income chargeable to t....