2025 (12) TMI 480

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....s. 9,00,890/-. The return was processed u/s. 143(1) of the Act. Thereafter the assessment was reopened on the ground that the assessee has traded in scrips and transactions to the tune of Rs. 3.85 crores which are penny stock. The assessing officer completed the reassessment making addition of Rs. 115.22 crores and the computed the tax u/s. 115BBE of the Act and demanded tax thereon. 3. Aggrieved against the reassessment order, assessee filed an appeal before Ld. CIT(A) who partly allowed the appeal and partly confirmed the addition made by the assessing officer. 4. Aggrieved against the appellate order, both the assessee and Revenue are in appeal before us raising the following Grounds of Appeal: Assessee's Appeal: 1. That the Ld. CIT(A) erred in law and in the facts of the case in confirming the order of the AO in reopening assessment u/s 147 of the act. 2. That the Ld. CIT(A) erred in law and in the facts of the case in confirming the order of the AO in making addition of Rs. 14,22,48,852/- u/s 69C of the act. 3. That the Ld. CIT(A) erred in law and in the facts of the case in confirming the order of the AO in making addition of Rs. ....

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....d to be quashed. 6. We have heard rival submissions at length and perused the materials available on record. The validity of issuance of 148 notice during the extended time period as per Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance 2020 (hereinafter referred as TOLA). In view of the Apex Court judgment in the case of Union of India Vs. Ashish Agrawal reported in (2022) 444 ITR 1 (SC) wherein the notice issued was to be treated as notice u/s. 148A(b) of the Act which has come into the statute with effect from 01-04-2021. 6.1. The Hon'ble Supreme Court in the later judgment in the case of Union of India Vs. Rajeev Bansal reported in (2024) 469 ITR 46 laid down the law to consider such notice as valid notice or invalid notice depending upon the surviving time left date of issuance of the notice u/s. 148 of the Act r.w.s. 3(1) of TOLA up to 30-06-2021 and the issuance of notice u/s.148 pursuant to the direction issued by the Apex Court in the case of Ashish Agarwal. 6.2. The above Supreme Court Judgments were considered by the Jurisdictional High Court in the case of Dhanraj Govindram Kella Vs. ITO vide judgment dated 08-07-2025 in Civil Application....

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....s. 148A(b) 6387/2023 2013-2014 17.06.2021 13 26.05.2022 5688/2023 2014-2015 09.06.2021 21 23.05.2022 22260/2022 2016-2017 30.06.2021 1 23.05.2022 996/2023 2017-2018 30.06.2021 1 24.05.2022   SCA NO. Due date of filing reply Date of reply :- Date of order under section 148A(d) and notice under section 148 :- Last date for issuance of notice under section 148 as per surviving time: 6387/2023 09.06.2022 04.06,2022 29.07.2022 22.06.2022 5688/2023 06.06.2022 - 27.07,2022 27.06.2022 22260/2022 07.06.2022 06.07.2022 30.07.2022 14.06.2022 996/2023 11.06.2022 10.06.2022 19.07.2022 18.06.2022 68. It is apparent from the above details that impugned notice under section 148 of the Act is issued beyond the period of 'surviving time' as per the direction of Hon'ble Apex Court in case Rajeev of Bansal (supra)and therefore, such notices would be invalid notices. 69. The impugned notices issued under section 148 of the Act are accordingly quashed and set aside being invalid having been issued beyond the 'surviving time'.....

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....ish Agarwal [(2022) 444 ITR 1 (SC); (2023) 1 SCC 617.], and the period of two weeks allowed to the assessees 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." 10. In view of foregoing reasons, impugned notice dated 30.08.2022 is hereby quashed and set aside and all consequential proceedings are also quashed and set aside." 6.4. Following the above judicial precedents, for adjudication of the legal ground following dates are as follows: Original notice u/s 148 issued on 29.06.2021 No. of surviving days 2 Date of providing information by notice u/s 148 A(b) 30.05.2022 Due date of furnishing reply by Appellant 20.06.2022 Actual date of reply 24.06.2022 Order u/s 148A(d) as also notice u/s 148 30.08.2022 Last date for issuing notice u/s 148 as per proviso to s. 149 27.06,2022 7.....