TaxTMI 
TaxTMI 
2025 (8) TMI 1779
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....st the returned income of Rs. 40,47,080/- for the impugned assessment year 2015-16, on the facts and circumstances of the case. 3. The learned CIT(A) ought to have directed the learned assessing officer to provide the appellant an opportunity to cross examine the person from whom statement was recorded and relied by the learned assessing officer and consequently the assessment order is bad in law on the facts and circumstances of the case. 4. The learned CIT(A) has failed to appreciate that the assessment ought to have been initiated under section 153C of the Act when the assessing officer clearly avers that reopening is made on the basis of materials seized during search proceedings of a third party, on the facts and circumstances of the case. 5. Grounds on addition made u/s 68 Rs. 6,09,96,000/-: a. The learned Assessing officer is not justified in law in making an addition of Rs. 6,09,96,000/- under section 68 of the Act on the facts and circumstances of the case. The assessee has filled additional grounds of appeal which are as under vide dated 17.03.2025 b. The authorities below have failed to appreciate that the appellant h....
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.... c. The order of assessment passed on 25.05.2023 is barred by limitation as the same ought to have been passed on or before 31.03.2023, on the facts and circumstances of the case. d. The order of assessment passed by the learned assessing officer under Section 147 r.w.s 144 of the Act is bad in law since the mandatory conditions as envisaged in the Act to assume jurisdiction under section 148 did not exist or having not been complied with and consequently, the reassessment requires to be cancelled on the facts and circumstances of the case. 3. Grounds on reopening based on 148 notice dt: 29.07.2022:- a. The notice issued under section 148 of the Act, dt: 29.07.2022 is bad in law. b. The notice issued under section 148 of the Act is invalid as it does not bear Document Identification Number ("DIN") on its body, on the facts and circumstances of the case. c. Without foregoing the contention that TOLA is not applicable for AY 2015-16, the 148 notice dt: 29.07.2022 is barred by limitation and consequently has to be disregarded for the assumption of jurisdiction to pass assessment order for the impugned assessment year on the facts and cir....
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....atutory notices were issued to the assessee and part compliances were made and finally the reassessment order was passed u/s 147 r.w.s 144B of the Act dated 25.05.2023 by making addition of Rs. 6,09,96,000/- as unexplained cash credit u/s 68 of the Act as source were not explained and further addition of Rs. 6,09,960/- was made u/s 69C of the Act on account of unexplained expenditure incurred to obtain such unexplained cash credit. 5. Against such order, the assessee preferred the appeal before the CIT(A) who vide impugned order dated 10.01.2025 dismissed the appeal of the assessee against which the assessee is in appeal before Income Tax Appellate Tribunal 6. During the course of hearing, the Ld. AR of the assessee submitted that the impugned year is Asst. Year 2015-16, for which notice u/s 148 of the Act was originally issued on 29.06.2021 and, thereafter, following the judgment of Hon'ble Supreme Court in the case of Ashish Agarwal (supra), the fresh notice u/s 148 of the Ace was issued on 29.07.2022 following the procedure for the issue of notice as per the Instruction No. 01/2022 dated 11.05.2022 pursuant to the judgment of Hon'ble Apex Court in the case of UOI vs As....
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.... of Ashish Agarwal (supra) and finally the notice u/s 148 was issued on 29/07/2022. The Ld. Additional Solicitor General of India in the case of Rajiv Bansal (supra) has made categorical statement at Bar before the Hon'ble Supreme Court that all the notices issued for Asst. Year 2015-16 on or after 1st April 2021 will be dropped, however, in the instant case, no such action was taken and re-assessment order was framed in the case of the assessee on the basis of the notice issued u/s 148 of the Act on 29/07/2022. The relevant extract of the assertion made by the Ld. Additional Solicitor General of India before the Hon'ble Supreme Court as contained in para 19(f) of the said order are reproduced as under: "19. Mr. N. Venkataraman, learned Additional Solicitor General of India, made the following submissions on behalf of the Revenue: a. Parliament enacted TOLA as a free-standing legislation to provide relief and relaxation to both the assesses and the Revenue during the time of COVID-19. TOLA seeks to relax actions and proceedings that could not be completed or complied with within the original time limits specified under the Income Tax Act; b. Section 149 of....
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....021, is now part of the Income Tax Act. Therefore, TOLA continues to apply 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 2021 as show-cause notices in terms of Section 148A(b). Thereafter, the Revenue issued notices under Section 148 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 undertaken by this Court in Ashish Agarwal (supra). 11. Looking to the facts and considering the assessment year involved is 2015 16, notice issued in the case of originally on 29/06/2021 and later on 29/07/2022 which both the dates have fallen on or after 1st April, 2021, therefore, both the notice deserves to be dropped in view of the admission made by the Revenue before the Hon'ble Supreme Court. Further, for Assessment Year 2015-16, no notice u/s 148 of the Act could be issued after the expiring of six years from the end of the relevant assessment year w....
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....Court declines to entertain the present writ petition, but leaves it open to the Petitioner to raise all grounds available to the Petitioner in accordance with law including the grounds urged in the present petition at the appropriate stage as explained by the Court in those orders. 3. The writ petition is disposed of in the above terms." 3. We heard Mr. Saswat Kumar Acharya, the learned counsel appearing for the appellants (assessee) and Mr. Chandrashekhar, the learned counsel appearing for the revenue. 4. The learned counsel appearing for the revenue with his usual fairness invited the attention of this Court to a three judge bench decision of this Court in Union of India and ors. v. Rajeev Bansal, reported in 2024 SCC OnLine SC 2693, more particularly, paragraph 19(f) which reads thus:- "19. (f) The Revenue concedes that for the assessment year 2015-2016, all notices issued on or after April 1, 2021 will have to be dropped as they will not fall for completion during the period prescribed under the Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020." 5. As the revenue made a concession in the aforesaid d....