TaxTMI 
TaxTMI 
TaxTMI 
2026 (3) TMI 235
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....ued by Respondent No. 1 seeking to reopen the Petitioner's assessment for the A.Y. 2014-15, the order passed under Section 148A(d) of the IT Act dated 30th July 2022, the order disposing of objections dated 13th January 2026, and the consequential Assessment Order dated 29th January 2026 passed under Section 147 read with Section 144B of the IT Act for the A.Y. 2014-15. 3. The Petitioner had filed its original Return of Income on 29th November 2014 declaring a total income of Rs. 5,47,060/-. The case was selected for scrutiny and an Assessment Order under Section 143(3) was passed on 19th December 2016. 4. Subsequently, the assessment of the Petitioner for the year under consideration, i.e. A.Y. 2014-15, was reopened vide Notice dated....
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....th July 2022 and issued the impugned notice under Section 148 on the same date, i.e., 30th July 2022. In the order disposing of the objections under Section 148A(d) of the IT Act, it has been accepted that the jurisdiction was transferred pursuant to the objection raised by the Petitioner. 8. The entire reassessment proceedings were challenged before this Court in Writ Petition No. 5737 of 2023. This Court, vide its order dated 1st March 2024, quashed the said notice, holding it to be barred by limitation. It appears that aggrieved by the said order, the Respondents preferred a Special Leave Petition before the Hon'ble Supreme Court. The Hon'ble Supreme Court, vide its order dated 24th January 2025, set aside the order of this Court with....
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....nt Order under Section 147 read with Section 144B of the IT Act on 29th January 2026, confirming the addition of Rs. 50,82,540/- to the Petitioner's income. A notice of demand was also raised on the same date. 14. In this factual backdrop, Mr. Gandhi, the learned counsel appearing on behalf of the Petitioner submitted as under:- (a) The proceedings are time-barred as per the decision of the Hon'ble Supreme Court in Rajeev Bansal (supra). The original notice under Section 148 was issued on 29th June 2021. The time limit under TOLA expired on 30th June 2021. Thus, the "surviving period" available to the Revenue was only 2 days. (b) The Petitioner replied to the show cause notice on 1st June 2022. Applying the ratio of Raj....
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....6. We have heard the learned counsel for the parties. The primary controversy revolves around the limitation period for issuing the notice under Section 148 of the Act in light of the judgment in Rajeev Bansal (supra). The Hon'ble Supreme Court has categorically held that the Revenue must issue the notice under Section 148 within the "surviving period" available under the IT Act read with TOLA. Further, the Hon'ble Supreme Court has also specified the method to compute the surviving period. The entire working of the surviving period hinges on the initial time frames given in the judgment of the Hon'ble Supreme Court in case of Ashish Agarwal (supra). 18. We find merit in the contention of the Petitioner regarding the second notice dated ....
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.... computing the surviving period. 19. Regarding the Respondent's reliance on the fourth proviso to Section 148A for a further extension of 7 days, we are unable to accept this submission. The Hon'ble Supreme Court in Rajeev Bansal (supra) have duly considered the proviso and statutory extensions available under the IT Act including the special extension granted by TOLA. Having considered the same, the Court derived a specific mechanism to calculate the "surviving period". The Court has categorically held that the limitation period has to be counted on expiry of 6 weeks period (4 weeks for the Department to provide material and 2 weeks for the assessees to file reply). No further extension based on the fourth proviso can be granted over an....
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....30th July 2022, which is patently beyond the limitation period prescribed by the Hon'ble Supreme Court. The issuance of the second notice on 26th July 2022 and time granted in the said notice upto 28th July 2022 cannot save the proceedings. 22. The Writ Petition accordingly succeeds. Since, we have allowed the Petition on the ground of limitation, we are not inclined to delve into the issue of jurisdiction or any other issues, at this stage. 23. In view of the foregoing discussion, the Writ Petition is allowed in terms of prayer clauses (a) which reads thus:- "(a) that this Hon'ble Court may be pleased to issue a Writ of Certiorari or a Writ in the nature of Certiorari or any other appropriate Writ, Order of direction, callin....