2026 (2) TMI 1411

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....essee is a partnership firm and engaged in the business of retail trade of fruits and vegetables. The assessee filed the return of income for AY 2017-18 on 28.09.2017 declaring total income of Rs. 8,34,984/. The return was processed under section 143(1) accepting the income returned. The assessing officer (AO) received information that the assessee has deposited cash during the demonetisation period to the tune of Rs. 38,43,207 and passed an order under section 148A(d) on 30.07.2022. The AO issued notice under section 148 on the same day. The AO completed the assessment by adding a sum of Rs. 37,22,307/- under section 68 of the Act. Aggrieved, the assessee filed the appeal before the CIT(A). Since the assessee did not respond....

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....ent year unless the Assessing Officer has in his possession books of account or other documents or evidence which reveal that the income chargeable to tax, represented in the form of- (i) an asset; (ii) expenditure in respect of a transaction or in relation to an event or occasion; or (iii) an entry or entries in the books of account, which has escaped assessment amounts to or is likely to amount to fifty lakh rupees or more: 6. From the plain reading of the above provisions, it is clear that the notice under section 148 cannot be issued beyond 3 years were the income escaping assessment is less than Rs. 50 lakhs. In other words the statutory requirement under section 149 is explicit and unambiguous, and r....

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.... (ii) The time limit of four years is now reduced to three years for all situations. The Revenue can issue notices under section 148 of the new regime only if three years or less have elapsed from the end of the relevant assessment year; (iii) the proviso to Section 149(1)(b) of the new regime stipulates that the Revenue can issue reassessment notices for past assessment years only if the time limit survives according to Section 149(1)(b) of the old regime, that is, six years from the end of the relevant assessment year; and (iv) all notices issued invoking the time limit under section 149(1)(b) of the old regime will have to be dropped if the income chargeable to tax which has escaped assessment is less than Rupees fifty lakhs. 7. In th....