TaxTMI 
TaxTMI 
2026 (5) TMI 326
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.... year 2013-14 is considered as a lead case, and the decision rendered therein shall apply mutatis mutandis to the other appeal of the assessee before us. 3. In its appeal for the assessment year 2013-14, the assessee has raised the following grounds: - "Being aggrieved by the order dated 25.11.2025 passed by the Commissioner of Income-lax (Appeals), National Faceless Appeal Centre, Delhi ("CIT(A)"), the Appellant begs to prefer the present appeal on the following grounds which are without prejudice to each other: 1. That in the facts and circumstances of the case and in law, the CIT(A) erred in upholding the addition of Rs. 58,76,810/- made by the Faceless Assessing Officer under Section 69A of the Act, on the ground that the said cash deposits made by the Appellant in its own bank account remained unexplained. 2. That in the facts and circumstances of the case and in law, the CIT(A) erred in upholding the validity of reassessment proceedings, when the same were illegal, invalid, void ab initio and without jurisdiction. 3. That in the facts and circumstances of the case and in law, the notice dated 18.05.2022 deemed to be the show-cause notice....
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....the facts and circumstances of the case and in law, the CIT(A) erred in sustaining the addition made by the Faceless Assessing Officer despite the Appellant having established the genuineness and source of the deposits in its bank account. 10. That in the facts and circumstances of the case and in law, the CIT(A) failed to appreciate that where the Appellant has opted for presumptive taxation under Section 44AD, the Appellant is not obligated to maintain books in the same manner as a regular assessee, and therefore adverse inference merely basis alleged non-maintenance/non-acceptance of books is unwarranted and the addition is unsustainable. 11. That in the facts and circumstances of the case and in law, the CIT(A) erred in passing the impugned order in violation of the principles of natural justice to the extent that no opportunity for a hearing via video conferencing was granted to the Appellant, despite a specific request made by the Appellant in this regard." 4. In both appeals, the assessee has challenged the validity of the reopening of the assessment under section 147 of the Act and has also raised the grounds on merits, challenging the addition made by ....
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.... addition of Rs. 58,76,810. The assessee in his appeal before the learned CIT(A), inter alia, challenged the proceedings initiated under section 147 of the Act on the basis that the notice issued under section 148 of the Act is barred by limitation. However, the learned CIT(A), vide impugned order, dismissed the ground raised by the assessee challenging the proceedings initiated under section 147 of the Act. The learned CIT(A) also upheld the addition made by the AO on merits. Being aggrieved, the assessee is in appeal before us. 9. We have considered the submissions of both sides and perused the material available on record. We find that the Hon'ble Supreme Court in paragraphs 106 and 107 of its decision in Rajeev Bansal (supra), observed as follows: - "106. In Ashish Agarwal (supra), this Court directed the assessing officers to provide relevant information and materials relied upon by the Revenue to the assesses within thirty days from the date of the judgment. A show cause notice is effectively issued in terms of Section 148A(b) only if it is supplied along with the relevant information and material by the assessing officer. Due to the legal fiction, the assessing o....
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....further period of two weeks allowed to the assessee to respond to the show cause notice should be excluded. We find that while examining the validity of notices issued from 01/04/2021 to 30/06/2021 under the old regime, the Hon'ble Supreme Court in Rajeev Bansal (supra), analysing the interplay of Ashish Agarwal (supra) with the TOLA, in paragraph 108 of its judgment observed as follows: - "108. The Income Tax Act read with TOLA extended the time limit for issuing reassessment notices under Section 148, which fell for completion from 20 March 2020 to 31 March 2021, till 30 June 2021. All the reassessment notices under challenge in the present appeals were issued from 1 April 2021 to 30 June 2021 under the old regime. Ashish Agarwal (supra) deemed these reassessment notices under the old regime as show cause notices under the new regime with effect from the date of issuance of the reassessment notices. The effect of creating the legal fiction is that this Court has to imagine as real all the consequences and incidents that will inevitably flow from the fiction. Therefore, the logical effect of the creation of the legal fiction by Ashish Agarwal (supra) is that the time surv....
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....Last date for issuance of notice under section 148 considering the surviving time 23/06/2022 8. Last date for issuance of notice under section 148, considering the extension of 7 days as per 4th proviso to section 149 29/06/2022 9. Order u/s 148A(d) 22/07/2022 10. Second Notice u/s 148 25/07/2022 13. Therefore, computing the surviving/balance time limit, as per the decision of the Hon'ble Supreme Court in Rajeev Bansal (supra), we find that the Revenue had only 1 day to issue notice under section 148 of the Act of the new regime in the present case, i.e. till 23/06/2022, after receipt of response from the assessee on 22/06/2022 to the show cause notice issued under section 148A(b) of the Act. However, undisputedly, in the present case, the notice under section 148 of the Act was issued on 25/07/2022, i.e., after the surviving/balance time period as per the decision of the Hon'ble Supreme Court in Rajeev Bansal (supra). 14. We find that even if the benefit of the fourth proviso to section 149 of the Act is granted to the Revenue, since the remaining period in the present case, after the exclusion of time period as provided in the third proviso to ....
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....and are therefore without jurisdiction in view of Section 151A of the Act read with e-Assessment of Income Escaping Assessment Scheme, 2022. 4. That in the facts and circumstances of the case and in law, the CIT(A) erred in upholding the re-assessment which has been concluded pursuant to the manually issued notice under Section 148 of the Act without any DIN, as the same is contrary to CBDT Circular No. 19 dated 14.08.2019. 5. That in the facts and circumstances of the case and in law, the CIT(A) erred in holding the re-opening and the re-assessment proceedings to be within limitation, when infact the same are barred by limitation in terms of the first proviso to Section 149(1) (as amended by Finance Act, 2021) read with Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020, and much after the surviving period as also held in Hitesh Ramniklal Shah (2025] 180 taxmann.com 642 (Bombay). 6. That in the facts and circumstances of the case and in law, the Jurisdictional Assessing Officer erred in issuing the notice dated 25.07.2022 under Section 148 of the Act basis the "information", being information requiring action in consequenc....
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.... Particulars Dates 1. First Notice issued u/s 148 30/06/2021 2. Extended Limitation as per the TOLA 30/06/2021 3. Surviving Time 1 Days 4. Notice u/s 148A(b) 19/05/2022 5. Time granted to the assessee to reply 2 weeks 6. Assessee's Reply 22/06/2022 7. Last date for issuance of notice under section 148 considering the surviving time 23/06/2022 8. Last date for issuance of notice under section 148, considering the extension of 7 days as per 4th proviso to section 149 29/06/2022 9. Order u/s 148A(d) 22/07/2022 10. Second Notice u/s 148 25/07/2022 21. Therefore, computing the surviving/balance time limit, as per the decision of the Hon'ble Supreme Court in Rajeev Bansal (supra), we find that similar to the assessment year 2013-14, in this year also the Revenue had only 1 days to issue notice under section 148 of the Act of the new regime, i.e. till 23/06/2022, after receipt of the response from the assessee on 22/06/2022 to the show cause notice issued under section 148A(b) of the Act. However, undisputedly, in the present case, the notice under section 148 of the Act was issued on 25/07/202....