TaxTMI 
TaxTMI 
2026 (5) TMI 464
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....he assessment year 2014-15. 2. In this appeal, the assessee has raised the grounds, inter alia, challenging the initiation of reassessment proceedings under section 147 of the Act. Since this is a jurisdictional issue, which goes to the root of the matter, we are considering the same at the outset. During the hearing, the learned Authorised Representative ("learned AR"), at the outset, submitted that the notice issued under section 148 of the Act in the present case is beyond the limitation period specified under section 149(1) of the Act as per the decision of the Hon'ble Supreme Court in Union of India v/s Rajeev Bansal, reported in (2024) 469 ITR 46 (SC), and thus, the reassessment order passed under section 147 r.w. section 144B of t....
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.... 147 r.w. section 144B of the Act, disagreed with the submissions of the assessee and made an addition of Rs. 2,36,97,035 under section 68 of the Act. 6. The assessee, in its 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. The learned CIT(A), vide impugned order, dismissed the assessee's appeal on both jurisdictional and merits grounds. Being aggrieved, the assessee is in appeal before us. 7. 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 directe....
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....ed time allowed to the assessee." Resultantly, the entire time allowed to the assessee to respond to the show cause notice has to be excluded for computing the period of limitation. In Ashish Agarwal (supra), this Court provided two weeks to the assesses to reply to the show cause notices. This period of two weeks is also liable to be excluded from the computation of limitation given the third proviso to Section 149. Hence, the total time that is excluded for computation of limitation for the deemed notices is: (i) the time during which the show cause notices were effectively stayed, that is, from the date of issuance of the deemed notice between 1 April 2021 and 30 June 2021 till the supply of relevant information or material by the assess....
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....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 surviving under the Income Tax Act read with TOLA will be available to the Revenue to complete the remaining proceedings in furtherance of the deemed notices, including issuance of reassessment notices under Section 148 of the new regime. The surviving or balance time limit can be calculated by computing the number of days between the date of issuance of the deemed notice and 30 June 2021." 9. Thus, the Hon'ble Supreme Court held that the surviving time under the Act read with the TOLA will be available to the Revenue to co....
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.... is relevant to note the following dates: - S. No. Particulars Dates 1 First Notice issued u/s 148 22/06/2021 2 Extended Limitation as per the TOLA 30/06/2021 3 Surviving Time 9 Days 4 Notice u/s 148A(b) 26/05/2022 5 Time granted to the assessee to reply 13/06/2022 6 Assessee's Reply No reply filed 6 Last date for issuance of notice under section 148 considering the surviving time 22/06/2022 6 Order u/s 148A(d) 27/07/2022 7 Second Notice u/s 148 27/07/2022 11. 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 9 days to issue notice under sect....