TaxTMI 
TaxTMI 
2025 (10) TMI 1407
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....ited in the affidavits for condonation of delay, we find that the reasons are valid and consequently, the delays in filing both the appeals are hereby condoned and we proceed to dispose of the appeals on merits. 3. ITA No. 2197/Kol/2024 for Assessment Year 2013-14 - For the sake of convenience and narrations of facts, this appeal is taken as lead case. 4. At the time of argument, the ld. counsel appeared on behalf of the assessee raised a legal ground by filing an application under Rule 27 of the ITAT Rules 1963 by submitting that notice u/s 148 was time barred as was issued beyond the surviving period as defined by the Apex Court Decision passed in Union of India v. Rajeev Bansal [2024] 167 taxmann.com 70 (SC). The ld. AR prayed that his application under Rule 27 should be disposed of as the issue goes to the root of the case of the department. The ld. DR did not raise any objection in hearing this issue on legal ground filed under Rule 27 of the ITAT Rules. The ld. AR placed reliance to an order passed by the Coordinate Bench of this Tribunal in ITA No. 261/Kol/2025 in the case of Sanjay Kumar Bhutra vs. ITO dated 18.09.2025. 4.1 In the present case, the case w....
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....ant and same is reproduced hereunder:- 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 assessees 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 the new regime provides three crucial benefits to the assesses: (i) the four-year time limit for all situations has been reduced to three years, (ii) the first proviso to Section 149 ensures that re-assessment for previous assessment years cannot be undertaken beyond six years, and (iii) the monetary threshold of Rupees fifty lakhs will apply to the re- assessment for previous assessment years, c. The relaxations provided under Section 3(1) of TOLA apply "notwithstanding anything contained in the specified Act." Section 3(1), therefore, overrides the time limits for issuing a notice under Section 148 read with Section 149 of the Income Tax Act; ....
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.... Hon'ble Supreme Court in para 19 (f) wherein the Revenue concedes that for the A.Y.2015- 16, all notices issued on or after 1 April 2021 will have to be dropped as they will not fall for completion during the period prescribed under TOLA. Further, for the A.Y.2013-14 and 2014- 15 Revenue has accepted that the expiry of the limitation (TOLA) will expire on 30/06/2021. 10. In para 54 the Hon'ble Supreme Court has explained the extension of TOLA time limit till 31/06/2021 in the following manner:- "54. The proviso to Section 149(1)(b) of the new regime uses the expression "beyond the time limit specified under the provisions of clause (b) of sub- section (1) of this section, as they stood immediately before the commencement of the Finance Act, 2021." Thus, the proviso specifically refers to the time limits specified under Section 149(1)(b) of the old regime. The Revenue accepts that without application of TOLA, the time limit for issuance of reassessment notices after 1 April 2021 expires for assessment years 2013-2014, 2014-2015, 2015-2016, 2016-2017, and 2017- 2018 in the following manner: (i) for the assessment years 2013-2014 and 2014-2....
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....ner or Commissioner Section 151(i) of the Three years or less Principal new regime than three years from Commissioner or the end of the relevant Principal Director or assessment year Commissioner or Director Section 151(ii) of the More than three years Principal Chief new regime have elapsed from the Commissioner or end of the relevant Principal Director assessment year General or Chief Commissioner or Director General 74. The above table indicates that the specified authority is directly co-related to the time when the notice is issued This plays out as follows under the old regime (i) If income escaping assessment was less than Rupees one lakh (a) a reassessment notice could be issued under Section 148 within four years after obtaining the approval of the Joint Commissioner, and (b) no notice could be issued after the expiry of four years, and (ii) If income escaping was more than Rupees one lakh (a) a reassessment notice could be issued within four years after obtaining the approval of the Joint Commissioner: and (b) after four years but within six years after obtaining the approval of the Principal Chief Commissioner or Chief Commiss....
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....arwal judgment, after 01/04/2021 the prior approval must be obtained from the competent authorities specified u/s.151 of the new regime and then their Lordships have clearly held in para 76 that the non-compliance by the AO to the restricted time limit prescribed u/s.151 affects the jurisdiction to issue a notice u/s.148. 13. In para 94 the Hon'ble Supreme Court has mentioned about the three important periods to see the limitation which are as under:- "4. Before we proceed, we need to bear in mind three important periods: i. The period up to 30 June 2021 - this period is covered by the provisions of the Income Tax Act read with TOLA; ii. The period from 1 July 2021 to 3 May 2022 - the period before the decision of this Court in Ashish Agarwal (supra); and iii. The period after 4 May 2022 - the period after the decision of this Court in Ashish Agarwal (supra). This period is covered by the directions issued by PART F this Court in Ashish Agarwal (supra) and the provisions of the Income Tax Act read with TOLA. a. Third proviso to Section 149 95. The third proviso to Section 149 reads thus: "Provided also that for the ....
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....ed notice between 1 April 2021 and 30 June 2021 till the supply of relevant information and material by the assessing officers to the assesses in terms of the directions issued by this Court in Ashish Agarwal (supra), and the period of two weeks allowed to the assesses to respond to the show cause notices; and h. The assessing officers were required to issue the reassessment notice under Section 148 of the new regime within the time limit surviving under the Income Tax Act read with TOLA. All notices issued beyond the surviving period are time barred and liable to be set aside; 15. Thus, from the aforesaid judgment, it is clear that firstly, after 01/04/2021, the Income Tax Act has to be read alongwith substituted provisions of TOLA will continue to apply after 01/04/2021 if any action or proceedings provided under the substituted provision of the Income Tax falls for completion between 21/03/2020 to 31/03/2021 and Section 3(1), overrides Section 149 of the Income Tax Act; Similarly, TOLA will extend the time limit for grant of sanction by the authorities specified u/s.151 and if the time limit of three years falls between 21/03/2021 and 31/03/2021 then the specified autho....