TaxTMI 
TaxTMI 
2026 (5) TMI 602
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.... 2.1 The Id. CIT(A), has grievously erred in law and or on facts in not appreciating that there could not be compliance to the notices claimed to be issued mainly on account of failure of the tax consultant of Ahmedabad whose office failed to respond to the notices on his email id and the appellant residing at Mumbai, he used to inform the tax consultant. Thus, there was a sufficient cause for failure to comply with the notices claimed to be issued by NFAC. 3.1 The Id.CIT(A) has grievously erred in law and or on facts in upholding that there was a transfer of the residential house u/s. 2(47) of the Act at the time of old flat given for re-development and thereby making addition of Rs. 17,38,500/- u/s. 56(2)(vii)(b). 3.2 That the in the facts and circumstances of the Id. CTT(A), ought not to have upheld there was a transfer of the residential house u/s. 2(47) of the Act at the time of old flat given for re-development and thereby making addition of Rs. 17,38,500/-u/s 56(2)(vii)(b). 4.1 Both the lower authorities have failed to appreciate that the proceedings u/s. 147 and the notice u/s. 148, both were illegal as per the decision of the Hon'ble Ape....
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....appeal within time. The ld. AR further placed his reliance on certain Judicial Pronouncements. On a thoughtful consideration of aforesaid submissions by the assessee, following the directions of Hon'ble Apex Court to deal with the matter of delay with a liberal and justice-oriented approach, we find it appropriate to condone the delay in the present matter. 4. Coming to the facts of the present matter, the assessee has filed his return of income on 12.07.2017, declaring the total income at Nil. Further, as per information received from the DIT(I&CI), Mumbai, the assessee had purchased the immovable property during the year under consideration and the stamp duty value of the said property was more than that of the agreement value. Consequently, reopening assessment u/s. 147 initiated. The ld. AO invoked the provisions of section 56(2)(vii)(b) of the Act and has made an addition of Rs. 17,38,500/-. 5. Being aggrieved the matter is carried before the ld. CIT(A), wherein the assessee remained non-compliant on all the opportunities afforded by the ld. CIT(A), therefore the appeal of assessee has been dismissed in limine after small discussion to the findings of ld. AO. 6. The a....
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....ction in Ashish Agarwal (supra) was that it stopped the clock of limitation with effect from the date of issuance of Section 148 notices under the old regime [which is also the date of issuance of the deemed notices]. As discussed in the preceding segments of this judgment, the period from the date of the issuance of the deemed notices 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) has to be excluded from the computation of the period of limitation. Moreover, the period of two weeks granted to the assesses to reply to the show cause notices must also be excluded in terms of the third proviso to Section 149. 111. The clock started ticking for the Revenue only after it received the response of the assesses to the show causes notices. After the receipt of the reply, the assessing officer had to perform the following responsibilities: (i) consider the reply of the assessee under Section 149A(c); (ii) take a decision under Section 149A(d) based on the available material and the reply of the assessee; and (iii) issue a notice under Section 148 if it was a fit....
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....notices, ought to be issued within the time limit surviving under the Income Tax Act read with TOLA. A reassessment notice issued beyond the surviving time limit will be time-barred. G. Conclusions 114. In view of the above discussion, we conclude that: a. After 1 April 2021, the Income Tax Act has to be read along with the substituted provisions; b. TOLA will continue to apply to the Income Tax Act after 1 April 2021 if any action or proceeding specified under the substituted provisions of the Income Tax Act falls for completion between 20 March 2020 and 31 March 2021; c. Section 3(1) of TOLA overrides Section 149 of the Income Tax Act only to the extent of relaxing the time limit for issuance of a reassessment notice under Section 148; d. TOLA will extend the time limit for the grant of sanction by the authority specified under Section 151. The test to determine whether TOLA will apply to Section 151 of the new regime is this: if the time limit of three years from the end of an assessment year falls between 20 March 2020 and 31 March, then the specified authority under Section 151(i) has extended time till 30 June 2021 to gran....