TaxTMI 
TaxTMI 
2025 (9) TMI 1790
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....n 07.11.2024. 3. Contrary to that, the ld. DR supports the impugned order thereby submitting that the ld. AR failed to file any written submission before the ld. CIT(A), hence the appeal of the assessee has been dismissed by the ld. CIT(A). 4. Since the ld. counsel for the assessee took the legal ground hence, we are going to decide this legal ground only. In the present case, the case was reopened for the assessment year 2013-14 by the jurisdictional Assessing Officer by issuing original notice on 30.06.21 as per old regime and after that in view of the decision of the Hon'ble Supreme Court in Union of India v. Ashish Agarwal [2022] 138 taxmann.com 64/286 Taxman 183/444 ITR 1 (SC) wherein it has been held that notices issued u/s 148 of the Act considered the period from 01-04-2021 to 30-06-2021 under old regime are deemed to be show-cause notice issued u/s 148A(b) under the new regime and directed the Assessing Officer to allow the opportunity in respect of such notice. Accordingly, the Assessing Officer provided the information as per instruction of the Hon'ble Supreme Court on 01.06.2022 to the assessee and response date given to the said notice by 15.06.22. It is ....
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....he Finance Act 2021 substituted the old regime for re- assessment with a new regime. The first proviso to Section 149 does not expressly bar the application of TOLA. Section 3 of TOLA applies to the entire Income Tax Act including Sections 149 and 151 of the new regime. Once the first proviso to Section 149(1)(b) is read with TOLA, then all the notices issued between 1 April 2021 and 30 June 2021 pertaining to assessment years 2013-2014, 2014-2015, 2015-2016, 2016-2017, and 2017-2018 will be within the period of limitation as explained in the tabulation below; Assessment Within 3 Expiry of Within six Expiry of Year Years Limitation Years Limitation (1) (2) read with (4) read with TOLA for (2) TOLA for (4) (3) (5) 2013-2014 31.03.201 TOLA not 31.03.2020 30.06.20217 applicable 2014-2015 31.03.201 TOLA not 31.03.2021 30.06.20218 applicable 2015-2016 3103.2019 TOLA not 31.03.2022 TOLA not applicable applicable 2016-2017 31.03.2020 30.06.2021 31.03.2023 TOLA not applicable 2017-2018 31.03.2021 30.06.2021 31.03.2024 TOLA not applicable f. The Revenue concedes that for the assessment year 2015-16, all notices issued on or after 1 April 2021 will have to be dropped as the....
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....020 and 31 March 2021 respectively. a. Finance Act 2021 substituted the old regime." 11. Thereafter, the Hon'ble Supreme Court has elaborated the law brought by the Finance Act, 2021 substituting u/s. 147 to 151 and the TOLA providing for relaxation of time limit prescribed under the specified Acts. Further, their Lordships have also observed that Section 3(1) of TOLA starts with non- obstante clause which has to be read as controlling the provisions of the specified Acts including the provision of Income Tax Act which also overrides Section 149 only to the extent of relaxing the time limit of issuing of re-assessment notice u/s.148. The Hon'ble Court held that time limit for issuance of re-assessment notices which falls for completion between 20th March 2020 and 31/03/2021 has been extended till 30/06/2021. However, non-obstante clause u/s. 3(1) of TOLA will neither the extent of time limit of three years from the end of the relevant assessment year u/s. 149(1)(a) neither the new regime extend the time limit of six years from the end of the relevant assessment years u/s. 149(1)(b) of the old regime. From para 73 to 76, the Lordships have elaborated the sa....
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....to the assessee because it specifies a higher level of authority for the grant of sanctions in comparison to the old regime. Therefore, in terms of Ashish Agarwal (supra), after 1 April 2021, the prior approval must be obtained from the appropriate authorities specified under Section 151 of the new regime. The effect of Section 151 of the new regime is thus (i) If income escaping assessment is less than Rupees fifty lakhs: (a) a reassessment notice could be issued within three years after obtaining the prior approval of the Principal Commissioner, or Principal Director or Commissioner or Director, and (b) no notice could be issued after the expiry of three years, and (ii) If income escaping assessment is more than Rupees fifty lakhs: (a) a reassessment notice could be issued within three years after obtaining the prior approval of the Principal Commissioner, or Principal Director or Commissioner or Director; and (b) after three years after obtaining the prior approval of the Principal Chief Commissioner or Principal Director General or Chief Commissioner or Director General. 76 Grant of sanction by the appropriate authority is a precondi....
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.... during which the proceeding under section 148A is stayed by an order or injunction of any court, shall be excluded." 96. The third proviso excludes the following periods to calculate the period of limitation: (i) the time allowed to the assessee under Section 148A(b); and (ii) the period during which the proceedings under Section 148A are "stayed by an order or injunction of any court." 14. Finally, after analyzing the judgment of Shri Ashish Agarwal in various time limits provided in the Act and the time extended by TOLA, the Hon'ble Supreme Court concluded as under :- 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. TO....
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....30/06/2021 and finally Court held that ld. AO was required to issue re-assessment notice u/s. 148 under the new regime within the time limit surviving u/s. 148 of the Income Tax Act r.w. TOLA. Thus, in all such instances for the relevant assessment years under question the time limit was extended only up to 30/06/2021 for issuance of notice u/s. 148. 16. Now here in this case as noted above for A.Y. 2013-14 after 148A (b), notice u/s. 148 was issued on 29/07/2022; for A.Y. 2014-15 it was issued on 31/07/2022; and for A.Y. 2015-16 it was issued 28/07/2022. Thus, in all these years as noted above the original time limit for six years for A.Y. 2013-14 was upto 31/03/2020; for 2014-15 it was 31/03/2021; and for A.Y. 2015-16 it was 31/03/2022. Even under the TOLA, the time limit for issuance of notice u/s 148 had expired on 30/06/2021 both for A.Y. 2013-14 & A.Y. 2014-15. For the A.Y. 2015-16, the Revenue itself has contended before the Hon'ble Supreme Court as noted above, all the notices issued on or after 01/04/2021 will have to be dropped as they will not fall for completion during the period prescribed under TOLA. Here notice u/s. 148 for the A.Y. 2015-16 has been issu....