TaxTMI 
TaxTMI 
2026 (5) TMI 956
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....tice under Section 148 of the Income Tax Act, 1961 can be issued under the new regime within 3 years or 10 years, as the case may be provided that the limitation prescribed under the old regime under Section 149 of the Income Tax Act, 1961, as in force on 31.03.2021, had not expired. The other requirement for invoking extended period is that Assessing Officer should be in possession books of account or other documents or evidence which reveal that the income chargeable to tax, represented in the form of- (i) an asset; (ii) expenditure in respect of a transaction or in relation to an event or occasion; or (iii) an entry or entries in the books of account, which has escaped assessment amounts to or is likely to amount to fifty lakh rupees or more. This is as per the first Proviso to Section 149 of the Income Tax Act, 1961 as in force with effect from 01.04.2021. 4. Section 149 of the Income Tax Act, 1961 as in force with effect from 01.04.2021 is reproduced below:- "149. Time limit for notice. (1) No notice under section 148 shall be issued for the relevant assessment year,- (a) if three years have elapsed from the end of the r....
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....movable property, being land or building or both, shares and securities, loans and advances, deposits in bank account. [(1A) Notwithstanding anything contained in sub-section (1), where the income chargeable to tax represented in the form of an asset or expenditure in relation to an event or occasion of the value referred to in clause (b) of sub-section (1), has escaped the assessment and the investment in such asset or expenditure in relation to such event or occasion has been made or incurred, in more than one previous years relevant to the assessment years within the period referred to in clause (b) of sub-section (1), a notice under section 148 shall be issued for every such assessment year for assessment, reassessment or recomputation, as the case may be.] (2) The provisions of sub-section (1) as to the issue of notice shall be subject to the provisions of section 151.] 5. Since the income that has escaped assessment was more than one lakh (i.e. Rs. 43,75,000/-), the Income Tax Department had time up to 6 years to issue a Section 148 Notice under the old regime i.e., till 31.03.2023. 6. In the present case, Section 148A(b) Notice of the Income Tax Act, ....
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....ale of immovable property Rs. 43,75,000/-." In spite of the above transaction, it is noted that you have not filed the return of income for A.Y. 2016-17. In view of the above, you are required to show-cause as to why a Notice u/s. 148 of the Income-tax Act, 1961 should not be issued on the basis of the above information which suggests that the income chargeable to tax has escaped assessment." 14. The argument of the Petitioner is that the amount was less than Rs. 50,00,000/- and therefore the aforesaid Notice under Section 148A(b) of the Income Tax Act, 1961 could not have been issued as the limitation under the new regime had already expired on 31.03.2020 in terms of Section 149(1)(a) of the Income Tax Act, 1961. 15. The recital in the above Sale Deed indicates that the Petitioner's husband V.R.Shanmugasundaram had retained ground floor and third floor of the built-up area inclusive of common area together with 2/3rd undivided share in 1360 sq.ft., of the land and that the Petitioner was settled 1st floor or inclusive of common area in the premises together with 1/4th undivided share out of 1360 sq.ft., of land and that the 3rd vendor namely S.Suresh, son o....
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....ection 24, for Section 48 (w.e.f. 1.4.1993).] -The income chargeable under the head "Capital gains" shall be computed, by deducting from the full value of the consideration received or accruing as a result of the transfer of the capital asset the following amounts, namely:- (i) expenditure incurred wholly and exclusively in connection with such transfer; (ii) the cost of acquisition of the asset and the cost of any improvement thereto: (iii) in case of value of any money or capital asset received by a specified person from a specified entity referred to in subsection (4) of section 45, the amount chargeable to income-tax as income of such specified entity under that sub-section which is attributable to the capital asset being transferred by the specified entity, calculated in the prescribed manner: Provided that in the case of an assessee, who is a non-resident, capital gains arising from the transfer of a capital asset being shares in, or debentures of, an Indian company shall be computed by converting the cost of acquisition, expenditure incurred wholly and exclusively in connection with such transfer and the full value of the consider....
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....f. 1.4.2005).] [Explanation. - For the purposes of this section,- (i) "foreign currency" and "Indian currency" shall have the meanings respectively assigned to them in section 2 of the Foreign Exchange Regulation Act, 1973 (46 of 1973); (ii) the conversion of Indian currency into foreign currency and the reconversion of foreign currency into Indian currency shall be at the rate of exchange prescribed in this behalf; (iii) "indexed cost of acquisition" means an amount which bears to the cost of acquisition the same proportion as Cost Inflation Index for the year in which the asset is transferred bears to the Cost Inflation Index for the first year in which the asset was held by the assessee or for the year beginning on the 1st day of April, 1981, whichever is later; (iv)"indexed cost of any improvement" means an amount which bears to the cost of improvement the same proportion as Cost Inflation Index for the year in which the asset is transferred bears to the Cost Inflation Index for the year in which the improvement to the asset took place;] (v) ["Cost Inflation Index", in relation to a previous year, means such Index as the Cen....