TaxTMI 
TaxTMI 
2026 (5) TMI 955
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....sued with a Notice dated 31.03.2022 under Section 148A(b) of the Act under the new regime as in force with effect from 01.04.2021. The said notice ultimately culminated in the impugned Section 148A(d) order dated 28.04.2022 and the consequential Section 148 Notice dated 28.04.2022. 4. Meanwhile, the Hon'ble Supreme Court delivered its verdict in Union of India Vs. Ashish Agarwal., (2024) SCC Online SC 2693 on 04.05.2022, which was later further clarified by the Hon'ble Supreme Court in Union of India Vs. Rajeev Bansal, 2024 SCC Online SC 2993. I shall refer to the same in due course. 5. The challenge to the impugned order dated 28.04.2022 passed under Section 148A(d) of Act and the consequential Section 148 Notice dated 28.04.2022 is primarily on the ground that the limitation for issuance of Section 148 Notice. According to the Petitioner, the limitation had already expired on 31.03.2022 under the old regime and therefore in terms of 1st proviso to Section 149(1) of the Act as in force with effect from 01.04.2021 and therefore the reassessment proceedings were without jurisdiction. 6. That apart, it is submitted by the learned counsel for the petitioner that the Notice da....
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....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 Year With 3 Years Expiry of Limitation read with TOLA for (2) Within six Years Expiry of Limitation read with TOLA for (4) (1) (2) (3) (4) (5) 2013-2014 31.03.2017 TOLA not applicable 31.03.2020 30.06.2021 2014-2015 31.03.2018 TOLA not applicable 31.03.2021 30.06.2021 2015-2016 31.03.2019 TOLA not applicable 31.03.2022 TOLA not 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 is....
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....en year period would have expired on 31 March 2023, while the six year period expired on 31 March 2019. Without the proviso to Section 149(1)(b) of the new regime, the Revenue could have had the power to reopen assessments for the year 2012-2013 if the escaped assessment amounted to Rupees fifty lakhs or more. The proviso limits the retrospective operation of Section 149(1)(b) to protect the interests of the assesses." 12. In this connection, the learned counsel for the petitioner has also drawn the attention to a recent decision of the Hon'ble Supreme Court in Deepak Steel and Power Limited Vs. Central Board of Direct Taxes., [2025] 476 ITR 369 (SC). 13. It is further submitted by the learned counsel for the petitioner that the entries in the books of account did not qualify as "assets" for the purpose of issuance of a Notice under Section 148 of the Act during the period in dispute viz., Financial Year 2014-2015. 14. That apart, the learned counsel for the petitioner would submit that in accordance with Section 149 of the Income Tax Act, 1961 which was amended by the Finance Act, 2021 with effect from 01.04.2021, the extended period of limitation exceeding three years bu....
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....er on the decision of the Hon'ble Supreme Court in Union of India Vs. Rajeev Bansal, referred to supra, is misplaced and without any merits. 21. I have considered the arguments advanced by the learned counsel for the petitioner and the learned Senior Standing Counsel for the respondents and the materials on record. 22. I have perused the documents and the list of dates and events qua Paragraph No.28 from the decision of the Hon'ble Supreme Court in Union of India Vs. Ashish Agarwal, (2023) 1 SCC 617 and Paragraph Nos.112 and 114 from the decision of the Hon'ble Supreme Court in Union of India Vs. Rajeev Bansal, 2024 SCC Online SC 2993. 23. Relevant dates for a fair disposal of the present case are as follows:- 24. Table No.II: Assessment Year 2015-2016 S. No. Notice/Event Date 1 Date of Return of Income filed for the Assessment Year 2015-2016 30.09.2015 2 Date of scrutiny under Section 133A of the Act 12.02.2021 3 Notice under Section 148A(b) of the Act 31.03.2022 4 Reply filed by the Petitioner seeking extension of time for 15 days 06.04.2022 5 Notice under Section 148A(b) of the Act granting time upto 22.04.2022 ....
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....essing Officer for passing an order under clause (d) of section 148A is less than seven days, such remaining period shall be extended to seven days and the period of limitation under this sub-section shall be deemed to be extended accordingly. Explanation.- For the purposes of clause (b) of this sub-section, "asset" shall include immovable property, being land or building or both, shares and securities, loans and advances, deposits in bank account. (2) The provisions of sub-section (1) as to the issue of notice shall be subject to the provisions of section 151." 26. A new notice under Section 148 of the Act under the new regime as in force with effect from 1st April, 2021 could be issued for reassessment within the limitation prescribed under Section 149 of the Act under the new regime as in force with effect from 01.04.2021 and within the extended time limit surviving under the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) [TOLA] Act, 2020, if the same was applicable. 27. The only condition for issuance of Section 148 Notice under the new regime is that the limitation under Section 148, Section 153A or Section 153 under the old regime as i....
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.... was issued beyond the said date on 28.04.2022 may give an impression that the said Section 148 Notice issued to the petitioner on 28.4.2022 was time barred in terms of the first proviso to Section 149 of the Income Tax Act, 1961 as in force with effect from 01.04.2021. 33. However, it has to be stated that the said Section 148 Notice that was issued to the petitioner on 28.4.2022 cannot be said to be time barred for the following reasons:- (i) Section 148A(b) Notice was issued on 31.03.2022 on the last date for issuance of a notice under Section 148. (ii) Extension of limitation under Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020, was limited to 30.6.2021 for the specified period, whenever limitation expired between 15.03.2020 and 30.06.2021. (iii) However, the period was further extended by the Hon'ble Supreme Court vide its Order dated 10.01.2022 in Re: Cognizance for Extension of Limitation, as lockdown due to outbreak of covid-19 continued even after 30.06.2021. As per the decision, for computation for the period of limitation prescribed under any general or special laws in respect of all judicial or quasi judi....
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....ormation and material relied upon by the Revenue, so that the assessee's can reply to the show-cause notices within two weeks thereafter; (ii) The requirement of conducting any enquiry, if required, with the prior approval of specified authority under section 148A(a) is hereby dispensed with as a onetime measure vis-à-vis those notices which have been issued under section 148 of the unamended Act from 01.04.2021 till date, including those which have been quashed by the High Courts. Even otherwise as observed hereinabove holding any enquiry with the prior approval of specified authority is not mandatory but it is for the concerned Assessing Officers to hold any enquiry, if required; (iii) The assessing officers shall thereafter pass orders in terms of section 148A(d) in respect of each of the concerned assessee's; Thereafter after following the procedure as required under section 148A may issue notice under section 148 (as substituted); (iv) All defences which may be available to the assesses including those available under section 149 of the IT Act and all rights and contentions which may be available to the concerned assessee's and Revenue under t....
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.... in Paragraph No.114 was illustrated in Paragraph No.112 of Rajeev Bansal case (cited supra), which has been already extracted. Paragraph 114 from the said decision is extracted below: "114. In view of the above discussion, we conclude that: a. After April 1, 2021, the Income Tax Act has to be read along with the substituted provisions; b. Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 will continue to apply to the Income-tax Act after April 1, 2021 if any action or proceeding specified under the substituted provisions of the Income Tax Act falls for completion between March 20, 2020 and March 31, 2021; c. Section 3(1) of the Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 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. Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 will extend the time limit for the grant of sanction by the authority specified under section 151. The test to determine whether Taxation and other Laws (Relaxation and ....
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.... Assessing Officer after receiving the response of the assessee. In this instance, if the assessee submits the response on June 18, 2022, the Assessing Officer will have sixty one days from June 18, 2022 to issue a reassessment notice under section 148 of the new regime. Thus, in this illustration, the time limit for issuance of a notice under section 148 of the new regime will end on August 18, 2022. 42. In this context it will be useful to refer to paragraph 50 from the judgement of the Hon'ble Supreme Court in Union of India Vs. Rajeev Bansal, 2024 SCC Online SC 2993 referred to supra. There after examining various judgements and the amended provisions of the Act, the Hon'ble Supreme Court in Union of India Vs. Rajeev Bansal, 2024 SCC Online SC 2993observed as under: - "50. Another important change under section 149(1)(b) of the new regime is the increase in the monetary threshold from rupees one lakh to rupees fifty lakhs. The old regime prescribed a time limit of six years from the end of the relevant assessment year if the income chargeable to tax which escaped assessment was more than rupees one lakh. In comparison, the new regime increases the time limit to ten ....
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....her, as per the 4th proviso to Section 149 of the Act, as in force with effect from 01.04.2021, where immediately after the exclusion of the above period referred to in the 3rd proviso, the period of limitation available to the Assessing Officer for passing an order under clause (d) of section 148A is less than seven days, such remaining period shall be extended by seven days and the period of limitation under section 149(1) to issue a Notice under Section 148 shall be deemed to be extended accordingly. 50. In this case, Section 148A(b) Notice is dated 31.03.2022 and 08.04.2022 to which the petitioner filed a reply on 21.04.2022. The Assessing Officer thus had time till 21.05.2022 to pass order under Section 148A (d) of the Act. 51. Section 148A(d) Order was passed on 28.04.2022. Thus, the Section 148A(d) order dated 28.04.2022 has been passed well ahead of time, as the time for passing such order would have expired only on 21.05.2022 as mentioned, it being within one month from the Reply dated 21.04.2022of the Petitioner. 52. Since, the order dated 28.04.2022under Section 148A(b) of the Act under the new regime has been passed in time, Section 148 Notice dated 28.04.2022 ....
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....the books seized or recovered during the course of a survey under Section 133A of the Act cannot be taken into consideration also cannot be countenanced. 56. The definition of "asset" contained in Explanation (b) to Section 149(1) of the Act under the new regime as in force with effect from 01.04.2021 as it stood till 31.03.2022 makes it clear that the definition is inclusive in nature as the expression employed is "includes". 57. The above amendment to Section 149(1)(b) of the Act as in force with effect from 01.04.2022 has to be held as clarificatory in nature. For the sake of clarity, Section 149(1)(b) along with the relevant explanation, as it stood up to 31.03.2022 and thereafter is reproduced below: - Section 149(1)(b) with effect from 01.04.2021 till 31.03.2022. Section 149(1)(b) with effect from 01.04.2022 till 31.03.2023. 149. Time limit for notice. 149. Time limit for notice. (1) No notice under section 148 shall be issued for the relevant assessment year,- (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 relevant assessment year, unless the case falls under cla....