TaxTMI 
TaxTMI 
2026 (5) TMI 1187
X X X X Extracts X X X X
X X X X Extracts X X X X
....ence, AO after getting approval from the competent authority issued notice u/s. 148 of the Act on 01.04.2022. In response to notice issued, the assessee did not respond and hence the Assessing Officer issued notice u/s. 142(1) of the Act to continue the proceedings. During the course of assessment proceedings, assessee did not respond for any of the statutory notices including the show cause notice. Hence, the AO added the entire term deposit of Rs. 92,00,000/- as unexplained money u/s. 69 of the Act along with the interest amount earned of Rs. 2,59,622/- as income from other sources by passing an order u/s. 147 r.w.s.144 r.w.s. 144B of the Act dated 05.02.2024. 3. Aggrieved by the assessment completed, the assessee filed an appeal before the ld.CIT(A) on 27.03.2024. Before the ld.CIT(A), the assessee filed certain details by explaining the source for the deposits made during the year. Further, the assessee stated that the deposit was made out of Rs. 81.00 Lakhs gift from his father, whose source of income is agriculture. However no supporting documents were furnished by the assessee and hence, the ld.CIT(A) dismissed the appeal of the assessee by confirming the order of the Ass....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... to section 149(1) if the additional time during which the proceedings were stayed is less than seven days, the AO gets the extended period for issue of notice by seven days. Therefore the ld. DR submitted that in assessee's case the extended time would apply whereby the AO would get time till 06.04.2022 for issuing notice u/s. 148 of the Act. In the instant case, since the notice was issued on 01.04.2022, the Ld.DR submitted that the same is not barred by period of limitation. 8. We heard the rival submissions, perused the material available on record and gone through the orders of the authorities along with the paper book filed and judicial precedents relied on. In order to find out whether the notice u/s. 148 of the Act is time barred or not, we need to first examine the relevant provisions of the Act and the legal position as per judicial precedence. Section 149(1) of the Act contain the provisions with regard to the time limit for issue of notice u/s. 148 of the Act. Notice has to judged according to the law existing on the date of notice issued. The relevant provisions applicable when the notice u/s. 148 of the Act was issued reads as under:(as on 01.04.2022):- ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....imitation 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. 9. The time limits for issue of notice u/s. 148 of the Act were amended as above w.e.f. 01.04.2021. Prior to the amendment the relevant provisions of section 149(1) of the Act read as under - 149 - Time limit for notice. (1) No notice under section 148 shall be issued for the relevant assessment year,- (a) if four years have elapsed from the end of the relevant assessment year, unless the case falls under clause (b) or clause (c); (b) if four years, but not more than six years, have elapsed from the end of the relevant assessment year unless the income chargeable to tax which has escaped assessment amounts to or is likely to amount to one lakh rupees or more for that year; (c) **** Explanation.-In determining income....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e on 31 March 2022. 49. The first proviso to Section 149(1)(b) requires the determination of whether the time limit prescribed under section 149(1)(b) of the old regime continues to exist for the assessment year 2021-2022 and before. Resultantly, a notice under Section 148 of the new regime cannot be issued if the period of six years from the end of the relevant assessment year has expired at the time of issuance of the notice. This also ensures that the new time limit of ten years prescribed under section 149(1)(b) of the new regime applies prospectively. For example, for the assessment year 2012-2013, the ten 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. 50. to 52. *** 53. The position of law which can be derived based on the above discussion may be summarized thus: (i) Section 149(1) of....