TaxTMI 
TaxTMI 
2026 (2) TMI 1430
X X X X Extracts X X X X
X X X X Extracts X X X X
....ring the assessment proceedings, notice under section 142(1) along with detailed questionnaire was issued to the assessee on 20/09/2023. However, the assessee has failed to submit the required details/information regarding the abovementioned financial transactions. The A.O after considering the relevant non-responsive nature of the assessee has obtained bank account statement under section 133(6) of the Act and observed that the assessee has made huge cash deposits of Rs. 59,85,508/- into her bank account and also earned interest income of Rs. 36,310/-. Since the assessee has not filed any information, the A.O passed the assessment order under section 147 r.w.s. 144 of the Act, on 18/03/2022 and determined the total income of the assessee at Rs. 60,21,818/-, by making additions of Rs. 60,21,818/- under section 69A of the Act, as unexplained money. 3. Aggrieved by the assessment order, the assessee preferred an appeal before the Ld. CIT(A). Before the Ld. CIT (A), the assessee neither appeared nor filed any explanation. Therefore, the Ld. CIT(A) disposed of the appeal filed by the assessee ex-parte for non-prosecution and upheld the additions made by the A.O towards the cash depo....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e further submitted that as per the information available with the A.O, the income escaped the assessment is more than Rs. 50 lakhs and as per the amended provisions of section 149 of the Act, if income escaped the assessment exceeds Rs.50 lakhs or more, then the A.O can reopen the assessment beyond 3 years and up to 10 years and therefore, the argument of the learned Counsel for the assessee that the notice issued by the A.O under section 148 is beyond limitation is devoid of any merit and cannot be accepted. 7. We have heard both the parties, perused the material available on record and had gone through the orders of the authorities below. We have also carefully considered the relevant provisions of section 149(1)(b) of the Act, and notice issued under section 148 of the Act dated, 06/04/2022. As per the provisions of section 149(1) of the Act and the first proviso provided therein, no notice under section 148 of the Act shall be issued at any time in a case for the relevant A.Y beginning on or before 1/4/2021, if a notice under section 148 of the Act could not have been issued at that time on account of beyond the time limit specified under the provisions of clause (b) of sec....
X X X X Extracts X X X X
X X X X Extracts X X X X
....A.O. under Section 148 of the Act dated 09.04.2022 in the light of the first proviso to Section 149(1)(b) of the Act. The first proviso to Section 149(1)(b) of the Act states that, no notice under Section 148 of the Act shall be issued at any time in a case for the relevant assessment year beginning on or before 01.04.2021 if a notice under Section 148 of the Act could not have been issued at that time on account of being beyond the time limit specified under the provisions of clause (b) of Section 149 of the Act, as it stood immediately before the commencement of the Finance Act, 2021. 18. In the present case, the assessment year involved is 2015-16 and as per the unamended provisions of Section 149, if the income escaped assessment is more than Rs. 1 lakh, then the assessment can be reopened up to six years from the end of the relevant assessment year. Accordingly, for the assessment year 2015-16, the assessment could have been reopened on or before 31.03.2022. Since the time limit available for issuance of notice under Section 148 of the Act, as per the old regime of reassessment, was up to 31.03.2022, in our considered view, the A.O. cannot issue reassessment notice un....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the new regime can be issued at any time for an assessment year beginning on or before 1 April 2021; (ii) if it is barred at the time when the notice is sought to be issued because of the "time limits specified under the provisions of" 149(1)(b) of the old regime. Thus, a notice could be issued under section 148 of the new regime for assessment year 2021-2022 and before only if the time limit for issuance of such notice continued to exist under section 149(1)(b) of the old regime. 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 20....