TaxTMI 
TaxTMI 
2026 (7) TMI 406
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....ing case of appellant u/s 148 of the Act. 2. The learned assessing officer has erred in law as well as in fact in making assessment u/s 147 r.w.s 144B of the Act. 3. The learned assessing officer has erred in law as well as in fact in making addition of the capital introduced in partnership firm of Rs. 15,50,000/- by the appellant. 4. The learned assessing officer has erred in law as well as in fact in making addition of Rs. 15,50,000/-as unexplained investment u/s 69A of the Act. 5. The learned assessing officer has erred in law as well as in facts in applying provisions of Special Tax Rate without recording any satisfaction about application of special rate and erred in invoking provision of Section 115BBE of the Act in the facts and circumstances of the case of Appellant. 6. The learned assessing officer has erred in law as well as in facts in charging interest under section 234B and 234C of the Act while determining demand payable by the Appellant without appreciating that since the Appellant could not be held liable for the payment of advance tax for the amount under reference, no interest under section 234B and 234C could be charge....
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.... under consideration. In this case original notice u/s 148 of the Income Tax Act, 1961 was issued on 23.04.2021 on the basis of information in possession of the assessing officer after following the provisions of Taxation and Other laws (Relaxation and Amendment of Certain Provisions) Act, 2020 and as per the CBDT Notification No. 20 dated 31.03.2021 and subsequent Notification No. 38 dated 27.04.2021. However, the validity of notices u/s 148 issued from 01.04.2021 to 30.06.2021 became subject matter of writ petitions before various Hon'ble High Courts. The matter was finally decided by the Hon'ble Supreme Court vide order dated 04.05.2022 in the case of Union of India Vs. Ashish Agarwal & others (2022 SCC Online SC 543) as per which the notices issued u/s 148 of the Act during that period were deemed as notice under section 148A(b) of the Income Tax Act, 1961 under the new regime, as amended by Finance Act, 2021 w.e.f. 01.04.2021. Therefore, in consequence of the order dated 04.05. 2022 of Hon'ble Supreme Court in the case of Union of India Vs. Ashish Agarwal& others (2022 SCC Online SC 543) and CBDT's Instruction No. 1/2022 issued vide F.No. 279/Misc/M-51/2022-ITJ....
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....sions of section 148A, and were the subject matter of writ petitions before the various respective High Courts shall be deemed to have been issued under section 148A of the IT Act as substituted by the Finance Act, 2021 and construed or treated to be show cause notices in terms of section 148A(b). 2. Accordingly, pursuant to the judgment of the Hon'ble Supreme Court dated 04.05.2022 (2022 SCC Online SC 543) (Union of India v. Ashish Agarwal) and subsequently CBDT's Instruction No.01/2022 vide F.No.279/Misc./M/-51/2022-IT.J dated 11.05.2022, the further proceedings with reference to section 148A(b) in consequence to Hon'ble SC Order dated 04.05.2022 has been initiated and vide this office DIN & Letter ITBA/COM/F/17/2022- 23/1043192918(1) dated 26-05-2022, the information/materials relied upon for issuance of above notice by the revenue in this case and an opportunity of being heard as per provisions of section 148A(b) of the Act has been provided to the assessee. The relevant part of the above letter is reproduced as under- 'The assessee has filed the return of income for the AY 2016-17 on 17/12/2016 declaring total income of Rs 2,55,770/- In this case ....
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....nd perused the fact of the case including the findings of the ld CIT(A) and other materials brought on record. I note that the assessee's case pertains to assessment year 2016-17 and three years elapsed on 31.03.2020. However, the assessee's assessment was reopened on 23.04.2021 (being original notice under section 148 of the Act), after the period of three years. Notice under section 148A(b) was issued on 26.05.2022 and final notice under section 148A(d) of the Act was issued on 21.07.2022 which are after the period of three years and I note that in the reasons recorded by the Assessing Officer, the income escaped from assessment is only to the tune of Rs. 15,50,000/-, which is below the threshold limit Rs. 50,00,000/-. Hence, the reopening does not survive and liable to be quashed. 11. Therefore, I find that in order to reopen the assessment under section 147 of the Act, after a period of three years, the income escaped from assessment should be more than Rs. 50,00,000/-, however, in the assessee's case, the income escaped from assessment is only Rs. 15,50,000/- therefore, jurisdiction exercised by the assessing officer to reopen the assessment of the assessee is not valid, as....
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....417 (Delhi), wherein it was held as follows: "Section 149, read with sections 148 and 148A, of the Income-tax Act, 1961 and section 3 of the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 and Article 142 of the Constitution of India, 1950- Income escaping assessment - Time limit for issuance of notice - Assessment years 2016-17 and 2017-18 - A notice dated 28-6- 2021 under unamended section 148 was issued upon assessee in respect of relevant assessment year 2017-18-Similarly, a notice dated 30-6-2021 under unamended section 148 was issued upon assessee in respect of relevant assessment year 2016-17-Pursuant to judgment of Supreme Court in case of Union of India v. Ashish Agarwal [2022] 138 taxmann.com 64/286 Taxman 183/444 ITR 1 (SC), revenue issued another notice under section 148A(b) dated 20-5-2022 for assessment year 2017-18-Assessee contended that reassessment proceedings triggered against it were time-barred as limitation period of three years qua relevant assessment years had expired - Whether reassessment notice issued on or after 1-4-2021 under unamended section 148 would be deemed to have been issued under substituted section 1....