TaxTMI 
TaxTMI 
2026 (7) TMI 613
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....ithout fulfilling the pre-conditions specified in section 149(1)(b) of the Act. 4. The CIT(A) failed to appreciate that the AO ought to have dropped the assessment proceeding once he was satisfied that the income chargeable to tax which has allegedly escaped assessment was less than Rs. 50 lakhs. 5. Without prejudice to the ground that the limitation under section 149(1)(b) is not applicable to the present case, the notice under section 148 of the Act is barred by limitation by virtue of proviso to section 149(1)(b) of the Act as the same has been issued beyond a period of 6 years from the end of the assessment year and the consequent assessment order is liable to be quashed. 6. The CIT(A) failed to appreciate that the third proviso to section 149(1) of the Act only carves out an exception to the main provision of section 149(1) of the Act and does not carve out an exception to the period of limitation restricted under the first proviso to section 149(1) of the Act and consequently, the notice under section 148 of the Act is barred by limitation." 3. Brief facts of the case are that the assessee is an individual. For the assessment year 2015-16, assess....
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....ce issued u/s. 148 of the Act for the assessment year 2015-16 after 31.03.2022 is barred by limitation in view of first proviso to section 149 of the Act. The relevant finding of the Tribunal reads as under:- 6. We heard the rival submissions and perused the material on record. In order to find out whether the notice under section 148 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 under section 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):- 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 relevant assessment year, unless the case falls under clause (b); (b) if three years, but not more than ten years, have elapsed from the end of the relevant assessment year unless the Assessin....
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....o the provisions of section 151 7. The time limits for issue of notice under section 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 chargeable to tax which has escaped assessment for the purposes of this sub-section, the provisions of Explanation 2 of section 147 shall apply as they apply for the purposes of that section. (2) & (3) **** 8. The time limit for issue of notice under section 148 of the Act was revised with effect from 01.04.2021 and the legislature in order to make t....
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....nd 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 the new regime is not prospective. It also applies to past assessment years; (ii) The time limit of four years is now reduced to three years for all situations. The Revenue can issue notices under section 148 of the new regime only if three years or less have elapsed from the end of the relevant assessment year; (iii) the proviso to Section 149(1)(b) o....
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....A dated 04.04.2022 in DIN & Notice No.ITBA/AST/F/148A/2022-23/1042464779(1) for the AY 2015~16 along with the impugned notice no.1 issued under Section 148A(b) of the Act in PAN:ADDPL2229A dated 23.03.2022 in DIN & Notice No.ITBA/AST/F/148A(SCN)/2021-22/1041356299(1) for the AY 2015-16 and the impugned notice No.2 under Section 148 of the Act in PAN:ADDPL2229A dated 04.04.2022 in DIN & Notice No.ITBA/AST/S/148_1/2022- 23/1042466733(1) for the AY 2015-16. 11. In disposing off the above prayer, the Hon'ble Jurisdictional High Court held as follows:- "2. The issue, as on date is covered by a decision of the Division Bench of the Bombay High Court in Hexaware Technologies Ltd. Vs. Assistant Commissioner of Income Tax [(2024) 162 taxmann.com 225 (Bombay)]. In paras 29 and 30, the Court has examined the issue in the light of the 1st and 3rd proviso to Section 149 of the Income Tax Act, 1961 as in force with effect from 01.04.2021. The 3rd proviso to Section 149 (1) is now the 5th proviso to Section 149 (1) with effect from 01.04.2023. 3. Although, the submissions made by the learned counsel for the respondents appears to be more attractive, I am bound by the de....