TaxTMI 
TaxTMI 
2025 (11) TMI 2041
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....5/1073096685(1) dated 10.02.2025 for the A.Y.2015-16 arising out of order passed under section 147 r.w.s. 144 of Income Tax Act, 1961 (in short 'Act') dated 23.01.2024. 2. Brief facts of the case are that, assessee being an individual and has not filed return of income for the assessment year under consideration under section 139 of the Act. As per the information available with the department, the assessee has made cash deposits of Rs.61,11,900/- in State Bank of Hyderabad and Rs.17,39,400/- in HDFC Bank Limited, in his bank accounts during the period relevant to A.Y.2015-16. Thereafter, Ld. Assessing Officer [hereinafter in short "Ld. AO"] issued show-cause notice under section 148A(b) of the Act. In response, assessee failed to furnis....
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....(1)(b) read with the proviso thereto, having been issued beyond the prescribed period of six years. In view of this the reassessment order passed u/s 147 r.w.s 144 r.w.s. 144B dt. 23.01.2024 is bad in law, void ab initio, and liable to be quashed." 5. Assessee also raised the following additional grounds and prayed for admitting the same, since it is legal in nature and goes to the root of the matter. "The notice issued u/s 148 dt. 03.04.2022 is barred by limitation as per section 149(1)(b) read with the proviso thereto, having been issued beyond the prescribed period of six years. In view of this the reassessment order passed u/s 147 r.w.s 144 r.w.s. 144B dt. 23.01.2024 is bad in law, void ab initio, and liable to be quashed.".....
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....ther submitted that as held in the case of Union of India & Ors. v. Rajeev Bansal [(2024) 8 NYPCTR 1291 (SC)], that the relaxation under Taxation and other Laws (Relaxation of Certain Provisions) Ordinance, 2020 ("TOLA") are not applicable for the A.Y. 2015-16 and are applicable in the case for the time limit for issuing notices expired between 20.03.2020 and 31.03.2021. Further, the Ld.AR also submitted that the time limit for the notice issued under the unamended provisions u/s. 149 of the Act expired on 31.03.2022 i.e., 6 years from the end of relevant assessment year for the escaped assessment amounts to or is likely to more than one lakh rupees or more for that year. Ld.AR also referred to Question No. 5 raised before the Hon'ble Karna....
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....sh Agarwal [444 ITR 001(SC)] wherein the Hon'ble Supreme Court has directed vide its order dated 04.05.2022 to treat the notice issued under section 148 of the Act as per the amended provisions of the I.T. Act, r.w. section 3(1) of TOLA as deemed to be a show-cause notice under the provisions of section 148A of the Act. The Hon'ble Supreme Court concluded that section 3(1) of the TOLA overrides section 149 of the Act only to the extent of relaxing the time limit for issuance of the re-assessment notice under section 148 of the Act. TOLA will continue to apply to the Act after 01.04.2021 if any action or proceeding specified under the substituted provisions of the Act falls for completion between 20.03.2020 and 31.03.2021. In the instant cas....
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....ents of the proviso could be broken down for analysis as follows: (i) no notice under section 148 of 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." 10. The first proviso of section 149(1)(b) prescribed under section 149(1)(a) of the old regime continues to exist for the A.Y. 2021-2022 and before. Consequently, notice under section 148 of the Act as per amended provisions cannot be issued for the period beyond six years from the end of the relevant assessment year has expired at the time of issuance ....
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....airness invited the attention of this Court to a three judge bench decision of this Court in Union of India and Ors. v. Rajeev Bansal, reported in 2024 SCC OnLine SC 2693, more particularly, paragraph 19(f) which reads thus:- "19. (f) The Revenue concedes that for the assessment year 2015-2016, all notices issued on or after April 1, 2021 will have to be dropped as they will not fall for completion during the period prescribed under the Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020." 5. As the revenue made a concession in the aforesaid decision that is for the assessment year 2015-2016, all notices issued on or after 1st April, 2021 will have to be dropped as they would not fall for com....