TaxTMI 
TaxTMI 
2026 (4) TMI 1901
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....ithout jurisdiction and hence, deserved to be quashed as such. 2.1 That the CIT(A) has failed to appreciate that the notice u/s. 148A(b) of the Act, under section 148 of the Act order u/s. 148A(d) of the Act were also illegal, invalid and without jurisdiction and deserves to be quashed as such. 2.2 That the Ld. CIT(A) has failed to appreciate that there was no tangible material on record in the form of specified information to suggest that income of the appellant had escaped assessment in view thereof the proceedings initiated were illegal, untenable and therefore unsustainable. 2.3 That the CIT(A) has failed to appreciate that non supply of information in accordance with clause (i) of Explanation 1 to Section 148 of the Act even otherwise vitiated the notice u/s. 148A(b) of the Act and order u/s. 148A(d) of the Act. 2.4 That the CIT(A) has failed to appreciate that initiation of proceeding was mechanical and without any application of mind much less independent application of mind, therefore the notices issued u/s. 148A (b) of the Act; and u/s. 148 of the Act were invalid notice; and also order u/s. 148A(d) of the Act was an invalid order and th....
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....ce was issued u/s 148A (b) on 24.5.2022 and order u/s 148A(d) was passed and notice u/s 148 was issued to the assessee on 29.7.2022. The relevant copy of the notices and order, as state above, are placed on record and before us, ld. AR submitted that for issue of notice u/s 148, the Assessing Officer should have obtained approval from Ld. Principal Chief Commissioner or Ld. Principal Director General or Chief Commissioner or Director General, where there is no ld. Principal Chief Commissioner or Ld. Principal Director General. Whereas for initiating the proceedings, the Assessing Officer has obtained the prior approval from Principal Commissioner of Income Tax-7, New Delhi which is not as per the provisions of the Act. In this regard, we draw support from the decision of the Hon'ble High Court of Delhi in the case of Kusum Healthcare (P) Ltd. vs. DCIT reported in 304 Taxman 471 wherein, in the relevant paras it has been held as under:- "4. Undisputedly, we are in this writ petition concerned with Assessment Year 2016-17 and in respect of which the notice under section 148 of the Act ultimately came to be issued on 29 July, 2022. It is thus apparent that the action had come....
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....favour of the assessee as under :- "18. In view of the above, the order dated 29.07.2022 passed under section 148A(d) of the Act is not sustainable. Consequently, the subsequent proceedings, including the assessment order dated 23.05.2023, cannot be sustained. Accordingly, the impugned order passed under section 148A(d) of the Act, the notice issued under section 13\48 of the Act as well as the assessment order dated 23.05.2023 and the demand raised pursuant thereto, are hereby set aside." 6. Respectfully following the above decision, we are inclined to allow this legal ground raised by the assessee by setting aside the reassessment order on this count. 7. Apropos second contention of the Ld. AR is concerned, which is relating to initiation of proceedings u/s. 148 of the Act which is barred by limitation. It is submitted that this issue is no longer res-integra and covered by the decision of the Hon'ble Apex Court in the case of UOI vs. Rajeev Bansal reported in 469 ITR 46. It was submitted that the notice u/s. 148 of the Act was issued on 07.6.2021; notice u/s. 148A(b) of the Act was issued on 24.5.2022; order u/s.148A(d) of the Act was issued on 29.7.2022 and notic....
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....i) consider the reply of the assessee under section 149A(C); (ii) take a decision under section 149A(d) based on the available material and the reply of the assessee; and (iii) issue a notice under section 148 if it was a fit case for reassessment. Once the clock started ticking, the assessing officer was see State of AP v. AP Pensioners Association, (2005) 13 SCC 161 [28]. [This court observed that the "legal fiction undoubtedly is to be construed in such a manner so as to enable a person, for whose benefit such legal fiction has been created, to obtain all consequences flowing thereform."] PART F required to complete these procedures within the surviving time limit. The surviving time limit, as prescribed under the Income Tax Act read with TOLA, was available to the assessing officers to issue the reassessment notices under section 148 of the new regime. 112. Let us take the instance of a notice issued on 1 May 2021 under the old regime for a relevant assessment year. Because of the legal fiction, the deemed show cause, notice will also come into effect from 1 May 2021. After accounting for all the exclusions, the assessing officer will have sixty-one days [days....