TaxTMI 
TaxTMI 
2026 (8) TMI 759
X X X X Extracts X X X X
X X X X Extracts X X X X
....ion of Rs. 45,80,000/- made by the Assessing Officer u/s 69A of the Act towards unexplained money. 5. On the facts and circumstance of the case, the Learned CIT(A) is erred in rejecting the contention of the appellant that his wife took loan and also erred in treating the same as unexplained investment of the appellant. 6. On the facts and circumstance of the case, the Learned CIT(A) is erred in not appreciating the fact that the amount of Rs. 33,00,000/- i.e., share of the appellant in purchase of the property met through a joint account operated by the appellant and his wife, and there is no hard and fast rule that both account holders should invariably operate the account since there is no discrimination shown between the funds deposited by each of such holders. 7. On the facts and circumstance of the case, the Learned CIT(A) is erred in not appreciating the fact that the Assessing Officer erred in bringing credit entries in the bank also to tax even though the assessment was reopened in order to examine the sources for purchase of immovable property, thereby travelled beyond his jurisdiction and taxed the entire credits appearing in the bank account. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f any fact or record as held by the Hon'ble Supreme Court in the case of NTPC vs. CIT (supra). Accordingly, the additional ground raised by the assessee is admitted for adjudication. Since the issue raised by the assessee is legal in nature and goes to the root of the matter therefore, we first take up the additional ground raised by the assessee for hearing and adjudication. 7. The learned Authorised Representative of the Assessee has submitted that the Assessing Officer has provided the reasons for reopening of the assessment as Annexure to notice u/sec.143(2) of the Act placed at Page no.76 of the paper book and stated that the approval of Addl. CIT is taken before issuing the notice u/sec.148 of the Act. He has also referred to the notice issued by the Assessing Officer placed at Page no.70 of the paper book and submitted that the Assessing Officer has again referred to the same Authority regarding the necessary satisfaction/approval. Thus, the learned Authorised Representative of the Assessee has submitted that when the notice issued by the Assessing Officer is beyond 04 years from the end of the assessment year under consideration then, the Competent Authority to grant....
X X X X Extracts X X X X
X X X X Extracts X X X X
....or the approval of Addl. Commissioner of Income Tax, NCR-10, Chennai." 9.2. Thus, the Assessing Officer has specifically mentioned that the proceedings u/sec.148 were initiated and submitted for approval of Addl. CIT, Non-Corporate Range- 10, Chennai. Thus, it is evident from the record that the Assessing Officer issued notice u/sec.148 after obtaining the approval from Addl. CIT. As per the provisions of sec.151 of the Act as exist at the relevant point of time the Competent Authority for granting approval in case of notice issued u/sec.148 of the Act after expiry of 04 years from the end of the assessment year is Pr. Chief Commissioner/CCIT/Pr. CIT/Commissioner. For ready reference sec.151 as existed at relevant point of time is quoted as under: "Sanction for issue of notice 151. (1) No notice shall be issued under section 148 by an Assessing Officer, after the expiry of a period of four years from the end of the relevant assessment year, unless the Principal Chief Commissioner or Chief Commissioner of Principal Commissioner or Commissioner is satisfied, on the reasons recorded by the Assessing Officer, that it is a fit case for the issue of such notice. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....CIT and not from the Competent Authority/Specified Authority being Pr. CIT/CCIT /Pr. CIT/CIT. Similar view has been taken by the Hon'ble Delhi High Court in the case of Communist Party of India (Marxist) vs. Income Tax Department (supra), in Para nos.14 to 18 as under: "14. In JM Financial & Investments Consultancy Services (P.) Ltd. v. Asstt. CIT [W.P. No. 1050 of 2020, dated 4-4-2022), the Bombay High Court had made observations to the effect that even if the time to issue notice may have been extended by TOLA, the same would not amend the provisions of Section 151 of the Act. The relevant extract of the said decision is set out below: "5. Respondents have relied upon a letter dated 18th March 2021 issued by one Income Tax Officer, who has given an opinion to the Additional Commissioner of Income Tax that in view of the Taxation and other Laws (Relaxation of Certain Provisions) Act, 2020 (Relaxation Act), limitation, inter alia, under provisions of Section 151(1) and Section 151(2), which were originally expiring on 31st March 2020 stand extended to 31st March 2021. According to the Income Tax Officer, in view of the above, Assessment Year 2015-2016 which falls ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rs which elapsed on March 31, 2020 the approval as contemplated in section 151(if) of the Act would have to be obtained which has not been done by the Assessing Officer. The impugned notice mentions that the prior approval has been taken of the "Principal Commissioner of Incometax-8" ("PCIT-8") which is bad in law as the approval should have been obtained in terms of section 151(ii) and not section 151(i) of the Act and the Principal Commissioner of Income-tax- 8 cannot be the specified authority as per section 151 of the Act. Further, even in the affidavit-in-reply, the Department has accepted that the approval obtained is of the "Principal Commissioner of Income-tax-8" and, hence, such an approval would be bad in law. 25. The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, enacted on September 29, 2020 and came into force on March 31, 2020 ([2020] 428 ITR (St.) 29). It, inter alia, provided for a relaxation of certain provisions of the Income-tax Act, 1961. Where any time limit for completion or compliance of an action such as completion of any proceedings or passing of any order or issuance of any notice fell between the period March 20, 20....
X X X X Extracts X X X X
X X X X Extracts X X X X
....hat the proviso to sub-section (1) of the amended section 149 does not even incorporate the whole of pre-amended section 149. It merely makes the time limit prescribed therein applicable to the issuance of notices for reassessment in respect of any assessment year beginning before April 1, 2021. A fortiori the proviso certainly does not incorporate pre-amended section 151 by reference and make it applicable. 14. The next question to be examined is the impact of the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020. Undoubtedly, the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 extended the time limits under specified enactments, including the Income-tax Act. As per clause (a)(ii) of subsection (1) of section 3 thereof, time limits for grant of sanction or approval were also extended. Since the petitioner does not challenge the sanction with respect to the time limit, clause (a) of sub-section (1) of section 3 is immaterial. Indeed, the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020, which extends the time limits for completion of specified tasks up to March 31, 2021, i....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the relevant assessment year (AY) in relation to which such notice has been issued is more than four years prior to the date of the reopening, le., it is beyond four years from the expiry of the assessment year in question and is clearly therefore, time barred in terms of the first proviso to section 147 of the Income-tax Act. 4. The stand of the Revenue that in view of the notifications issued by the Central Government in terms of the provisions of the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020, the said time limits stood extended is clearly untenable as those notifications were issued to deal with the situation arising from the amendment to the Income-tax Act by the Finance Act, 2021 with effect from April 1, 2021 whereas in these cases the notices were issued prior to April 1, 2021. 5. This court had an occasion in similar circumstances to quash an identical notice under section 148 of the Income-tax Act by its order dated November 20, 2019 in Writ Petition (C) No. 7618 of 2009 and which order stood confirmed by this court by the dismissal of the Department's review petition, i. e., RVWPET No. 188 of 2020 by the orde....