TaxTMI 
TaxTMI 
2026 (3) TMI 1756
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....or brevity "Ld. AO"), order passed u/s. 147 r.w.s. 144 r.w.s, 144B of the Act), date of the order 26/03/2023. 2. Brief facts of the case are that the assessee is a salaried individual who filed the return of income under section 139 of the Act, declaring total income of Rs. 7,01,880/-. The assessee claimed deduction of Rs.1,55,330/- under Chapter VI-A of the Act against the gross total income of Rs. 8,57,211/- Subsequently, the Ld. AO initiated reassessment proceedings by issuing notice under section 148 of the Act on the ground that income amounting to Rs. 2,03,816/- had escaped assessment. During the course of assessment proceedings, the assessee could not appear before the Ld. AO. Consequently, the impugned assessment order was passed....
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.... limitation. Therefore, the Ld. AO has wrongly assumed jurisdiction under section 148 of the Act. 4. In support of the above contention, the Ld. AR respectfully placed reliance on the decision of the Coordinate Bench of the ITAT, Mumbai, D-Bench in the case of Manojbhai Parsottambhai Poriya v. ITO (ITA No. 1731/Mum/2025, AY 2017 18, order dated 15.05.2025). The relevant observations of the Coordinate Bench are reproduced hereunder: 3. We have heard the rival submissions. At the outset, it has been mentioned by Ld. AR that since the amount involved in this case is less than Rs. 50,00,000/- and more than three years period has elapsed after AY 2017-18, therefore, the notice u/s 148 could not have been issued on 20.07.2022 i.e. bey....
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....r under consideration is held to be invalid and the consequent assessment order passed under section 147 read with section 144B of the is liable to be quashed. 8. As the assessment orders under section 147 stands quashed, the addition challenged by the assessee on merits becomes infructuous. 4. Respectfully following the decision of the coordinate bench, we hereby hold that the notice u/s 148 issued in this case is invalid as the income that was stated to have escaped assessment as per the reason recorded was less than Rs. 50,00,000/- and therefore, notice u/s 148 could not have been issued beyond the period of three years as per the new law. 5. In the result, the appeal of the assessee is allowed." 5. The Ld. ....
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....e CBDT's circular on the issue. Having said this it is evident that the legal grounds no. 1 to 2 of appeal and similar legal issues vide written submission filed by the appellant are liable to be dismissed." 6. We have heard the rival submissions and perused the material available on record. The assessee filed the return of income under section 139(1) of the Act. Subsequently, the assessment was reopened by the Ld. AO by issuing notice under section 148 of the Act on the ground of alleged escapement of income amounting to Rs. 2,03,816/-, which is below the monetary threshold of Rs. 50 lakhs prescribed under the Act. It is observed that the notice under section 148 was issued on 27.07.2022, which is beyond a period of three years from....