TaxTMI 
TaxTMI 
2026 (10) TMI 418
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....ed. Thereafter, a search and seizure action was carried out u/s 1321 of the Act in the case of Sanjay Singhal Group of cases on 15.11.2017. The assessee was also searched being part of the group and jurisdiction over the assessee was transferred to Central Circle. Thereafter, notice for the year under appeal was issued u/s 153A on 04.04.2019. In response the assessee filed the return of income on 24.04.2019 declaring same income as was declared in the return filed u/s 139(1) of the Act. The Assessing Officer passed the order wherein it is alleged that the assessee has taken accommodation entry of Rs. 70,00,000/- from M/s Ujjawal Merchandise Pvt. Ltd. and, accordingly total income was assessed at Rs. 70,47,970/-. 3. Against the said order, the assessee filed the appeal before the Ld. CIT(A) who vide order dated 22.06.2020 allowed the appeal of the assessee by placing reliance on the judgments of the Hon'ble Delhi High Court in the case of CIT vs. Kabul Chawla reported in (2016) 380 ITR 573 (Delhi) by holding that no incriminating material was found as a result of search and thus no addition could be made for the alleged accommodation entry in the order passed u/s 153A of the Act.....
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....tion of reassessment proceedings u/s 147 of the Act. 7. Before us, the Ld. AR for the assessee submits that the notice u/s 148 was though issued on 31.03.2021, however, the said notice was served upon the assessee on 1st April, 2021. For this, the assessee has filed the copy of screen shot of e-filling portal of the assessee wherein it is appearing that notice u/s 148 was issued on 1st April, 2021 and the same was served upon on 31.03.2021. Ld. AR submits that it is not possible that the notice issued on 1st April, 2021 could be served on 31.03.2021. He thus submits that the notice u/s 148 of the Act was in fact issued in 31.03.2021 and served upon the assessee through e-filing portal on 01.04.2021 and was never served upon the assessee up to 31.03.2021, therefore, as per the judgment of Hon'ble Supreme Court in the case of Union of India vs. Ashish Agarwal reported in 445 ITR 05, The said notice should be treated as the deemed notice u/s 148A(b) of the Act and proceedings u/s 148A should have been completed before the issue of notice u/s 148 which has not been done in the instant case. Ld. AR therefore, submits that the entire reassessment proceedings concluded are invalid and ....
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..... DR vehemently supported the orders of lower authorities and submits that though the addition made in the order passed u/s 153A of the Act was deleted however, it was deleted for the reason that no incriminating material was found/seized as a result of search indicating the loan taken from M/s Ujjawal Merchandise Pvt. Ltd. as unexplained credit. He further submits that fact remain that the assessee has failed to prove the creditworthiness of the said loan. The Ld. Sr. DR further submits that Hon'ble Supreme Court in the case of Pr. CIT v. Abhisar Buildwell (P.) Ltd. [2023] 149 taxman.com 399 (SC) while confirming the order of the Hon'ble Delhi High Court in the case of Kabul Chawla (supra) has held that though no addition could be made in absence of any incriminating material, however liberty was granted to the Revenue to take necessary remedial action in the respective cases. He, therefore, submits that the AO has rightly initiated the proceedings u/s 147 of the Act and requested for the confirmation of the same. 9. Heard both the parties and perused the materials available on record. It is true that in the instant case the reason for which the proceedings u/s 148 were initiat....
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....sment has to be based on fulfilment of certain pre -condition and if the concept of 'change of opinion' is removed, then, in the garb of re-opening the assessment, the review would take place. One must treat the concept of 'Change of opinion' as an in-built test to check abuse of power by the assessing officer." 11. Once this evidence has already been available on record and one of the plausible views was taken, therefore, revisiting the same facts is nothing but mere change of opinion. Therefore, the reassessment proceedings initiated based on same material which was available before the AO as a result of assessment proceedings conducted u/s 143(3) is mere change of opinion and an attempt to unsettle the issue which has already been settled. Under these circumstances, by respectfully following the judgement of hon'ble apex court in the case of Kelvinator of India Ltd. (supra) we are of the considered opinion that the reopening in the instant case is not based on fresh material and is mere change of opinion. Accordingly, the notice issued u/s 148 is hereby quashed. 12. It is further observed that the notice u/s 148 was dated 31.03.2021, but as per the copy of screen shot of e....
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....he old regime for re-assessment with a new regime. The first proviso to Section 149 does not expressly bar the application of TOLA. Section 3 of TOLA applies to the entire Income Tax Act, Including Sections 149 and 151 of the new regime. Once the first proviso to Section 149(1)(b) is read with TOLA, then all the notices issued between 1 April 2021 and 30 June 2021 pertaining to assessment years 2013-2014, 2014-2015, 2015-2016, 2016-2017, and 2017-2018 will be within the period of limitation as explained in the tabulation below: Assessment year (1) Within 3 Years (2) Expiry of Limitation read with TOLA for (2) (3) Within six Years (4) Expiry of Limitation read with TOLA for (4) (5) 2013-2014 31.03.2017 TOLA not applicable 31.03.2020 30.06.2021 2014-2015 31.03.2018 TOLA not applicable 31.03.2021 30.06.2021 2015-2016 31.03.2019 TOLA not applicable 31.03.2022 TOLA not applicable 2016-2017 31.03.2020 30.06.2021 31.03.2023 TOLA not applicable 2017-2018 31.03.2021 30.06.2021 31.03.2024 TOLA not applicable f. The Revenue concedes that for the assessment year 2015-16, all notices issued on or ....
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....Category 'C': The petitions challenging Notices falling under category. C' which were digitally signed on 31st of March 2021 to the JAOs to verify and determine the date and time of despatch as recorded in the ITIBA portal in accordance with the law laid down in the of issuance. If the date and time of despatch recorded is on or before 1st of April, 2021, the Notices are in be considered as show cause notes under Section 1464 (b) as per the directions of the apex Court in the Ashish Agarwal (Supra) judgment. 31.4. Category 'D': The petitions challenging Notices falling under category D' which were only uploaded in the E-filing portal of the assesses without any re alert, are disposed of with the direction to the JAOs to determine the date and time when the assessee's viewed the Notices in the E-f-ling portal, as recorded in the ITBA portal and conclude such date as the date of issuance in accordance with the law laid down in this judgment. If such date of issuance is determined to be on or after 1st of April 2021, the Notices will be construed as issued under Section 1484 (b) of the Act of 1961 as per the Ashish Agarwal (Supra) judgment. 31.5 Category 'E':....
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....tated above, the present Appeals are ALLOWED IN PART. The impugned common judgments and orders passed by the High Court of Judicature at Allahabad in WT. No. 624/2021 and other allied tax appeals/petitions, is/are hereby modified and substituted as under:- (1) The impugned section 148 notices issued to the respective assessee's which were issued under unamended section 148 of the IT Act, which the subject matter of wit petitions before the various respective High Courts shall be deemed to have been issued under section 148A of the IT Act as substituted by the Finance Act, 2021 and construed or treated to be show cause notices in terms of section 148A(b) The assessing officer that within thirty days from today provide to the respective assessee's information and material relied upon by the Revenue, so that the assessee's can reply to the show-cause notices within two weeks thereafter; (ii) The requirement of conducting any enquiry, if required, with the prior approval of specified authority under section 148A(a) is hereby dispensed wit as a one-time measure vis-à-vis those notices which have been issued under section 148 of the unamended Act from 1-4-2021 ti....