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Krishan Kedia v. Income Tax Officer and Others

Punjab & Haryana HC10 Mar 2025CWP/4789/2024

Case brief

AI extract

What is this about?

Punjab & Haryana High Court sets aside time-barred reassessment: Section 148 notice dated 27.07.2022 and assessment order dated 21.03.2023 (Sections 147, 144, 144B; AY 2014-2015) held barred by limitation; limitation computed under Section 149 as substituted by Finance Act 2021 (six-year limit expiring 31.03.2021, TOLA extension to 30.06.2021) per Union of India Vs. Rajeev Bansal [2024] 469 ITR 46 (SC) and Union of India and Others Vs. Ashish Aggarwal [2022] SCC OnLine SC 543; Taxation and Other Laws (Relaxation of Certain Provisions) Act, 2020; reassessment notice quashed; writ petition allowed.

What did the court decide?

Setting aside of the notice dated 27.07.2022 under Section 148 and the assessment order dated 21.03.2023 under Section 147 of the Income Tax Act, 1961 for AY 2014-2015; pending applications, if any, disposed of.

Krishan Kedia Vs Income Tax Officer and Others — Income Tax | Punjab & Haryana HC (2025)

What the court decided

AI extract

Outcome

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Issue for consideration

Whether the notice dated 27.07.2022 issued under Section 148 of the Income Tax Act, 1961 and the consequential assessment order dated 21.03.2023 under Section 147 read with Sections 144 and 144B of the Income Tax Act, 1961 for Assessment Year 2014-2015 are barred by limitation.

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Court's answer

For AY 2014-2015, the time limit for notice under Section 149 of the Income Tax Act, 1961 as substituted by the Finance Act, 2021 w.e.f. 01.04.2021 expired on 31.03.2018 if issued within three years and on 31.03.2021 if issued within six years; applying TOLA, the period extended only to 30.06.2021.

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Ratio / Principle

Even if the notices for AY 2014-2015 were to be issued within six years, they expired on 31.03.2021, and with TOLA the extended time limit was 30.06.2021; the notice under Section 148 was admittedly issued on 27.07.2022, beyond the extended period, so the notice dated 27.07.2022 under Section 148 and the subsequent assessment order dated 21.03.2023 under Section 147 read with Sections 144 and 144B are barred by limitation in view of the Supreme Court judgment dated 03.10.2024 in Union of India vs. Rajeev Bansal.

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Key takeaways

The present writ petition is allowed and the notice dated 27.07.2022 under Section 148 along with the assessment order dated 21.03.2023 under Section 147 of the Income Tax Act, 1961 for the assessment year 2014-2015 are set aside.ratio¶16

Detailed headnote1 paragraphs

Writ petition (CWP-4789-2024 O&M, decided 10.03.2025, High Court of Punjab and Haryana at Chandigarh, judgment by Sudeepti Sharma, J.) challenging the notice dated 27.07.2022 under Section 148 and the assessment order dated 21.03.2023 under Section 147 read with Sections 144 and 144B of the Income Tax Act, 1961 for Assessment Year 2014-2015 as barred by limitation. Following Union of India Vs. Rajeev Bansal [2024] 469 ITR 46 (SC) (decided 03.10.2024), within the framework of Union of India and Others Vs. Ashish Aggarwal [2022] SCC OnLine SC 543, the Court held that for AY 2014-2015 the time limit under Section 149 (substituted by the Finance Act, 2021 w.e.f. 01.04.2021) expired on 31.03.2018 (three years) or 31.03.2021 (six years), and the TOLA relaxation extended it only to 30.06.2021; the Section 148 notice issued on 27.07.2022 fell beyond the extended period, rendering the notice and the consequential assessment order barred by limitation. Writ petition allowed; notice and assessment order set aside; pending applications disposed of.

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CWP-4789-2024(O&M) - 1-

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IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

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CWP-4789-2024 (O&M) Decided on :- 10.03.2025

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Krishan Kedia ....Petitioner

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VERSUS

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Income Tax Of f icer & Ors

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....Respondents

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CORAM : HON’BLE MR. JUSTICE ARUN PALLI HON’BLE MRS. JUSTICE SUDEEPTI SHARMA

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Present: M r . Nitin Kanwar, Advocate for th e petitioner. M s . Gauri Neo Rampal, Sr. Standi n g Counsel, for the respondents.

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SUDEEPTI SHARMA, J.

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Th e challenge in the present writ p e tition is to notice dated 27.07.2 0 22 under Section 1 48 of Income Tax Act, 1961 a long with assessment order d a ted 21.03.2023 und e r Section 147 read with Sectio n s 144 and 144B of the Income T ax Act, 1961, for t h e Assessment Year 2014-2015.

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BRIEF FACTS

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Th e case of the petitioner pertains t o the Assessment Year 2014-2 0 15. Brief facts of t h e present case as per pleading s in the writ petition are that no t ice dated 06.04.20 2 1 under old Section 148 of the I n come Tax Act, 1961 was issue d to the petitioner f o r the Assessment Year 2014-20 1 5, despite the fact that Section 148

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of the Income T ax Act, 1961 was substituted with new Sections 148 and 1 4 8A w.e.f. 01.04.20 2 1. Notice under Section 142( 1 ) of Income Tax Act, 1961 d a ted 27.11.2021 wa s issued to the petitioner. T h en the case was transferred f r om NeFAC to ReFAC on 08.12.2021. Therefore, again notice under Section 14 2 (1) dated 22.12.20 2 1 of the Income Tax Act, 1961 was issued to the petitio n er. Thereafter, afte r following the procedure as lai d down under the Income Tax A ct, 1961, the asses s ment order dated 24.03.2022 u n der Section 147 read with Sec t ion 144B of the I n come Tax Act, 1961, for the Assessment Year 2014-2015 w as passed. The petitioner filed appeal against the assessment order dated 24.03.2 0 22 before the Co m missioner of Income Tax (App e als), inter alia, on the ground t hat reopening of th e assessment under old Section 1 48 of the Income Tax Act, 196 1 on 06.04.2021 is b a rred by limitation. On 27.05. 2 022, notice under Section 148 A (b) in consequence to judgment passed on 04.05.2 0 22 by the Hon’ble Supreme C o urt in Union of India and Others Vs. Ashish Aggarwal [2022] SCC ONLINE SC 543 was issued The petitioner filed reply to t he same and after considering the reply and after proceeding under Section 148 A (d), order dated 27.07.2022 u n der Section 148A( d ) in consequence to judgment d a ted 04.05.2022 passed by Hon ’ ble Supreme Court in Union of India and Others Vs. Ashish Aggarwal [2022] SCC ONLINE SC 543 was passed . Pursuant ther e to notice dated 27.07.2022 u n der Section 148 of t he Income Tax Act, 1961 was issued to the petitioner. Therea f ter, after following the procedure as laid down un d er the Income Tax Act, 1961 and after consideri n g the reply filed by the p e titioner, assessment order d a ted 21.03.2023 for t he Assessment Year 2014-15 w a s passed.

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He n ce the present petition challe n ging the notice dated 27.07.2 0 22 under Section 1 48 of Income Tax Act, 1961 a long with assessment order d a ted 21.03.2023 und e r Section 147 read with Sectio n s 144 and 144B of the Income T ax Act, 1961, for t he Assessment Year 2014-2015 on the ground that the same are barred by limit a tion.

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SUBMISSIONS

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Le a rned counsel for the petitioner c ontends:a) T hat since notice dated 27.07.2 0 22 issued under Section 148 of the In c ome Tax Act, 1961 was barred b y limitation in view of the co m ing int o force of Finance Act, 2021, therefore, the assessment order u n der Se c tion 147 read with Sections 14 4 and 144B of the Income Tax A ct, 19 6 1 dated 21.03.2023 is also bad i n the eyes of law. b) Further, that controversy in the present writ petition is already set t led by the Hon’ble Supreme Court in the case of Union of India Vs. Rajeev Bansal [2024] 469 ITR 46 (SC) on 03.10.2 0 24. Th e refore, the present writ petitio n be allowed in terms of the set t led pr o position of law in the case of Union of India Vs. Rajeev Bansal (Supra) .

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Le a rned counsel for the respo n dents could not rebut the l e gal proposition of l aw as settled by Hon’ble Sup r eme Court in Union of India Vs. Rajeev Bansal (Supra) , by which the case of t h e petitioner is covered. 6. W e have heard learned counsel fo r the parties and perused the w h ole record of the pr e sent case.

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JOINT READING OF JUDGMENTS OF HON’BLE SUPREME COURT IN UNION OF INDIA AND OTHERS VS. ASHISH AGGARWAL [2022] SCC ONLINE SC 543 AND UNION OF INDIA VS. RAJEEV BANSAL [2024] 469 ITR 46 (SC) CONCLUDES AS UNDER:-

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Th e Finance Act, 2021 substitute d the entire scheme of reassess m ent under Sections 1 47 to 151 of the Income Tax A c t, 1961 w.e.f.01.04.2021. 8. Pri o r to the coming into force o f Finance Act, 2021 initiatio n of reassessment p r oceedings was governed by t h e following provisions of Inc o me Tax Act, 1961:-

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" Income escaping assessment

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147 . If the Assessing Officer has reason to believe that any inc o me ch a rgeable to tax has escaped ass e ssment for any assessment year , he ma y , subject to the provisions of sections 148 to 153, assess or re a ssess such income and also a n y other income chargeable to tax which has escaped assessment and which comes to his notice su b sequently in the course of the p roceedings under this section , or re c omputed the loss or the dep r eciation allowance or any o t her all o wance, as the case may be, f or the assessment year concer n ed (h e reafter in this section and in se c tions 148 to 153 referred to as the rel e vant assessment year): Pr o vided that where an assessme n t under sub-section (3) of sec t ion 14 3 or this section has been made f or the relevant assessment year , no ac t ion shall be taken under this s e ction after the expiry of four y e ars fro m the end of the relevant as s essment year, unless any inc o me

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ch a rgeable to tax has escaped ass e ssment for such assessment yea r by re a son of the failure on the part of the assessee to make a re t urn un d er section 139 or in response t o a notice issued under sub-sec t ion (1) of section 142 or section 14 8 or to disclose fully and truly all material facts necessary for his as s essment, for that assessment ye a r:

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P r ovided further that nothing c o ntained in the first proviso s h all ap p ly in a case where any income in relation to any asset (inclu d ing fin a ncial interest in any entity) located outside India, chargeabl e to ta x , has escaped assessment for an y assessment year:

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P r ovided also that the Assessing O fficer may assess or reassess s u ch in c ome, other than the income inv o lving matters which are the sub j ect matters of any appeal, reference o r revision, which is chargeabl e to ta x and has escaped assessment.

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Ex p lanation 1.-Production before the Assessing Officer of acc o unt bo o ks or other evidence from whi c h material evidence could with d ue dil i gence have been discovered b y the Assessing Officer will not ne c essarily amount to disclosure w ithin the meaning of the foreg o ing pr o viso.

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Ex p lanation 2.-For the purposes o f this section, the following s h all als o be deemed to be cases wh e re income chargeable to tax has es c aped assessment, namely :-

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(a) where no return of i n come has been furnished by the assessee although his total income or the total income of a ny other person in respect of w h ich he is assessable under this Act during the previous year ex c eeded the maximum amount w h ich is not chargeable to income-tax;

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(b) where a return of in c ome has been furnished by the assessee but no assessment h as been made and it is notice d by the Assessing Officer that the assessee has understated the income or has claimed exce s sive loss, deduction, allowanc e or relief in the return;

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(ba) where the assessee has f ailed to furnish a report in res p ect of any international trans a ction which he was so requ i red under section 92E;

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(c) where an assessment has been made, but-

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(i) income chargeable to tax has been underassessed; or (ii) such income has been as s essed at too low a rate; or (iii) such income has been m ade the subject of excessive r e lief under this Act; or

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(iv) excessive loss or dep r eciation allowance or any o t her allowance under this Act ha s been computed;

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(ca) where a return of inc o me has not been furnished by the assessee or a return of income has been furnished by him a nd on the basis of informatio n or document received from the prescribed income-tax aut h ority, under sub-section (2) of

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section 133C, it is noticed by the Assessing Officer that the income of the assessee e x ceeds the maximum amount not chargeable to tax, or as t h e case may be, the assessee has understated the income o r has claimed excessive l o ss, deduction, allowance or reli e f in the return;

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(d) where a person is fo u nd to have any asset (inclu d ing financial interest in any enti t y) located outside India.

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Ex p lanation 3.-For the purpose o f assessment or reassessment u n der thi s section, the Assessing Officer may assess or reassess the inc o me in r espect of any issue, which has e scaped assessment, and such i s sue co m es to his notice subsequently in the course of the proceed i ngs un d er this section, notwithstandi n g that the reasons for such i s sue ha v e not been included in the rea s ons recorded under subsection (2) of s ection 148.

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Ex p lanation 4.-For the removal o f doubts, it is hereby clarified t hat th e provisions of this section, as a mended by the Finance Act, 2 0 12, sh a ll also be applicable for any assessment year beginning on or be f ore the 1st day of April, 2012. Issue of notice where income has escaped assessment

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148. (1) Before making th e assessment, reassessment or re c omputation under section 147, t he Assessing Officer shall serv e on th e assessee a notice requiring hi m to furnish within such period , as ma y be specified in the notice, a r e turn of his income or the incom e of an y other person in respect of which he is assessable under this Act

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du r ing the previous year corresp o nding to the relevant assess m ent ye a r, in the prescribed form and verified in the prescribed ma n ner an d setting forth such other partic u lars as may be prescribed; and the pr o visions of this Act shall, so far as may be, apply accordingly a s if su c h return were a return required to be furnished under section 1 3 9:

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P r ovided that in a case(a) where a return has been furnished during the period commen c ing on the 1st day of October, 199 1 and ending on the 30th da y of Se p tember, 2005 in response to a n otice served under this section, a nd (b) subsequently a notice has be e n served under sub-section (2 ) of se c tion 143 after the expiry of tw e lve months specified in the pro v iso to s ubsection (2) of section 143, a s it stood immediately before the amendment of said sub-section by the Finance Act, 2002 (20 of 2 0 02) bu t before the expiry of the time l i mit for making the assessment, reas s essment or recomputation as s p ecified in sub-section (2) of sec t ion 15 3 , every such notice referred to i n this clause shall be deemed t o be a valid notice:

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Pr o vided further that in a case(a) where a return has been furnished during the period commen c ing on the 1st day of October, 199 1 and ending on the 30th da y of Se p tember, 2005, in response to a notice served under this sect i on, an d

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(b) subsequently a notice has be e n served under clause (ii) of s ubse c tion (2) of section 143 after th e expiry of twelve months speci f ied in the proviso to clause (ii) of s u b-section (2) of section 143, but be f ore the expiry of the time l imit for making the assessm e nt, re a ssessment or recomputation a s specified in sub-section (2) of se c tion 153, every such notice r e ferred to in this clause shall be de e med to be a valid notice.

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Ex p lanation.-For the removal of doubts, it is hereby declared t hat no t hing contained in the first pr o viso or the second proviso s h all ap p ly to any return which has be e n furnished on or after the 1st d ay of O ctober, 2005 in response to a n otice served under this section. (2) The Assessing Officer shall, b e fore issuing any notice under this se c tion, record his reasons for doi n g so.

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Time limit for notice :- 149 . (1) No notice under section 1 48 shall be issued for the rele v ant as s essment year(a) if four years have elapsed fro m the end of the relevant assess m ent ye a r, unless the case falls under cl a use (b) or clause (c); (b) if four years, but not more th a n six years, have elapsed from the en d of the relevant assessment ye a r unless the income chargeabl e to ta x which has escaped assessment a mounts to or is likely to amou n t to on e lakh rupees or more for that y e ar;

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(c) if four years, but not more than sixteen years, have elapsed f r om th e end of the relevant assessmen t year unless the income in rela t ion

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to a ny asset (including financial interest in any entity) located out s ide In d ia, chargeable to tax, has escaped assessment. Ex p lanation.-In determining inco m e chargeable to tax which has es c aped assessment for the purpos e s of this subsection, the provis i ons of Explanation 2 of section 147 shall apply as they apply for the pu r poses of that section. (2) The provisions of sub-section ( 1) as to the issue of notice shal l be su b ject to the provisions of section 151. (3) If the person on whom a notice under section 148 is to be served is a p erson treated as the agent of a n on-resident under section 163 a nd th e assessment, reassessment o r recomputation to be made in pu r suance of the notice is to be ma d e on him as the agent of such n onresident, the notice shall not be is s ued after the expiry of a perio d of six years from the end of the relev a nt assessment year. Ex p lanation.-For the removal of d o ubts, it is hereby clarified that the pr o visions of sub-sections (1) and ( 3), as amended by the Finance A ct, 20 1 2, shall also be applicable for any assessment year beginnin g on or b efore the 1st day of April, 201 2 .

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Sanction for issue of notice :-

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151 . (1) No notice shall be issued under section 148 by an Asses s ing Of f icer, after the expiry of a period of four years from the end o f the rel e vant assessment year, unless t h e Principal Chief Commissione r or Chief Commissioner or Principal Commissioner or Commissioner is

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satisfied, on the reasons recorded b y the Assessing Officer, that it is a fit c ase for the issue of such notice.

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(2) In a case other than a case fall i ng under sub-section (1), no notice sh a ll be issued under section 14 8 by an Assessing Officer, wh o is be l ow the rank of Joint Commissi o ner, unless the Joint Commissi o ner is s atisfied, on the reasons record e d by such Assessing Officer, th a t it is a fit case for the issue of such notice. (3) For the purposes of sub-se c tion (1) and sub-section (2), the Pr i ncipal Chief Commissioner o r the Chief Commissioner or the Pr i ncipal Commissioner or t h e Commissioner or the J o int Co m missioner, as the case may b e, being satisfied on the reasons re c orded by the Assessing Officer a bout fitness of a case for the i s sue of n otice under section 148, need not issue such notice himself." 3.1 In pursuance to the power vest e d under section 3 of the Relaxa t ion Ac t , 2020, the Central Governm e nt issued following Notificat i ons int e r-alia extending the time line s prescribed under section 149 for iss u ance of reassessment notices u n der section 148 of the Income T ax

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Ac t , 1961:

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*Date* *of Notification*	*Original* *lim* *issuance of* *Section 148 of* *itation* *for* *notice under* *the Act*	*Extended Limitation*
31.0 3.2020	20.03.2020 to 29.06.2020	30.06.2020
24.0 6.2020	20.03.2020 to 31.12.2020	31.03.2021
31.0 3.2021	31.03.2021	30.04.2021
27.0 4.2021	30.04.2021	30.06.2021

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Th e Explanations to the Notifica t ions dated 31st March, 2021 a nd 27 t h April, 2021 issued under se c tion 3 of the Relaxation Act, 2 0 20 als o stipulated that the provisi o ns, as they existed prior to the amendment by the Finance Act, 2 0 21, shall apply to the reassess m ent pr o ceedings initiated thereunder. 3. 2 The Parliament introduced ref o rmative changes to sections 14 7 to 15 1 of the Income Tax Act, 1961 g o verning reassessment proceed i ngs by way of the Finance Act, 2021, which was passed on 28th Ma r ch, 20 2 1. The substituted sections 14 7 to 149 and section 151 applic a ble w. e .f. 01.04.2021, passed in the Fi n ance Act, 2021, are as under:- Income escaping assessment-

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"147 . If any income chargeable to tax, in the case of an assessee, has es c aped assessment for any asse s sment year, the Assessing Of fi cer ma y , subject to the provisions of sections 148 to 153, assess or re a ssess such income or recom p ute the loss or the deprecia t ion all o wance or any other allowanc e or deduction for such assess m ent ye a r (hereafter in this section an d in sections 148 to 153 referre d to as t he relevant assessment year). Ex p lanation.-For the purposes of assessment or reassessment or re c omputation under this section, t he Assessing Officer may asses s or re a ssess the income in respect o f any issue, which has esca p ed as s essment, and such issue come s to his notice subsequently in the co u rse of the proceedings under t h is section, irrespective of the f act th a t the provisions of section 148A have not been complied with".

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Issue of notice where income has escaped assessment:-

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148 . Before making the assessme n t, reassessment or recomputa t ion un d er section 147, and subject to the provisions of section 148A, the As s essing Officer shall serve on t h e assessee a notice, along wi t h a co p y of the order passed, if req u ired, under clause (d) of sec t ion 14 8 A, requiring him to furnish wit h in such period, as may be speci f ied in such notice, a return of his i n come or the income of any o t her pe r son in respect of which he is a s sessable under this Act during the pr e vious year corresponding to t h e relevant assessment year, in the pr e scribed form and verified in t he prescribed manner and set t ing forth such other particulars as ma y be prescribed; and the provis i ons of t his Act shall, so far as may be, apply accordingly as if such re t urn we r e a return required to be furnis h ed under section 139:

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P r ovided that no notice under this section shall be issued unless t h ere is information with the Assessin g Officer which suggests that the in c ome chargeable to tax has esc a ped assessment in the case o f the as s essee for the relevant assessm e nt year and the Assessing Of fi cer ha s obtained prior approval of the specified authority to issue s u ch no t ice.

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Ex p lanation 1.-For the purposes o f this section and section 148A, the in fo rmation with the Assessing Of fi cer which suggests that the inc o me ch a rgeable to tax has escaped ass e ssment means-

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(i) any information flagged in the c ase of the assessee for the rele v ant as s essment year in accordance w ith the risk management stra t egy for m ulated by the Board from time to time; (ii) any final objection raised by th e Comptroller and Auditor-Gen e ral of I ndia to the effect that the asses s ment in the case of the assessee for th e relevant assessment year has n ot been made in accordance w ith th e provisions of this Act. Ex p lanation 2.-For the purposes o f this section, where(i) a search is initiated under sect i on 132 or books of account, o t her do c uments or any assets are requ i sitioned under section 132A, o n or aft e r the 1st day of April, 2021, in t he case of the assessee; or (ii) a survey is conducted under s e ction 133A, other than under s ubse c tion (2A) or sub-section (5) of t hat section, on or after the 1st d ay of A pril, 2021, in the case of the as s essee; or (iii ) the Assessing Officer is satis f ied, with the prior approval o f the Pr i ncipal Commissioner or Com m issioner, that any money, bull i on, je w ellery or other valuable articl e or thing, seized or requisitio n ed un d er section 132 or under sectio n 132A in case of any other pe r son on or after the 1st day of April, 20 2 1, belongs to the assessee; or (iv ) the Assessing Officer is sat i sfied, with the prior approva l of Pr i ncipal Commissioner or Commissioner, that any books of acc o unt or documents, seized or requisiti o ned under section 132 or sec t ion 13 2 A in case of any other perso n on or after the 1st day of A p ril, 20 2 1, pertains or pertain to, or a ny information contained ther e in,

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rel a te to, the assessee, the Assessi n g Officer shall be deemed to have in fo rmation which suggests that t he income chargeable to tax has es c aped assessment in the cas e of the assessee for the t h ree as s essment years immediately pre c eding the assessment year rele v ant to the previous year in which t h e search is initiated or book s of ac c ount, other documents or any a ssets are requisitioned or surve y is co n ducted in the case of the asses s ee or money, bullion, jeweller y or ot h er valuable article or thing or b ooks of account or documents are sei z ed or requisitioned in case of a n y other person. Ex p lanation 3.-For the purposes of this section, specified authority me a ns the specified authority refer r ed to in section 151." Conducting inquiry, providing opportunity before issue of notice under section 148 –

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"148A . The Assessing Officer shall, before issuing any notice u n der se c tion 148-

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(a) conduct any enquiry, if req u ired, with the prior approva l of sp e cified authority, with respect t o the information which sugg e sts th a t the income chargeable to tax h as escaped assessment; (b) provide an opportunity of bei n g heard to the assessee, with the pri o r approval of specified author i ty, by serving upon him a notic e to sh o w cause within such time, as m ay be specified in the notice, b e ing no t less than seven days and but n ot exceeding thirty days from the da t e on which such notice is issue d , or such time, as may be exten d ed by him on the basis of an applicati o n in this behalf, as to why a notice

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un d er section 148 should not be i ssued on the basis of informa t ion which suggests that income charg e able to tax has escaped assess m ent in his case for the relevant assessment year and results of enq u iry co n ducted, if any, as per clause (a); (c) consider the reply of assessee f urnished, if any, in response to the sh o w-cause notice referred to in cl a use (b); (d) decide, on the basis of mate r ial available on record inclu d ing re p ly of the assessee, whether or n ot it is a fit case to issue a notice un d er section 148, by passing an order, with the prior approva l of sp e cified authority, within one m o nth from the end of the mont h in which the reply referred to in cla u se (c) is received by him, or w h ere no such reply is furnished, withi n one month from the end of the month in which time or extended time allowed to furnish a repl y as pe r clause (b) expires:

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Pr o vided that the provisions of th i s section shall not apply in a c ase wh e re-

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(a) a search is initiated under sec t ion 132 or books of account, o t her do c uments or any assets are requ i sitioned under section 132A in the ca s e of the assessee on or after the 1st day of April, 2021; or (b) the Assessing Officer is satis fi ed, with the prior approval of the Pr i ncipal Commissioner or Com m issioner that any money, bull i on, je w ellery or other valuable articl e or thing, seized in a search u n der se c tion 132 or requisitioned unde r section 132A, in the case of a ny

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ot h er person on or after the 1st d ay of April, 2021, belongs to the as s essee; or

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(c) the Assessing Officer is satisf i ed, with the prior approval of the Pr i ncipal Commissioner or Com m issioner that any books of acc o unt or documents, seized in a search u nder section 132 or requisitio n ed un d er section 132A, in case of any other person on or after the 1st d ay of A pril, 2021, pertains or pertai n to, or any information contai n ed th e rein, relate to, the assessee. Ex p lanation.-For the purposes o f this section, specified authority me a ns the specified authority refer r ed to in section 151." Time limit for notice –

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"149 . (1) No notice under section 148 shall be issued for the rele v ant

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as s essment year-

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(a) if three years have elapsed fro m the end of the relevant assess m ent ye a r, unless the case falls under cl a use (b); (b) if three years, but not more th a n ten years, have elapsed from the en d of the relevant assessment ye a r unless the Assessing Officer has in his possession books of accou n t or other documents or evid e nce which reveal that the income ch a rgeable to tax, represented in the for m of asset, which has escaped a s sessment amounts to or is likel y to amount to fifty lakh rupees or mor e for that year:

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Pr o vided that no notice under sec t ion 148 shall be issued at any time in a case for the relevant assessm e nt year beginning on or before 1st

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da y of April, 2021, if such notice could not have been issued at t hat ti m e on account of being beyond the time limit specified under the pr o visions of clause (b) of sub-section (1) of this section, as they st o od im m ediately before the commence m ent of the Finance Act, 2021:

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Pr o vided further that the provisions of this sub-section shall not a p ply in a case, where a notice under s e ction 153A, or section 153C read wi t h section 153A, is required to be issued in relation to a se a rch ini t iated under section 132 or bo o ks of account, other document s or an y assets requisitioned under sec t ion 132A, on or before the 31st d ay of M arch, 2021:

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Pr o vided also that for the pur p oses of computing the perio d of li m itation as per this section, the t i me or extended time allowed to the as s essee, as per show-cause notic e issued under clause (b) of sec t ion 14 8 A or the period during which t he proceeding under section 1 4 8A is s tayed by an order or injunction of any court, shall be excluded:

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Pr o vided also that where immedia t ely after the exclusion of the pe r iod re fe rred to in the immediately p receding proviso, the perio d of li m itation available to the Asses s ing Officer for passing an o r der un d er clause (d) of section 14 8 A is less than seven days, s u ch re m aining period shall be extend e d to seven days and the perio d of li m itation under this sub-section shall be deemed to be exten d ed ac c ordingly.

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Ex p lanation.-For the purposes of c lause (b) of this subsection, "as s et" sh a ll include immovable propert y , being land or building or b o th, sh a res and securities, loans and a d vances, deposits in bank accou n t. (2) The provisions of sub-section ( 1) as to the issue of notice shal l be su b ject to the provisions of section 151.'

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Sanction for issue of notice -

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"151 . Specified authority for the p urposes of section 148 and sec t ion 14 8 A shall be-

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(i) P rincipal Commissioner or Pri n cipal Director or Commissione r or Di r ector, if three years or less tha n three years have elapsed from the en d of the relevant assessment yea r ; (ii) Principal Chief Commissione r or Principal Director Genera l or wh e re there is no Principal Chief C ommissioner or Principal Dire c tor Ge n eral, Chief Commissioner or D irector General, if more than t h ree ye a rs have elapsed from the end o f the relevant assessment year. " 9. Despite the substituted Sections 1 4 7 to 151 of the Income Tax A ct, 1961, by the F inance Act, 2021 which cam e into force on 01.04.2021 m a ny reassessment n o tices under Section 148 of the I ncome Tax Act, 1961 were iss u ed to the assessees after coming into force of Fina n ce Act, 2021 i.e. after 01.04.2 0 21, which were ass a iled before different High Co u rts on different grounds. Diffe r ent High Courts q u ashed the reassessment notices under Section 148 of the Inc o me Tax Act, 1961. Union of India challenged the j udgments passed by different H igh Courts setting a side reassessment notices un d er Section 148 of the unamended Income Tax Ac t , which were issued after 01.04 . 2021 i.e. after coming into forc e of TRIPTI SAINI 2025.04.11 09:48 I attest to the accuracy and integrity of this document

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Finance Act, 2 0 21 before the Hon’ble Suprem e Court of India in Union of India and Others Vs. Ashish Aggarwal [2022] SCC Online SC 543 . Hon’ble Supr e me Court partly all o wed the appeals filed by the U nion of India. Relevant portio n of the judgment o f Hon’ble Supreme Court in Union of India and Others Vs. Ashish Aggarwal [2022] SCC Online SC 543 is reprod u ced as under:-

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“ 5 . We have heard Shri N. Ven k ataraman, learned ASG appea r ing on behalf of the Revenue and Shri C .A. Sundaram and Shri S. Gan e sh, learned Senior Advocates and ot h er learned counsel appearing on be h alf of the respective assessee.

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6 . I t cannot be disputed that by substitution of sections 147 to 15 1 of th e Income Tax Act (IT Act) by t h e Finance Act, 2021, radical a nd re fo rmative changes are mad e governing the procedure for re a ssessment proceedings. Amend e d sections 147 to 149 and sec t ion 15 1 of the IT Act prescribe the procedure governing initiatio n of re a ssessment proceedings. Howe v er, for several reasons, the s a me ga v e rise to numerous litigations a nd the reopening were challen g ed int e r alia, on the grounds such as (1) no valid "reason to believe" (2) no tangible/reliable material/in f ormation in possession of the as s essing officer leading to for m ation of belief that income has es c aped assessment, (3) no enquir y being conducted by the asses s ing of fi cer prior to the issuance of n otice; and reopening is based on ch a nge of opinion of the assessing officer and (4) lastly the manda t ory pr o cedure laid down by this Cou r t in the case of GKN Driveshafts

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(India) Ltd. v. Income Tax Officer and ors; (2003) 1 SCC 72 , has no t been followed.

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6.1 Further pre-Finance Act, 2021 , the reopening was permissible for a m aximum period up to six years and in some cases beyond even six ye a rs leading to uncertainty fo r a considerable time. There fo re, Pa r liament thought it fit to amend the Income Tax Act to simplify the ta x administration, ease complian c es and reduce litigation. There fo re, wi t h a view to achieve the said o bject, by the Finance Act, 2 0 21, se c tions 147 to 149 and section 15 1 have been substituted.

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6.2 Under the substituted provisi o ns of the IT Act vide Finance A ct, 20 2 1, no notice under section 148 of the IT Act can be issued wit h out fol l owing the procedure prescribe d under section 148A of the IT A ct. Al o ng with the notice under secti o n 148 of the IT Act, the asses s ing of fi cer (AO) is required to serve t h e order passed under section 1 4 8A of t he IT Act. section 148A of the I T Act is a new provision which i s in th e nature of a condition precede n t. Introduction of section 148 A of th e IT Act can thus be said to b e a game changer with an ai m to ac h ieve the ultimate object of sim p lifying the tax administration, e ase co m pliance and reduce litigation.

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6.3 But prior to pre-Finance Act, 2021, while reopening an as s essment, the procedure of givin g the reasons for reopening an d an op p ortunity to the assessee and t h e decision of the objectives w ere

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re q uired to be followed as per the judgment of this Court in the c ase of G KN Driveshafts (India) Ltd. (s u pra).

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6.4 However, by way of section 1 48A, the procedure has now been str e amlined and simplified. It pro v ides that before issuing any no t ice un d er section 148, the assessing o ff icer shall (i) conduct any enq u iry, if r equired, with the approval of s pecified authority, with respect to th e information which suggests th a t the income chargeable to tax has es c aped assessment; (ii) provide a n opportunity of being heard to the as s essee, with the prior approval o f specified authority; (iii) cons i der th e reply of the assessee furnishe d , if any, in response to the sh o wca u se notice referred to in clause ( b); and (iv) decide, on the basi s of material available on record inc l uding reply of the assessee, a s to wh e ther or not it is a fit case to iss u e a notice under section 148 o f the IT A ct and (v) the AO is required to pass a specific order within the ti m e stipulated.

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6.5 Therefore, all safeguards are provided before notice under sec t ion 14 8 of the IT Act is issued. At ev e ry stage, the prior approval o f the sp e cified authority is required, eve n for conducting the enquiry as p er se c tion 148A(a). Only in a case w h ere, the assessing officer is o f the op i nion that before any notice is i s sued under section 148A(b) an d an op p ortunity is to be given to the a ssessee, there is a requirement of co n ducting any enquiry, the asses s ing officer may do so and con d uct an y enquiry. Thus if the assessin g officer is of the opinion that a ny

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en q uiry is required, the assessing o fficer can do so, however, with the pri o r approval of the specifie d authority, with respect to the in fo rmation which suggests that t he income chargeable to tax has es c aped assessment.

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6.6 Substituted section 149 is the provision governing the time l i mit for issuance of notice under sectio n 148 of the IT Act. The substit u ted se c tion 149 of the IT Act has red u ced the permissible time limit for iss u ance of such a notice to three y ears and only in exceptional c a ses ten years. It also provides further additional safeguards which w ere ab s ent under the earlier regime pr e -Finance Act, 2021.

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7. Thus, the new provisions sub s tituted by the Finance Act, 2 0 21 be i ng remedial and benevolent i n nature and substituted wit h a sp e cific aim and object to prot e ct the rights and interest of the as s essee as well as and the s a me being in public interest, the res p ective High Courts have rig h tly held that the benefit of n ew pr o visions shall be made availabl e even in respect of the proceed i ngs rel a ting to past assessment years , provided section 148 notice has be e n issued on or after 1st April, 2021. We are in complete agree m ent wi t h the view taken by the various H igh Courts in holding so.

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8. However, at the same time, t h e judgments of the several H igh Co u rts would result in no reassess m ent proceedings at all, even i f the sa m e are permissible under the Finance Act, 2021 and as p er

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su b stituted sections 147 to 151 of the IT Act. The Revenue canno t be made remediless and the obje c t and purpose of reassess m ent pr o ceedings cannot be frustrated. It is true that due to a bona f ide mi s take and in view of subsequ e nt extension of time vide var i ous no t ifications, the Revenue issued th e impugned notices under sec t ion 14 8 after the amendment was en fo rced w.e.f. 01.04.2021, under the un a mended section 148. In our vi e w the same ought not to have been iss u ed under the unamended Act a n d ought to have been issued u n der th e substituted provisions of secti o ns 147 to 151 of the IT Act as p er th e Finance Act, 2021. There appe a rs to be genuine nonapplicatio n of th e amendments as the officers of t he Revenue may have been und e r a bo n afide belief that the amendme n ts may not yet have been enfor c ed. Th e refore, we are of the opinion t h at some leeway must be show n in th a t regard which the High Cou r ts could have done so. There fo re, instead of quashing and setting as i de the reassessment notices iss u ed un d er the unamended provision o f IT Act, the High Courts ought to ha v e passed an order construing t h e notices issued under unamen d ed Ac t /unamended provision of the I T Act as those deemed to have been iss u ed under section 148A of th e IT Act as per the new provi s ion se c tion 148A and the Revenue o ught to have been permitte d to pr o ceed further with the reass e ssment proceedings as per the su b stituted provisions of sections 1 47 to 151 of the IT Act as per the Fi n ance Act, 2021, subject to c ompliance of all the proced u ral re q uirements and the defences, which may be available to the

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as s essee under the substituted pro v isions of sections 147 to 151 o f the IT A ct and which may be availabl e under the Finance Act, 2021 a nd in law. Therefore, we propose to modify the judgments and or d ers pa s sed by the respective High Cou r ts as under: -

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(i) The respective impugne d section 148 notices issued to the respective assessees shall b e deemed to have been issued u n der section 148A of the IT Act as substituted by the Finance A ct, 2021 and treated to be sho w -cause notices in terms of sec t ion 148A(b). The respective as s essing officers shall within thirty days from today provide to the assessees the information a nd material relied upon by the Revenue so that the assessees c an reply to the notices within t w o weeks thereafter; (ii) The requirement of con d ucting any enquiry with the p r ior approval of the specified a u thority under section 148A(a) be dispensed with as a one-ti m e measure vis-a-vis those not i ces which have been issued un d er Section 148 of the unamen d ed Act from 01.04.2021 till dat e , including those which have been quashed by the High Courts ; (iii) The assessing officers shall thereafter pass an orde r in terms of section 148A(d) a ft er following the due procedur e as required under section 148A(b) in respect of each of the concerned assessees; (iv) All the defences which may be available to the asse s see under section 149 and/or w hich may be available under the

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Finance Act, 2021 and in la w and whatever rights are avail a ble to the Assessing Officer un d er the Finance Act, 2021 are k ept open and/or shall continue t o be available and; (v) The present order s hall substitute/modify respective judgments and orders passed by the respective High Co u rts quashing the similar notice s issued under unamended sec t ion 148 of the IT Act irresp e ctive of whether they have been assailed before this Court o r not.

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9. There is a broad consensus on the aforesaid aspects amongst the learned ASG appearing on beha lf of the Revenue and the lear n ed Se n ior Advocates/learned couns e l appearing on behalf of the res p ective assessees. We are also of the opinion that if the afore s aid or d er is passed, it will strike a b alance between the rights of the Re v enue as well as the respective assesses as because of a bona f ide be l ief of the officers of the Reven u e in issuing approximately 90 0 00 su c h notices, the Revenue may no t suffer as ultimately it is the pu b lic ex c hequer which would suffer. Th e refore, we have proposed to p ass th e present order with a view avoi d ing filing of further appeals be f ore thi s Court and burden this Court with approximately 9000 app e als ag a inst the similar judgments and orders passed by the various H igh Co u rts, the particulars of some of which are referred to hereinab o ve. W e have also proposed to pass th e aforesaid order in exercise of our po w ers under Article 142 of the Co nstitution of India by holding t hat

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th e present order shall govern, no t only the impugned judgments a nd or d ers passed by the High Court o f Judicature at Allahabad, but s h all als o be made applicable in res p ect of the similar judgments a nd or d ers passed by various High Courts across the country a nd th e refore the present order shall b e applicable to PAN INDIA.

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10. In view of the above and for the reasons stated above, the pre s ent Ap p eals are ALLOWED IN PART. The impugned common judgm e nts an d orders passed by the High C o urt of Judicature at Allahaba d in W. T . No. 524/2021 and other a llied tax appeals/petitions, is / are he r eby modified and substituted as under: -

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(i) The impugned section 1 4 8 notices issued to the respective assessees which were issue d under unamended section 14 8 of the IT Act, which were th e subject matter of writ petit i ons before the various respecti v e High Courts shall be deeme d to have been issued under s ection 148A of the IT Act as substituted by the Finance A ct, 2021 and construed or tre a ted to be show cause notices in terms of section 148A(b). T he assessing officer shall, with i n thirty days from today provid e to the respective assessees in fo rmation and material relied u p on by the Revenue, so that th e assesees can reply to the sh o wcause notices within two we e ks thereafter; (ii) The requirement of co n ducting any enquiry, if requi r ed, with the prior approval o f specified authority under sec t ion

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148A(a) is hereby dispense d with as a one-time measure v isavis those notices which ha v e been issued under section 14 8 of the unamended Act from 0 1 .04.2021 till date, including t h ose which have been quashed b y the High Courts. Even other w ise as observed hereinabove h o lding any enquiry with the p r ior approval of specified author i ty is not mandatory but it is for the concerned Assessing Officer s to hold any enquiry, if require d ; (iii) The assessing officers s h all thereafter pass orders in te r ms of section 148A(d) in re s pect of each of the concer n ed assessees; Thereafter after fo llowing the procedure as requ i red under section 148A may i s sue notice under section 148 (as substituted);

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(iv) All defences which m ay be available to the asse s ses including those available u n der section 149 of the IT Act a nd all rights and contentions which may be available to the concerned assessees and Re v enue under the Finance Act, 2 0 21 and in law shall continue to b e available.

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11 . The present order shall be applicable PAN INDIA and all ju d gments and orders passed by d ifferent High Courts on the i s sue an d under which similar notices w hich were issued after 01.04.2 0 21 iss u ed under section 148 of the Act are set aside and shall be go v erned by the present order and shall stand modified to the af o resaid extent. The present ord e r is passed in exercise of po w ers

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un d er Article 142 of the Constit u tion of India so as to avoid a ny further appeals by the Revenue on the very issue by challen g ing si m ilar judgments and orders, wi t h a view not to burden this C o urt wi t h approximately 9000 appeals. We also observe that present o r der sh a ll also govern the pending writ petitions, pending before various Hi g h Courts in which similar no t ices under Section 148 of the Act iss u ed after 01.04.2021 are under c hallenge.

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12 . The impugned common judgm e nts and orders passed by the H igh Co u rt of Allahabad and the simil a r judgments and orders passe d by va r ious High Courts, more partic u larly, the respective judgments a nd or d ers passed by the various Hi g h Courts particulars of which are me n tioned hereinabove, shall stand modified/substituted to the af o resaid extent only.

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Th e refore, in above referred to ju d gment of Hon’ble Supreme C o urt in case of Union of India and Others Vs. Ashish Aggarwal [2022] SCC Online SC 543l , Hon’ble the Supreme Court held that t he impugned notices under Sec t ion 148 issued to the respective assessees which w e re issued under unamended Sec t ion 148 of the Inc o me Tax Act and were subject matter of writ petitions before the various respective High Courts shall be deeme d to have been issued under Sec t ion 148-A of the I n come Tax Act as substituted by the Finance Act, 2021 an d be construed or treated to be show cause notices i n terms of Section 148A(b). It w as further held th a t the Assessing Officer shall, within 30 days from the dat e of passing of the judgment i.e. 04.05.2022, pr o vide to the respective asses s ees

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information an d material relied upon by the R evenue, so that the Assessees can reply to the sh o w cause notices within 2 wee k s thereafter. It was further hel d by the Hon’ble S u preme Court that the require m ent of conducting any enquir y , if required, with t he prior approval of specified a uthority under Section 148A( a ) is dispensed with as one time measure viz-a-vi z those notices which were iss u ed under Section 148 of the unamended Act from 0 1.04.2021 (Finance Act, 2021) till date i.e. 04.05. 2 022 (Decision in Ashish Agg a rwal). Further that the Asses s ing Officer shall th e reafter pass orders in terms of Section 148A(d) in respect of each of the concerne d assessees and thereafter, after f ollowing the procedure as requ i red under Section 1 4 8A may issue notice(s) under S ection 148 (as substituted). 11. O n 11.05.2022 following the deci s ion in Union of India and Others Vs. Ashish Aggarwal , the Central Board of Dir e ct Taxes issued instructions for the implementation of the decision in Ashish Aggarwal’s case (supra ), wherein it w as clarified that th e judgment in Ashish Aggarwal would apply to all the cases w h ere extended reass e ssment notices were issued, ir r espective of the fact whether s u ch notices were ch a llenged or not. These instructi o ns further stated that reassess m ent notices would “ t ravel back in time to their orig i nal date when such notices wer e to be issued and t h en new Section 149 of the Inc o me Tax Act is to be applied at t hat point.” The i n structions further elaborated t h e mechanism for issuing not i ces under Section 1 48 of the new regime. The A ssessing Officers accordingly a fter considering the replies furnished by the asse s sees passed orders under Sec t ion 148A(d) and s u bsequently notices under Sec t ion 148 of the new regime w ere issued to the a s sessees by the Assessing Offi c ers, between July and Septe m ber 2022, for the A s sessment Year 2013-2014, 201 4 -2015, 2015-2016, 2016-2017 and TRIPTI SAINI 2025.04.11 09:48 I attest to the accuracy and integrity of this document

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2017-2018. T h ese notices were challenged before several High Courts, w ho declared the no t ices to be invalid being time barred and being issued without the appropriate san c tion of the specified authority. 12. In Ashish Aggarwal’s case (supra) Hon’ble Supreme Court did not deal with the is s ue as to whether or not reassess m ent notices were issued within the time limits pre s cribed under the provisions o f Income Tax Act, 1961 read w ith relaxations pro v ided under the Taxation and O ther Laws (Relaxation of Cer t ain Provisions) Ac t , 2020 (TOLA). Different Hig h Courts declared the notices u n der Section 148 of the new regime issued to the a ssessees by the Assessing Offi c ers between July a n d September 2022, for the A ssessment Year 2013-2014, 2 0 142015, 2015-2016, 2016-2017 and 2017-2018 t o be invalid, being time barred and being issued w i thout appropriate sanction of s pecified authority. The same w ere challenged by w ay of filing the appeals bef o re the Hon’ble Supreme Cour t in Union of India and Others Vs. Rajiv Bansal . T he Hon’ble Supreme Court fra m ed the following is s ues in Union of India and Others Vs. Rajiv Bansal :-

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B. Issues

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18. The present batch of appeal s gives rise to the following issu e s:a. Whether TOLA and n o tification issued under it will a lso apply to reassessment notic e s issued after 1 April 2021; and b. Whether the reassess m ent notices issued under Sec t ion 148 of the new regime bet w een July and September 2022 are valid.”

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Be f ore proceeding further it wou l d be appropriate to reproduce the relevant portio n of the judgment passed by the H on’ble Supreme Court in the c ase TRIPTI SAINI 2025.04.11 09:48 I attest to the accuracy and integrity of this document

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of Union of India Vs. Rajeev Bansal [2024] 469 ITR 46 (SC). The sam e is reproduced as u n der :-

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“ii. TOLA

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6. On 24 March 2020, the C e ntral Government announced "a co m plete lockdown for the entir e nation" for twenty-one day s to co n tain the spread of the COVID - 19 pandemic. (14) Following t his, th e Central Government sought to implement various relief meas u res to redress the challenges faced by the taxpayers in meeting the statutory requirements due to the p andemic. (15) On 31 March 2 0 20, th e President of India promulga t ed the Taxation and Other L a ws (R e laxation of Certain Provision s ) Ordinance 2020 (16) to ext e nd ti m e limits for completion or c ompliance of actions under the sp e cified Acts falling for completion or compliance between 20 M a rch 20 2 0 and 29 June 2020 till 30 J une 2020. On 24 June 2020, the Ce n tral Government issued a not if ication under Section 3(1) of the T O LA Ordinance to extend th e time limit for completion or co m pliance of actions under the sp e cified Acts till 31 March 2021. 7. On 29 September 2020, Parli a ment enacted TOLA, which c a me int o force with retrospective effect from 31 March 2020. (18) Sec t ion 2( 1 )(b) defines "specified Act" to mean and include the Income T ax Ac t . Section 3(1) of TOLA extend e d the time limit for completio n or co m pliance of actions under th e "specified Act", which fell for co m pletion or compliance during t h e period from 20 March 2020 a nd

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31 December 2020, to 31 March 2 021. The relevant part of Secti o n 3 re a ds thus:

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"3 ( 1) Where, any time-limit has b een specified in, or prescribe d or no t ified under, the specified Act w h ich falls during the period from the 20 t h day of March, 2020 to the 3 1 st day of December, 2020, or such ot h er date after the 31st day o f December, 2020, as the Central Government, may, by notificatio n , specify in this behalf, for the co m pletion or compliance of such a ction as – (a) completion of any proceedings or passing of any order or issuance of a ny notice, intimation, notifica t ion, sanction or approval, or s u ch ot h er action, by whatever name c a lled, by any authority, commis s ion or tribunal, by whatever name c a lled, under the provisions of the sp e cified Act;

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[... ] An d where completion of compli a nce of such action has not been made within such time, then, the timelimit for completion or co m pliance of such action shall, n otwithstanding anything contai n ed in t he specified Act, stand extende d to the 31st day of March, 2021, or su c h other date after 31st day of March, 2021, as the Central Government may, by notification, sp ecify in this behalf:" 8. S ection 3(1) empowered the Ce n tral Government to extend the time li m it beyond 31 March 2021 by a notification. In pursuance o f its po w ers, the Central Government i s sued the following notification s to ext e nd the period of relaxation til l 30 June 2021: a. Notification N o.

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93 of 2020 dated 31 December 2 020 extended the end date to 30 M a rch 2021. Resultantly, TOLA covered the period between 20 M a rch 2020 to 30 March 2021; b. Notification No. 20 of 2021 d a ted 31 March 2021 specified that 31 A pril 2021 shall be the end dat e of th e time period covered by TO L A. It extended the time limit for co m pletion or compliance of actio n s under the Income Tax Act til l 30 Ap r il 2021; and c. Notification N o . 38 of 2021 dated 27 April 2 0 21 ext e nded the time limit for comple t ion or compliance of actions til l 30 Ju n e 2021.

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9. The effect of TOLA and the notifications issued under the le g islation was that: (i) if the time p rescribed for passing of any o r der or issuance of any notice, sanction, or approval fell for completio n or co m pliance from 20 March 2020 to 31 March 2021; and (ii) if the co m pletion or compliance of suc h action could not be made du r ing th e stipulated period, then the time limit for completion or compliance of s uch action was extended to 30 J une 2021.

xx x xxx xxx xxx

B. Issues

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C. Submissions

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19. Mr N Venkataraman, learn e d Additional Solicitor Genera l of In d ia, made the following submissi o ns on behalf of the Revenue:

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a. Parliament enacted TOL A as a free-standing legislatio n to provide relief and relaxat i on to both the assesses and the Revenue during the time o f COVID- 19. TOLA seeks to r e lax actions and proceedings t hat could not be completed or complied with within the ori g inal time limits specified under the Income Tax Act;

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b. Section 149 of the new re g ime provides three crucial ben e fits to the assesses:

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(i) the four- year time limit f or all situations has been reduced to three years;

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(ii) the first proviso to Sect i on 149 ensures that re-assess m ent for previous assessment yea r s cannot be undertaken beyon d six years; and

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(iii) the monetary threshold of Rupees fifty lakhs will appl y to the reassessment for previou s assessment years; c. The relaxations provided under Section 3(1) of TOLA a p ply "notwithstanding anything contained in the specified Act." Section 3(1), therefore, ove r rides the time limits for issuin g a notice under Section 148 r e ad with section 149 of the Inc o me Tax Act;

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d. TOLA does not extend t h e life of the old regime. It me r ely provides a relaxation for the completion or complianc e of actions following the pro c edure laid down under the n ew regime;

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e. The Finance Act 2021 s ubstituted the old regime for reassessment with a new regi m e. The first proviso to Section 1 49 does not expressly bar the application of TOLA. Section 3 of TOLA applies to the entire I ncome Tax Act, including Sect i ons 149 and 151 of the new r egime. Once the first provis o to Section 149(1)(b) is read wi t h TOLA, then all the notices iss u ed between 1 April 2021 a n d 30 June 2021 pertaining to assessment years 2013-20 1 4, 2014-2015, 2015-2016, 2 0 162017, and 2017-2018 will b e within the period of limitatio n as explained in the tabulation b elow:

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*Assessment* *Year*	*Within 3 years*	*Exp* *Lim* *rea* TO *iry* of *itation* d *with* *LA for*	*Within* *six* *Years*	*Expiry* *Limitation* *read* *TOLA for* *(5)*	of *with* *(4)*
2013-2014	31.03.2017	T app O L A not licable	31.03.2020	30.06.2021
2014-2015	31.03.2018	T app O L A not licable	31.03.2021	30.06.2021
2015-2016	31.03.2019	T app O L A not licable	31.03.2022	T O L A applicable	not
2016-2017	31.03.2020	30. 06.2021	31.03.2023	T O L A applicable	not
2017-2018	31.03.2021	30. 06.2021	31.03.2024	T O L A applicable	not

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f. The Revenue concedes th a t for the assessment year 2015 - 16, all notices issued on or a f ter 1 April 2021 will have to be dropped as they will not fa l l for completion during the pe r iod prescribed under TOLA;

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g. Section 2 of TOLA de fi nes "specified Act" to mean a nd include the Income Tax Act. The new regime, which came i nto effect on 1 April 2021, is now part of the Income Tax A ct. Therefore, TOLA continues t o apply to the Income Tax Act e ven after 1 April 2021; and

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h. Ashish Agarwal (supra) t r eated Section 148 notices issue d by the Revenue between 1 Apr i l 2021 and 30 June 2021 as sh o wcause notices in terms of Section 148A(b). Thereafter, the Revenue issued notices un d er Section 148 of the new regime between July and August 2 0 22. Invalidation of the Section 1 48 notices issued under the n e w regime on the ground that t hey were issued beyond the tim e limit specified under the Inc o me Tax Act read with TOLA w i ll completely frustrate the judi c ial exercise undertaken by this C ourt in Ashish Agarwal (supra). 2 0 . Mr Percy Pardiwalla, Mr V S ridharan, Mr Tushar Hemani, Mr Sa u rabh Soparkar, and Mr K Sh i vram, learned senior counsel, Mr M a nish Shah, Mr Darshan Pat e l, Mr Suhrith Parthasarthy, Mr Dharan Gandhi, and Mr Ved J ain, learned counsel, made the fol l owing submissions on behalf o f the respondents:

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a. TOLA applies only wh e n the period of limitation exp i res between 20 March 2020 an d 31 March 2021. Finance Act 2 0 21 was enacted after TOLA. C onsequently, TOLA only held the field till the new regime came into effect from 1 April 2021. T he Revenue had to issue Secti o n 148 notices in terms of the n ew regime without recourse to t h e extended timelines under TO L A; b. TOLA did not amend th e erstwhile Section 149 but me r ely extended the specified time limits. The first proviso to Sec t ion 149(1)(b) only refers to t h e period of limitation under the erstwhile Section 149(1)(b);

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c. Notification No. 38 of 20 2 1 was issued on 27 April 202 1 to extend the time limits expir i ng under Section 149(1)(b) of the old regime till 30 June 2021 . The notification was issued aft e r 1 April 2021, when the old r eg ime was repealed and substit u ted by a new regime. Therefor e , this notification cannot be r e ad into the new regime;

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d. The notices can be ca t egorized into the following f our categories:

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i. First category: for asses s ment years 2013-2014 and 2 0 142015, the six-year time limit in terms of Section 149 expire d on 31 March 2020 and 31 Mar c h 2021 respectively. However, the reassessment notices were i s sued after 1 April 2021 and w o uld be barred by limitation;

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ii. Second category: for the assessment year 2015-2016, the issue pertains to whether the sanction of the appropr i ate authority was obtained by t h e assessing officers before iss u ing reassessment notices under S ection 148 of the old regime. F or this category of cases, th e four-year period expired on 31 March 2020. However, no t ices were issued after 31 M a rch 2020 by obtaining sanctio n under Section 151(2) instea d of Section 151(1) of the old re g ime; iii. Third category: for asse s sment years 2016-2017 and 2 0 172018, the three-year perio d in terms of the amended regime expired on 31 March 2020 and 31 March 2021, respectively. The notices under Section 1 48 were issued after the expir y of three years, that is, after 1 A pril 2021. However, the sanct i ons were obtained under Sectio n 151(i) instead of Section 151(i i) of the new regime; and

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iv. The directions issued b y this Court in Ashish Agar w al (supra) were not intended to apply to assesses who did not challenge the reassessment notices before the High Court s or this Court. Therefore, reass e ssment proceedings could not have been initiated for such asses s es. e. The applicability of the fi rst proviso to Section 149(1)(b ) of the new regime has to be tes t ed on the date of issuance of notice under Section 148 of the ne w regime. Even if TOLA is read i nto the Income Tax Act, th e time limits for completion or

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compliance of actions can be extended till 30 June 2 0 21. However, the notices under S ection 148 of the new regime w ere issued by the Revenue from J uly to September 2022. The pe r iod of July to September 2022 is beyond the extended time li m its stipulated under the Income Tax Act read with TOLA; f. Ashish Agarwal (supra) c a nnot be interpreted in a manne r to exclude the entire period fr o m April 2021 to September 2 0 22. The directions issued by this Court under Article 142 of the Constitution cannot contr a vene the substantive provis i ons contained in the Income T ax Act. Moreover, this Cour t in Ashish Agarwal (supra) ex p ressly left open all the defe n ces available to the assesses u n der the new regime, including the defence of limitation available under Section 149; and g. TOLA is only applicable to the provisions that specify time limits. Section 151 does n o t prescribe any time limit for the issuance of sanctions by t h e specified authorities. There fo re, TOLA does not apply to Sec t ion 151.

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xx x xxx xxx xxx

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44. We now proceed to analyse th e issues given the broad legislative

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an d judicial background discussed above.

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E. Reading TOLA into the Income Tax Act

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i. First proviso to Section 149(1) of the new regime 45. The first proviso to Section 14 9 (1)(b) provides thus:

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"1 4 9. (1) No notice under section 148 shall be issued for the rele v ant as s essment year, -

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(a) If three years have ela p sed from the end of the rele v ant assessment year, unless the c ase falls under clause (b);

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(b) If three years, but not m ore than ten years, have ela p sed from the end of the rele v ant assessment year unless the Assessing Officer has in p o ssession of books of accoun t or other documents or evide n ce which reveal that the inc o me chargeable to tax, represen t ed in the form of asset, which has escaped assessment amoun ts to or is likely to amount to f ifty lakh rupees or more for that year: Provided that no notice under section 148 shall be issue d at any time in a case for the r elevant assessment year begin n ing on or before 1st day of April 2021, if such notice could not have been issued at that time o n account of being immediately beyond the time limit speci f ied under the provisions of cl a use (b) of sub-section (1) of this section, as they stood immedia t ely before the commencement o f the Finance Act, 2021:"

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(emphasis supplied)

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46 . The ingredients of the proviso could be broken down for anal y sis as f ollows:

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(i) no notice under Section 1 48 of the new regime can be iss u ed at any time for an assessm e nt year beginning on or befo r e 1 April 2021; (ii) if it is bar r ed at the time when the notic e is

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sought to be issued because of the "time limits specified u n der the provisions of" 149(1)(b ) of the old regime. Thus, a notice could be issued under Se c tion 148 of the new regime for assessment year 2021-2022 a nd before only if the time limit for issuance of such notice c ontinued to exist under Sec t ion 149(1)(b) of the old regime.

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47 . In CTO v. Biswanath Jhunjhunwalla, (1996) 5 SCC 626 the Be n gal Sales Tax Rules 1941 emp o wered the Commissioner to re v ise an y assessment within four yea r s from the date of assessm e nt. Su b sequently, the State Governm e nt issued a notification follo w ing th e law to extend the time limit fr o m four years to six years from the da t e of assessment. The extension o f the time limit was challenge d by th e respondents on the ground that the assessments which h ad att a ined finality because of the e xpiry of the period of four y e ars co u ld not be reassessed. This Co u rt observed that it was the c l ear int e ntion of the notification to per m it the Commissioner to revise a ny as s essment made or order passe d, provided the assessment had not be e n made before six years. It was held that if the legislative inten t ion is c lear and the language is unam b iguous, full effect must be give n to th e legislative intention by readi n g the notification as applying not on ly to the incomplete assessmen ts but also to assessments that h ad re a ched finality because of lapse o f the earlier prescribed period. T he pri n ciple that emanates from Bisw a nath Jhunjhunwalla (supra) is t hat th e courts should give full effect to the legislative intention of gran t ing

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re a ssessment powers to assessing officers unless the legislature, by ex p ress provision, states otherwise .

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48 . Notices have to be judged according to the law existing on the da t e the notice is issued. Sectio n 149 of the old regime primarily pr o vided two time limits: (i) fou r years for all situations and (ii) be y ond four years and within six y e ars if the income chargeable to tax which escaped assessment amou n ted to Rupees one lakh or m o re. Aft e r 1 April 2021, the time limit s prescribed under the new regime ca m e into force. The ordinary tim e limit of four years was reduce d to thr e e years. Therefore, in all situa t ions, reassessment notices coul d be iss u ed under the new regime if not more than three years have ela p sed from the end of the relev a nt assessment year. For exam p le, for assessment year 2018-2019, the four year period would have ex p ired on 31 March 2023 unde r the old regime. However, if the no t ice is issued after 1 April 2021, the three year time limit prescribed un d er the new regime will be appli c able. The three year time limit w ill ex p ire on 31 March 2022.

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49. The first proviso to Section 1 4 9(1)(b) requires the determina t ion of w hether the time limit prescribe d under Section 149(1)(b) of the old re g ime continues to exist for the assessment year 2021- 2022 a nd be f ore. Resultantly, a notice und e r Section 148 of the new regime ca n not be issued if the period of si x years from the end of the rele v ant as s essment year has expired at the time of issuance of the notice. T his als o ensures that the new time limit of ten years prescribed u n der

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Se c tion 149(1) (b) of the new r egime applies prospectively. F or ex a mple, for the assessment yea r 2012-2013, the ten year pe r iod wo u ld have expired on 31 Marc h 2023, while the six year pe r iod ex p ired on 31 March 2019. Without the proviso to Section 149(1 ) (b) of t he new regime, the Revenue c o uld have had the power to reo p en as s essments for the year 20122013 if the escaped assess m ent amounted to Rupees fifty lakhs or more. The proviso limits the ret r ospective operation of Section 149(1)(b) to protect the interest s of th e assesses.

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50 . Another important change u n der Section 149(1)(b) of the n ew re g ime is the increase in the mo n etary threshold from Rupees o ne la k h to Rupees fifty lakhs. The ol d regime prescribed a time limit of six years from the end of the rele v ant assessment year if the inc o me ch a rgeable to tax which escaped assessment was more than Ru p ees on e lakh. In comparison, the new regime increases the time limit to ten years if the escaped assessmen t amounts to more than Rupees f ifty

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la k hs. This change could be summ a rized thus:

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*Regime*	*Time Limit*	*Income chargeable to tax* *which* *has* *escaped* *assessment*
Old regime	Four years but more than sixyea not rs	Rupees one lakh or more
New regime	Three years but more than tenye not ars	Rupees fifly lakhs or more

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51 . Given Section 149(1)(b) of th e new regime, reassessment not i ces co u ld be issued after three years o nly if the income chargeable to tax which escaped assessment is m o re than Rupees fifty lakhs. T he

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pr o viso to Section 149(1)(b) limits the retrospectivity of that provi s ion wi t h respect to the time limits specified under Section 149(1)(b) o f the ol d regime.

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52 . In Ashish Agarwal (supra), th i s Court held that the benefit o f the ne w regime must be provided for t he reassessment conducted for the pa s t periods. The increase of the m onetary threshold from Rupees o ne la k h to Rupees fifty lakh is beneficial for the assesses. Mr Ve n kataraman has also conceded on behalf of the Revenue that all no t ices issued under the new re g ime by invoking the six year time li m it prescribed under Section 149 ( 1)(b) of the old regime will hav e to be dropped if the income char g eable to tax which has esca p ed as s essment is less than Rupees fift y lakhs. 53. The position of law which c a n be derived based on the above dis c ussion may be summarized t h us: (i) Section 149(1) of the n ew re g ime is not prospective. It also a p plies to past assessment years; (ii) Th e time limit of four years is n o w reduced to three years for all sit u ations. The Revenue can issu e notices under Section 148 of the ne w regime only if three years or less have elapsed from the en d of th e relevant assessment year; (iii) the proviso to Section 149(1)(b ) of th e new regime stipulates that th e Revenue can issue reassess m ent no t ices for past assessment yea r s only if the time limit surv i ves ac c ording to Section 149(1)(b) o f the old regime, that is, six y e ars fro m the end of the relevant ass e ssment year; and (iv) all not i ces iss u ed invoking the time limit u n der Section 149(1)(b) of the old

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re g ime will have to be dropped if t he income chargeable to tax w h ich ha s escaped assessment is less tha n Rupees fifty lakhs.

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ii. TOLA can extend the time limit till 31 June 2021

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54 . The proviso to Section 149( 1 )(b) of the new regime uses the ex p ression "beyond the time limi t specified under the provision s of clause (b) of subsection (1) of this section, as they stood immediately be f ore the commencement of th e Finance Act, 2021." Thus, the pr o viso specifically refers to the t ime limits specified under Sec t ion 14 9 (1)(b) of the old regime. T h e Revenue accepts that wit h out ap p lication of TOLA, the time l i mit for issuance of reassess m ent no t ices after 1 April 2021 expire s for assessment years 2013-2 0 14, 20 1 4-2015, 2015-2016, 2016-201 7 , and 2017-2018 in the follo w ing manner: (i) f or the assessment years 2013 - 2014 and 2014-2015, the six y ear pe r iod expires on 31 March 202 0 and 31 March 2021 respectiv e ly; an d

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(ii) for the assessment years 2016- 2 017 and 2017-2018, the three y ear pe r iod expires on 31 March 2020 a nd 31 March 2021 respectively. a. Finance Act 2021 substituted the old regime

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62. The purpose of Section 3(1) o f TOLA is to provide relaxatio n of ti m e limits prescribed under the specified Acts, which fell for co m pletion or compliance from 2 0 March 2020 to 31 March 2 0 21. T O LA was enacted in the back d rop of the COVID-19 pande m ic,

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which impeded the functioning o f the government at all levels. T he im p osition of national and local lockdowns created difficulties for the co m mon people, including litigant s and assesses, to comply with t h eir le g al obligations. The COVID19 p a ndemic and the ensuing lockdo w ns re q uired legislatures across the w o rld to dynamically adapt their l a ws an d policies to redress the difficu l ties faced by persons, entities, a nd go v ernmental authorities. (122) The World Bank identified t hat pe r sons and business entities f aced severe financial situat i ons ch a racterised by a lack of cash or easily convertible-to-cash asset s . It su g gested that this would im p act revenue collection bec a use in d ividuals and entities would not b e in a position to pay the asse s sed ta x es. Therefore, the World Bank advised deferral of tax filings a nd pa y ment deadlines to allow indivi d uals and business entities to c o pe wi t h the crisis. (123) Many countr i es across the world have exten d ed de a dlines for filing tax returns. 63. TOLA extended the time limi ts for completion or complianc e of ce r tain actions under the specifi e d Act, which fell for comple t ion du r ing the COVID-19 outbreak. T he use of the expression "any " in Se c tion 3(1) indicates that the rel a xation applies to "all" or "ev e ry" ac t ion whose time limit falls for co m pletion from 20 March 2020 t o 31 M a rch 2021. Section 3(1) is only c oncerned with the performanc e of ac t ions contemplated under the provisions of the specified Acts. Co n sequently, the amendment or s u bstitution of a provision under the sp e cified Acts will not affect the a p plication of TOLA, so long as the

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ac t ion contemplated under the pr o vision falls for completion du r ing th e period specified by TOLA, th a t is, 20 March 2020 to 31 M a rch 20 2 1.

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64 . When enacting a statute, th e legislature often endeavour s to en s ure that the provisions of on e legislation do not conflict w ith pr o visions of another legislation. (125) The purpose of the Inc o me Ta x Act is to levy tax on income an d raise revenues for the functio n ing of the Government. On the other hand, the purpose of TOLA i s to pr o vide relaxation of the time f or completion of any actions or pr o ceedings falling for completio n within a particular period. T h us, th e two enactments operate in sep a rate and distinct fields. This C o urt must ensure that the provisions of the two enactments are interpr e ted ha r moniously unless there is an ir r econcilable conflict between th e m.

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b. Reading TOLA into Section 149 65. Section 3(1) of TOLA applies to the action of "issuance of a ny no t ice" under the Income Tax A c t. The relaxation provided u n der Se c tion 3(1) of TOLA will apply to the issuance of a reassess m ent no t ice under section 148 of the In c ome Tax Act. TOLA did not am e nd th e time limits of four years and si x years from the end of the rele v ant as s essment years as specified un d er the Income Tax Act. It me r ely pr o vided a relaxation of the time period for issuance o f a re a ssessment notice under Sectio n 148. TOLA has no applicatio n in sit u ations where the time limit s p ecified under Section 149 exp i red be f ore 20 March 2020. The effe c t of TOLA is that at the tim e of

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iss u ance of a reassessment notice u nder Section 148, the Revenue has to d etermine two things: (i) the time limit specified under Section 149; an d (ii) the extent of relaxat i on provided by TOLA and its no t ifications for issuance of noti c es. Thus, although TOLA did not amend section 149 of the Incom e Tax Act, it has to be read w ith Se c tion 149 to determine the time limit for issuance of a notice. T his wa s the legislative intent behi n d the enactment of TOLA. F or instance, the six year time limit fo r assessment year 2013- 2014 u n der Se c tion 149(1)(b) of the old regim e expired on 31 March 2020. T O LA ext e nded the period for issuing n o tice until 30 June 2021, given the di ff iculties that arose because of the COVID-19 pandemic. 66 . Section 3(1) of TOLA allowed the Central Government to specify by notification "such other date a ft er the 31st day of March, 2021 " as th e time limit for completion or c o mpliance of any action under the sp e cified Acts. The provision also empowered the Central Government to specify different da t es for completion or complianc e of di ff erent actions. The notifications dated 31 March 2021 and 27 A p ril 20 2 1 extend the operation of TO L A by providing an extended time li m it for completing actions unde r the Income Tax Act till 30 Ju ne 20 2 1.

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67. Section 2(1)(b)(ii) of TOLA d ef ines `specified Act' to include the In c ome Tax Act. After 1 April 20 2 1, Section 2(1)(b)(ii) must be r e ad to m ean the Income Tax Act as am e nded by the Finance Act 2021. T he su b stitution of Sections 147 to 151 will not affect the purpos e of

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T O LA, which is, to provide relaxa t ion of the time limit for comple t ion or compliance of any actions f a lling for completion between 20 M a rch 2020 and 31 March 2021. TOLA will continue to apply to the In c ome Tax Act after 1 April 2 021 if any action or procee d ing sp e cified under the substituted pr o visions of the Income Tax Act fa lls for completion between 20 March 2 020 and 31 March 2021. 68. After 1 April 2021, the Incom e Tax Act has to be read along w ith th e substituted provisions. The substituted provisions a p ply ret r ospectively for past assessme n t years as well. On 1 April 2 0 21, T O LA was still in existence, and t h e Revenue could not have ign o red th e application of TOLA and its n o tifications. Therefore, for issui n g a re a ssessment notice under Secti o n 148 after 1 April 2021, the Re v enue would still have to look a t: (i) the time limit specified u n der Se c tion 149 of the new regime; a n d (ii) the time limit for issuanc e of no t ice as extended by TOLA and it s notifications. The Revenue ca n not ext e nd the operation of the old la w under TOLA, but it can certa i nly be n efit from the extended time li m it for completion of actions fal l ing for completion between 20 March 2 020 and 31 March 2021.

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xx x xxx xxx xx x

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G. Conclusions 114. In view of the above discussio n , we conclude that:

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a. After 1 April 2021, the In c ome Tax Act has to be read al o ng with the substituted provisio n s;

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b. TOLA will continue to a p ply to the Income Tax Act aft e r 1 April 2021 if any action o r proceeding specified under the substituted provisions of the Income Tax Act falls for completion between 20 Mar c h 2020 and 31 March 2021; c. Section 3(1) of TOLA o v errides section 149 of the Inc o me Tax Act only to the extent o f relaxing the time limit for issuance of a reassessment notice un d er Section 148;

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d. TOLA will extend the time limit for the grant of sanctio n by the authority specified unde r Section 151. The test to deter m ine whether TOLA will apply t o Section 151 of the new regim e is this: if the time limit of three years from the end of an assessment year falls betw e en 20 March 2020 and 31 M a rch 2021, then the specified a u thority under Section 151(i) has extended time till 30 June 2 0 21 to grant approval; e. In the case of Section 151 of the old regime, the test is: i f the time limit of four years from the end of an assessment year fa lls between 20 March 2020 an d 31 March 2021, then the speci f ied authority under Section 151 ( 2) has extended time till 31 M a rch 2021 to grant approval;

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f. The directions in Ashish A garwal (supra) will extend to all the ninety thousand reasses s ment notices issued under the old regime during the period 1 A pril 2021 and 30 June 2021; g. The time during which the show cause notices were dee m ed to be stayed is from the dat e of issuance of the deemed no t ice

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between 1 April 2021 an d 30 June 2021 till the suppl y of relevant information and m a terial by the assessing officer s to the assesses in terms of the directions issued by this Court in Ashish Agarwal (supra), an d the period of two weeks allowe d to the assesses to respond to th e show cause notices; and h. The assessing officer s were required to issue the reassessment notice under S e ction 148 of the new regime wi t hin the time limit surviving un d er the Income Tax Act read w ith TOLA. All notices issued b ey ond the surviving period are time barred and liable to be set a s ide;

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CONCLUSION

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Th e present case pertains to the y e ar 2014-2015. A perusal of t a ble referred to in P a ra 19(e) of the judgment of H o n’ble the Supreme Court in Union of India Vs. Rajeev Bansal (Supra) , as referre d to above, shows that the time l i mit for notice, as p r escribed under Section 149 of t h e Income Tax Act, 1961, whic h is substituted by t he Finance Act, 2021 w.e.f. 01.04.2021 for the assessment y ear 2014-2015 wo u ld expire on 31.03.2018 if it is to be issued within three years a nd would expire o n 31.03.2021 if it is to be issued within six years. Further, if ex p iry of limitation r ead with TOLA is taken, t h en the period would expire on 30.06.2021. If t h e period of three years is take n , that would expire on 31.03.2 0 18. And till 31.03. 2 018, TOLA was not applicable since TOLA came into force w . e.f. 31.03.2020. Se c tion 2 (1) (b) defines “Specifie d Act” to mean and include Inc o me Tax Act. Section 3 (1) of TOLA extended the time limit for completio n or compliance of action under the “Specified A ct”, which fell for completio n or TRIPTI SAINI 2025.04.11 09:48 I attest to the accuracy and integrity of this document

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compliance du r ing the period from 20.03.20 2 0 and 31.12.2020 to 31.03.2 0 21. Section 3 (1) e m powered the Central Governm e nt to extend the time limit bey o nd 31.03.2021 and the same was extended up to 30.06.2021. 15. In view of the judgment passed b y Hon’ble the Supreme Cour t in Union of India Vs. Rajeev Bansal (Supra), e v en if the notices for the assess m ent year 2014-2015 were to be issued within six ye a rs, the same expired on 31.03.2 0 21 and if after the expiry of 31.03.2021, TOLA is to be applied, it extended the t i me limit till 30.06. 2 021. Admittedly, in the prese n t case, notice under Section 14 8 of the Income T a x Act, 1961 was issued on 2 7.07.2022, which is beyond the extended perio d . Therefore, the notice dated 2 7.07.2022 under Section 148 a nd subsequent ass e ssment order dated 21.03.20 2 3 under Section 147 read w ith Sections 144 a n d 144B of the Income Tax Act, 1961 would be barred by limita t ion in view of the j u dgment dated 03.10.2024 pass e d by Hon’ble the Supreme Cou r t in Union of India vs. Rajeev Bansal (Supra).

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In v iew of the above, the present writ petition is allowed and no t ice dated 27.07.20 2 2 under Section 148 along with assessment order dated 21.03.2 0 23 under Section 1 4 7 of the Income Tax Act, 1961 for the assessment year 2014-2 0 15 are, hereby, set a side.

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