S. 148A : Reassessment-Conducting inquiry, providing opportunity before issue of notice-Following the ratio in UOI v. Rajeev Bansal [2024] 167 taxmann.com 70 (SC) the time limit for issue of notice was extended only up to 30-6-2021- Assessment year 2013-14 the notice was issued on 29-7-2022, for the Assessment year 2014 -15 the notice was issued on 31-7-2022 and for the Assessment year 2015-16 the notice was issued on 28-7-2022-All the notices are barred by limitation-Reassessment is quashed. [S. 147, 148, 148A(b), 148A(d) , 149(1), TOLA, S. 2, 3]
The Assessment year 2013-14 was reopened by the jurisdictional Assessing Officer by issue of notice u/s 148 on 23-4 -2021 on the basis of judgement in the case of UOI v. Ashish Agarwal (2022)444 ITR 1/286 Taxman 183 (SC) on the ground that notice issued under old law during the period 1-4 -2021 to 30 -6 -2021 under old law deemed to be show cause notice issued under section 148A(b) of the Act under the new law. The AO has provided the information material relied upon the issue of notice under section 148 to the assessee on 28-5-2022 under section 148A(b) of the Act and order under section 148A(d) was passed and notice under section 148 was also issued on 29-7-2022. Similar notice was issued for the Assessment year 2014 -15 on 31-7-2022 and for the Assessment year 2015-16 on 29-7-2022. For the Assessment year 2013 -14 The learned CIT(A) quashed the notice relying on Seimens Services Pvt. Ltd. v. Dy. CIT (2023) 457 ITR 647 (Bom.)(HC) For the Assessment year 2014 -15 notice was quashed relying on Godrej Industries Ltd. v. ACIT [2024] 160 taxmann.com 13 / 338 CTR 25 (Bom.)(HC). For the Assessment 2015-16 the notice was quashed relying on the decision in the case of Hexware Technologies Ltd v. ACIT [2024] 162 taxmann.com 225 / 464 ITR 430 / 338 CTR 536 (Bom.)(HC) and held that notice issued u/s.148 have been issued beyond the time limit of six years which had expired on 31/03/2022 and the notice has been issued after the due date. On appeal by the Revenue , the ITAT relying on the judgement of the Supreme Court in UOI v. Rajeev Bansal [2024] 167 taxmann.com 70 (SC), referred para 19 (f) of the judgement wherein the Revenue concedes that for the A.Y.2015- 16, all notices issued on or after 1 April 2021 will have to be dropped as they will not fall for completion during the period prescribed under TOLA. Further, for the A.Y. 2013-14 and 2014-15 Revenue has accepted that the expiry of the limitation (TOLA) will expire on 30/06/2021. In para 54 the Supreme Court explained the extension of TOLA time limit till 30-6-2021 . After analysing the ratio of the judgement in Rajeev Bansal (Supra), the Tribunal held that in all instances for the relevant assessment years under question the time limit was extended only up to 30-6-2021 for issue of notice under section 148 of the Act . Accordingly on the facts of the case for the Assessment year 2013-14 the notice was issued on 29-7-2022, for the Assessment year 2014-15 on 31-7-2022 and for the Assessment year 2015 -16 the notice was issue on 28-7-2022. Thus all the years referred above the original time limit for six years for the Assessment year 2013-14 was up to 30-3-2020, for Assessment year 2014-15 it was 31-3-2021 and for AY. 2015 -16 it was 31-3-2022. Even under TOLA the time limit for issuance of notice has expired on 30-6-2021 as conceded by the Revenue before the Supreme Court . Accordingly the notice u/s. 148 for the AY. 2015-16 has been issued on 28/07/2022 which is admittedly barred by limitation under the new provision of Section 149(1) and it is not covered under TOLA. Accordingly, all the notices are quashed being barred by limitation .Accordingly the Tribunal held that issue involved was squarely covered by the judgment of the Hon’ble Supreme Court in the case of Shri Rajeev Bansal (Supra),therefore, the same has been decided on the principle laid down by the Hon’ble Supreme Court. (AY. 2013-14, 2014-15, 2015-16)(ITA No. 4812/Mum/2024 / ITA No.4814/Mum/2024 / ITA No.4816/Mum/2024 dt. 7-11-2024).
ITO v. Pushpak Realities Pvt. Ltd. (Mum.)(Trib.) www.itatonline.org (Source : Hon’ble Shri Amit Shukla, Judicial Member & Hon’ble Shri Girish Agrawal, Accountant Member)