A search was conducted in the case of SMC Group alleging that group entities had obtained accommodation entries and that assessee had availed a loan from a suspected shell entity. Accordingly, the Assessing Officer initiated proceedings under section 148A. Assessing Officer passed an order under section 148A(d) and issued notice under section 148 on 30-08-2024.On writ, the Court held that clause (a) of the proviso to section 148A was inapplicable as the assessee was not one of the entities that was searched. Further, there was no material on record to establish that books of account, documents, other material or assets had been found, which either belonged to the assessee or contained information pertaining to the assessee, during the search conducted on SMC Group. Court held that the condition as stipulated under clause (c) of the proviso to section 148A was not satisfied, and this was not a case where a notice under section 153C could have been issued. Further, the question whether a notice could be issued under section 148 was required to be determined on the basis of whether such notice could have been issued under provisions as in force prior to 01-04-2021. Additionally, since notice was issued beyond the period of six years from the end of the relevant assessment year, said notice was barred by limitation in terms of the first proviso to section 149(1). Since SLP was squarely covered by the judgment of SC in Union of India v. Rajeev Bansal [2024] 167 taxmann.com 70 (SC), the assessee will be governed by the reasons discussed in said judgment; SLP of revenue dismissed.\u00a0 (AY. 2016-17)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 149: Reassessment-Time limit for notice-Search-Notice was issued beyond the period of six years from the end of the relevant assessment year; said notice was barred by limitation in terms of the first proviso to section 149(1)-SLP dismissed. [S. 132, 148, 148A(b), 148A(d), Art. 136]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-65331","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-gZJ","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/65331","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=65331"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/65331\/revisions"}],"predecessor-version":[{"id":65332,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/65331\/revisions\/65332"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=65331"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=65331"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=65331"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}