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Judgment
PER VIKAS AWASTHY, JUDICIAL MEMBER:
This appeal by the assessee directed against assessment order dated 23.12.2024 passed u/s.147 r.w.s. 144C(13) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’), for AY 2015-16.
Shri Harsh M Kapadia, appearing on behalf of the assessee assailing validity of assessment order on legal issue by way of ground no. 5 & 6 of appeal submits, that the notice issued u/s.148 of the Act dated 11.04.2022 is time barred. Hence, reassessment proceedings initiated against the assessee are without jurisdiction. The Id. Counsel pointed that the assessment for AY 2015-16 was reopened vide notice u/s.148 of the Act dated 11.04.2022 (at page 70 of the paper book). As per the decision rendered by the Hon'ble Supreme Court of India in the case of Rajeev Bansal, reported as 167 taxmann.com 70/469 ITR 46, the said notice is time barred.
Per contra, Shri M.S. Nethrapal, representing the department vehemently defended the validity of notice u/s.148 of the Act and impugned order. However, the ld. DR did not dispute the date of issuance of notice u/s.148 of the Act to the assessee for AY 2015-16.
Both sides heard. The short issue for consideration in the present appeal is validity of notice u/s.148 of the Act. Undisputedly, notice u/s.148 of the Act was issued by the Assessing Officer (AO) to the assessee on 11.04.2022. In the case of Union of India and Others vs. Rajeev Bansal (supra), the Additional Solicitor General of India (ASG) made following submissions:-
e. The Finance Act 2021 substituted the old regime for re-assessment with a new regime. The first proviso to Section 149 does not expressly bar the application of TOLA. Section 3 of TOLA applies to the entire Income-tax Act, including Sections 149 and 151 of the new regime. Once the first proviso to Section 149(l)(b) is read with TOLA, then all the notices issued between 1 April 2021 and 30 June 2021 pertaining to assessment years 2013-2014, 2014-2015, 2015-2016, 2016-2017, and 2017-2018 will be within the period of limitation as explained in the tabulation below:
Assessment Year Within 3 Years Expiry of Limitation read with TOLA for (2) Within six Years Expiry of Limitation read with TOLA for (4) (1) (2) (3) (4) (5) 2013-2014 31-3-2017 TOLA not applicable 31-3-2020 30-6-2021 2014-2015 31-3-2018 TOLA not applicable 31-3-2021 30-6-2021 2015-2016 31-3-2019 TOLA not applicable 31-3-2022 TOLA not applicable 2016-2017 31-3-2020 30-6-2021 31-3-2023 TOLA not applicable 2017-2018 31-3-2021 30-6-2021 31-3-2024 TOLA not applicable f. The Revenue concedes that for the assessment year 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;”
(Emphasized by us)
In view of the aforesaid statement made by the ASG, the notice issued u/s.148 of the Act for reopening assessment for AY 2015-16 is time barred. Therefore, the assessment order passed consequent to said notice is without jurisdiction.
In light of undisputed facts and the decision of Hon’ble Supreme Court of India, we hold that the notice u/s.148 of the Act dated 11.04.2022 and consequent assessment proceedings arising there from are without jurisdiction, hence, quashed.
In the result, appeal of the assessee is allowed.