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Judgment
PER MAHAVIR SINGH, VP:
These appeals by the assessee are emanating from the respective orders of the Ld. Commissioner of Income Tax (Appeals-29), New Delhi relating to assessment years 2017-18. Since common issues have been raised in both the appeals, thus, we are dealing with the facts of Assessment year 2014-15 as a lead case by passing a consolidated order for the sake of convenience.
The assessee has raised as many as 16 Grounds of Appeal, but Ld. AR has only argued the following Ground no. 2 which is legal in nature:-
“2.On the facts and circumstances of the case, the Ld. CIT(A) erred in law and facts by disregarding the facts that the impugned proceedings are barred by limitation as prescribed under section 149 of the Act thus rendering the entire proceedings and consequential additions unsustainable in law and liable to be quashed/deleted.”
The brief facts of the case are that the assessee filed its return of income u/s. 139(1) of the Act for the year under consideration i.e. AY 2014-15 on 31.3.2015 declaring total income NIL. Thereafter, assessment u/s. 147 of the Act has been completed on 21.03.2025 at assessed income of Rs. 34,77,060/-after making addition of Rs. 34,77,056 u/s. 69C of the Act. Against the same, assessee preferred the appeal before the Ld. CIT(A) who dismissed the appeal of the assessee. Being aggrieved the order of the Ld.CIT(A) the assessee is in appeal before the Tribunal.
Ld. AR for the assessee has raised the legal issue and stated that the limitation proceedings are barred by limitation and thus void ab initio. It was submitted that the notice u/s. 148 of the Act was issued on 20.03.2024 for AY 2014-15 & 2015-16. It was further contended that alleged income escaped assessment is only Rs. 34,77,056/- for AY 2014-15 & Rs. 49,79,231/- for Ay 2015-16 which is less than Rs. 50 lacs, which falls within the three year time limit prescribed under section 149(1)(a) of the Act, because as per the provisions of Section 149(1)(b) (as amended by Finance Act, 2021), the permissible time limit for issuance of notice for AY 2014-15 & AY 2015-16 has been expired. As per the directions issued by the Hon’ble Supreme Court in the case of UOI vs. Rajeev Bansal (Civil Appeal No. 8629 of 2024), it has been clarified that if the statutory period of three years from the end of the relevant assessment year was to expire within 20.03.2020 to 30.06.2021, then such notices issued under the old regime during that period shall be treated as valid if reissued under the new regime within the “surviving time”. Accordingly, in the present case, since the income escaped assessment is less than Rs. 50 lacs, the period of three years from the end of AY 2014-15 & 2015-16 has been expired, hence, the case squarely falls within the category governed by the Hon’ble Supreme Court’s decision in the case of UOI vs. Rajeev Bansal (supra). Since the notice under section 148 was issued only on 20.03.2024 is time-barred and therefore invalid and thus the assessment orders deserves to be annulled.
Ld. DR relied upon the orders of the authorities below.
We have heard the rival contentions and perused the records. we find considerable cogency in the contention of the Ld. AR that notice u/s. 148 of the Act was issued on 20.3.2024 for AY 2014-15 & 2015-16, relying on the relaxation under the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (TOLA) and the alleged income escaped assessment is only Rs. 34,77,056 & Rs. 49,79,231/- for AY 2014-15 & AY 2015-16 respectively which is less than Rs. 50 lacs, thus, falls within the three year time limit prescribed under section 149(1)(a) of the Act. Accordingly, in the present case, since the income escaped assessment is less than Rs. 50 lacs, hence, the case squarely falls within the category governed by the Hon’ble Supreme Court’s decision in the case of UOI vs. Rajeev Bansal (supra). Respectfully following the decision of the Hon’ble Supreme Court, as aforesaid, we hold that the notice issued u/s 148 of the Act on 20-03-2024 is time barred by limitation and thus invalid and therefore, the same is quashed and accordingly, consequent reassessment also stand quashed. Accordingly the legal issue raised by the assessee is allowed in both the appeals.
Since we have decided the legal ground in favour of the assessee in both the appeals, the other grounds have become academic, hence, need not be adjudicated.
In the result, both the appeals of the assessee is allowed.