2024 (12) TMI 1540 - HC - Income Tax

Validity of reopening of assessment - scope of new law - applicability of the Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act 2020 - HELD THAT - As decided in Supreme Court in Union of India and Others vs. Rajeev Bansal 2024 (10) TMI 264 - SUPREME COURT (LB) The first provisio to section 149 does not expressly bar the application of Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act 2020 Section 3 of the Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act 2020 applies to the entire Income-tax Act including sections 149 and 151 of the new regime. Once the first proviso to section 149(1)(b) is read with Taxation and other Laws (Relxation and Amendment of Certain Provisions) Act 2020 then all the notices issued between April 1 2021 and June 30 2021 pertaining to the assessment years 2013-2014 2014-2015 2015-2016 2016-2017 and 2017-2018 will be within the period of limitation. In view of the aforesaid the impugned order issued u/s 148(A)(d) as well as the notice issued u/s 148 in respect of AY 2015-16 are liable to be set aside. It is so directed.

Summary

The Court considered the following issues:1. Whether the impugned notices and orders issued under sections 148 and 148A(d) of the Income Tax Act, 1961 for the assessment year 2015-16 should be quashed.2. Whether the Revenue's concession regarding the applicability of the Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 affects the validity of the impugned notices and orders.The Court analyzed the legal framework and precedents, including the Supreme Court's decision in Union of India and Others vs. Rajeev Bansal, which addressed the substitution of the reassessment regime with a new regime under the Finance Act, 2021. The Court noted the concession made by the Revenue regarding the notices issued after April 1, 2021, for the assessment year 2015-16.The Court interpreted the relevant provisions of the Income Tax Act and the Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 in light of the Supreme Court's decision. The Court found that the impugned order and notice issued for the assessment year 2015-16 were not in compliance with the prescribed period under the Taxation Act, leading to the conclusion that they should be set aside.In conclusion, the Court held that the impugned order and notice issued under sections 148 and 148A(d) of the Income Tax Act for the assessment year 2015-16 are to be quashed based on the concession made by the Revenue and the legal provisions discussed. The petition was allowed accordingly, and the pending application was disposed of.