2024 (12) TMI 1269 - HC - Income Tax

Reopening of assessment u/s 147 - Legality of the order passed u/s 148A(d) and notice u/s 148 - Writ Court interference at the stage of notice u/s 148 when the assessment/reassessment is pending u/s 147 of the Act - scope of notices issued under Section 148 of the new regime between July and September 2022 - Application of TOLA to the Income Tax Act after 1 April 2021 -HELD THAT - As decided in RAJEEV BANSAL 2024 (10) TMI 264 - SUPREME COURT (LB) a notice could be issued under Section 148 of the new regime for assessment year 2021-2022 and before only if the time limit for issuance of such notice continued to exist under Section 149(1)(b) of the old regime. Without the proviso to Section 149(1)(b) of the new regime, the Revenue could have had the power to reopen assessments for the year 2012-2013 if the escaped assessment amounted to Rupees fifty lakhs or more. The proviso limits the retrospective operation of Section 149(1)(b) to protect the interests of the assesses. In view of the above, the present petition is allowed. The impugned order under Section 148A (d) of the Act dated 23 July 2022 and consequential notice referable to Section 148 of even date are hereby quashed and set aside.

Summary

The High Court judgment quashed the reassessment action for Assessment Year 2015-2016 under Section 148 of the Income Tax Act, 1961. The court allowed the writ petition and set aside the order and notice related to the reassessment.