2025 (4) TMI 1367 - SCH - Income Tax

Reopening of assessment u/s 147 - notice issued to the Petitioner-Assessees u/s 148-A(1)(b) - scope of extended time limit by TOLA 2021 - Revenue relied upon Rajeev Bansal 2024 (10) TMI 264 - SUPREME COURT (LB) wherein Revenue concedes that for the assessment year 2015-2016 all notices issued on or after April 1 2021 will have to be dropped as they will not fall for completion during the period prescribed under the Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act 2020 - HELD THAT - As the revenue made a concession in the aforesaid decision that is for the assessment year 2015-2016 all notices issued on or after 1st April 2021 will have to be dropped as they would not fall for completion during the period prescribed under the taxation and other laws (Relaxation and Amendment of certain Provisions Act 2020). Nothing further is required to be adjudicated in this matter as the notices so far as the present litigation is concerned is dated 25.6.2021. In such circumstances referred to above the original writ petition 2023 (2) TMI 1400 - ORISSA HIGH COURT respectively filed before the High Court of Orissa at Cuttack stands allowed. The impugned notice therein stands quashed and set aside. The relief in terms of prayer (a) is granted. The appeals stand disposed of in the above terms.

Summary

The Supreme Court of India granted leave and heard appeals arising from the High Court of Orissa's dismissal of writ petitions challenging income tax notices dated 25.6.2021. The Court relied on the three-judge bench decision in Union of India v. Rajeev Bansal (2024 SCC OnLine SC 2693), particularly paragraph 19(f), wherein "The Revenue concedes that for the assessment year 2015-2016, all notices issued on or after April 1, 2021 will have to be dropped as they will not fall for completion during the period prescribed under the Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020." Given this concession, the Supreme Court held that the impugned notices issued after April 1, 2021, including the notice dated 25.6.2021, must be quashed. Consequently, the Court allowed the writ petitions, set aside the impugned notices, granted relief as prayed, and disposed of the appeals accordingly.