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TMI Blog2018 (6) TMI 366X X X X Extracts X X X X X X X X Extracts X X X X ..... ERABAD] and case of S.S.Gadgil (1997 (12) TMI 4 - SUPREME COURT). Therefore, respectfully following the view taken by the Coordinate Bench, Hyderabad, we hold that reassessment proceedings initiated by the AO in this case is also barred by limitation. - Decided in favour of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... by them. Hence, order u/s. 163(1)(c) was passed by the Assessing officer (AO) on 10.02.2014 treating the assessee as an Agent of the aforementioned non-residents for the A.Y.2007-08 after affording opportunity to the assessee. 3.1. As per the sale deed, the consideration was stated to be ₹ 35,00,000/, whereas the market value of the said property was at ₹ 78,39,000/-. Therefore, as per the provisions of Sec.50C, the Long Term Capital Gains in respect each case of the above non-resident is worked out as under: Sl. No Name of the non-resident Share in the property Share in sale consideration (Rs.) 1. Smt. Laliitha D.V. Rao 1/3 26,13,000 2. Smt V. Ujwala Rao 1/9 8,71,000 3 . Smt, V Gautam Rao 1/9 8,71,000 4 . Smt V. Pratima Rao 1/9 8,71000 5 . Sri R. Mani Kumar 1/12 6,53,250 6 . Sri R. Smitha Sarma 1/12 6,53,250 In view of the above position, since the above non-residents have not filed their respective individual returns of income by disclosing the incomes from the long term capital gains, notices u/s. 148 were issued on 24.03.2014 to Dr. P. Venugopal, Rep. Assessee of Smt V Pratima Rao and Five others and served the same ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oduced, as below. Explanation - For the removal of doubts, it is hereby clarified that the provisions of sub-sections (1) and (3), as amended by the Finance Act, 2012, shall also be applicable for any assessment year beginning onor before the 1st day of April, 2012." 6.2. In view of the above, the Intention of the legislature is clear and the time of 6 years was available to issue notice u/s 148 in the present set of facts. Important changes have been made by the Finance Act, 2012. Apart from changing the existing provisions of Section 149(1), the period of two years is substituted by six years in Sec 149(3). It may be noted that the provisions of Sec 149 are procedural in nature. However, it is clarified by inserting the said explanation at the end of the section that amendments made by the Finance Act, 2012 shall apply to assessment year beginning on or before April 1, 2012. Thus, there is absolutely no scope for any interpretation giving rise to another view as the said explanation clarifies the position and leaves no scope, whatsoever, for any confusion or doubt." The Ld.CIT(A) has taken support of Hon'ble Apex Court's decision in the case of IPCA Laboratory Ltd. V ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e tax at source as required u/s 195 of I.T.Act, hence, the AO has passed the order u/s 163 (1)(c) treating the assessee as an agent of non residents for the assessment year 2007-08 and issued notice u/s 148 on 24.03.2014. According to the assessee as per section 149(3), the time limit for issue of notice u/s 148 got expired on 31.03.2010 which was two years during the assessment year under consideration. For ready reference, we extract relevant section 149(3) of I.T.Act which reads as under : (3) If the person on whom a notice under section 148 is to be served is a person treated as the agent of a non-resident under section 163 and the assessment, reassessment or re computation to be made in pursuance of the notice is to be made on him as the agent of such non-resident, the notice shall not be issued after the expiry of a period of six years from the end of the relevant assessment year. Plain reading of section 149(3) shows that the time limit for issue of notice u/s 148 in case of agent of non residents was two years from the end of the relevant assessment year in which the transaction took place. However, the Act has been amended w.e.f. 1.7.2012 by substituting the period with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m a notice under section 148 is to be served is a person treated as the agent of a non-resident under section 163 and the assessment, reassessment or re-computation to be made in pursuance of the notice is to be made on him as the agent of such nonresident, the notice shall not be issued after the expiry of a period of *[six] years from the end of the relevant assessment year. [Explanation-For the removal of doubts, it is hereby clarified that the provisions of sub-section (1) and (3), as amended by the Finance Act, 2012, shall also be applicable for any assessment year beginning on or before the J day of April, 2022.]" *Substituted for 'two" by the Finance Act, 2012, w.e.f 1-7-2012. Thus, the provisions of sub-section (3) of Section 149 mandates that where the income escaping the assessment belongs to a non-resident, and the reassessment is to be made on agent of non-resident in accordance with the provisions of Sec. 163 of the Act, the notice u/s.148 should be issued only within the period of two years from the end of the relevant assessment year up to 30.06.2012 or within a period of six tears subsequent to 3006.2012. In this case, the relevant assessment y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vided under the old Act and the commencement of the amending Act. The legislature has given to s. 18 of the Finance Act, 1956, only a limited retrospective operation, .e,, up to 1st April, 1956, only. That provision must be read subject to the rule that in the absence of an express provision or clear implication, the legislature does not intend to attribute to the amending provision greater retrospectivity than is expressly mentioned, nor to authorise the ITO to commence proceedings which before the new Act came into force had by the expiry of the period provided become barred. 7.2. Hon'ble AP High Court in the case of Addl.CIT Vs. Watan Mechanical and Turning Works (supra) held as under : It is well-settled that the IT Act as it stands amended on the 1st day of April of any financial year, must apply to the assessment of that year. Any amendments in the Act which come into force after the first day of April of financial year, would not apply to the assessment of that year, even if the assessment is actually made after the amendments come into force.' In the instant case, the assessment year involved is 2007-08 and the time limit for issue of notice u/s 148 was barred by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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