TMI Blog2024 (10) TMI 264X X X X Extracts X X X X X X X X Extracts X X X X ..... atter before this Court. In State v. Kalyan Singh [ 2017 (4) TMI 1564 - SUPREME COURT] this Court observed that a judgment has two components: (a) declaration of law; and (b) directions. In Bir Singh v. Mukesh Kumar [ 2019 (2) TMI 547 - SUPREME COURT] it was held that what is binding on all courts under Article 141 is the declaration of law, and not the directions issued under Article 142. This Court has exercised its jurisdiction under Article 142 in tax matters where the actions of the Revenue are not in accordance with the law. In Whirlpool of India Ltd. v. CIT [ 2000 (2) TMI 15 - SUPREME COURT] this Court directed the Income Tax Officer to give effect to the order of the Income Tax Appellate Tribunal by disallowing a particular deduction. In CIT v. Greenworld Corporation [ 2009 (5) TMI 14 - SUPREME COURT] the issue before this Court was whether a Commissioner of Income Tax appropriately issued directions under Section 263 of the Income Tax Act to an assessing officer to reopen assessments. It was held that the facts of the case did not merit the CIT to issue directions to the assessing officer. Consequently, this Court termed the reassessment notice issued by the assessing offi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... may not have been, with all the attendant consequences.154 The effect of a legal fiction is that a position which otherwise would not obtain is deemed to obtain under the circumstances. Under Section 148A(b), the assessing officer has to comply with two requirements: (i) issuance of a show cause notice; and (ii) supply of all the relevant information which forms the basis of the show cause notice. The supply of the relevant material and information allows the assessee to respond to the show cause notice. The deemed notices were effectively incomplete because the other requirement of supplying the relevant material or information to the assesses was not fulfilled. The second requirement could only have been fulfilled by the Revenue by an actual supply of the relevant material or information that formed the basis of the deemed notice. While creating the legal fiction in Ashish Agarwal (supra), this Court was cognizant of the fact that the assessing officers were effectively inhibited from performing their responsibility under Section 148A until the requirement of supply of relevant material and information to the assesses was fulfilled. This Court lifted the inhibition by directing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 22. In Ashish Agarwal (supra), this Court allowed the assesses to avail all the defences, including the defence of expiry of the time limit specified under Section 149(1). In the instant appeals, the reassessment notices pertain to the assessment years 2013-2014, 2014-2015, 2015-2016, 2016-2017, and 2017-2018. To assume jurisdiction to issue notices under Section 148 with respect to the relevant assessment years, an assessing officer has to: (i) issue the notices within the period prescribed under Section 149(1) of the new regime read with TOLA; and (ii) obtain the previous approval of the authority specified under Section 151. A notice issued without complying with the preconditions is invalid as it affects the jurisdiction of the assessing officer. Therefore, the reassessment notices issued under Section 148 of the new regime, which are in pursuance of the deemed notices, ought to be issued within the time limit surviving under the Income Tax Act read with TOLA. A reassessment notice issued beyond the surviving time limit will be time barred. Thus, we conclude that: a. After 1 April 2021, the Income Tax Act has to be read along with the substituted provisions; b. TOLA will contin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 192 - RAJASTHAN HIGH COURT] , Ambika Iron and Steel Pvt Ltd v. PCIT [ 2022 (1) TMI 1291 - ORISSA HIGH COURT] , Twylight Infrastructure Pvt Ltd v. ITO [ 2024 (1) TMI 759 - DELHI HIGH COURT] , Ganesh Dass Khanna v. ITO [ 2023 (11) TMI 763 - DELHI HIGH COURT] and other judgments of the High Courts which relied on these judgments, are set aside to the extent of the observations made in this judgment. X X X X Extracts X X X X X X X X Extracts X X X X ..... C.A. No. 8802/2024 C.A. No. 8956/2024 C.A. No. 9056/2024 C.A. No. 8826/2024 C.A. No. 8958/2024 C.A. No. 8957/2024 C.A. No. 8827/2024 C.A. No. 8959/2024 C.A. No. 8962/2024 C.A. No. 9044/2024 C.A. No. 8967/2024 C.A. No. 8963/2024 T.P.(C) No. 2942/2023 T.P.(C) No. 2937/2023 C.A. No. 9052/2024 C.A. No. 9170/2024 C.A. No. 9048/2024 C.A. No. 9180/2024 C.A. No. 9186/2024 C.A. No. 9043/2024 C.A. No. 9046/2024 C.A. No. 8960/2024 C.A. No. 9231/2024 C.A. No. 8964/2024 C.A. No. 9042/2024 C.A. No. 9228/2024 C.A. No. 8961/2024 C.A. No. 9202/2024 C.A. No. 9205/2024 C.A. No. 9184/2024 C.A. No. 9172/2024 C.A. No. 9177/2024 C.A. No. 8896/2024 C.A. No. 9225/2024 C.A. No. 9619/2024 C.A. No. 9238/2024 C.A. No. 9208/2024 C.A. No. 9189/2024 C.A. No. 9220/2024 C.A. No. 8897/2024 C.A. No. 8905/2024 C.A. No. 8930/2024 C.A. No. 9223/2024 C.A. No. 8898/2024 C.A. No. 8926/2024 C.A. No. 8899/2024 C.A. No. 9240/2024 C.A. No. 8900/2024 C.A. No. 8895/2024 C.A. No. 8906/2024 C.A. No. 8901/2024 C.A. No. 9503/2024 C.A. No. 8907/2024 C.A. No. 8908/2024 C.A. No. 8909/2024 C.A. No. 8902/2024 C.A. No. 8903/2024 C.A. No. 8904/2024 C.A. No. 9280/2024 C.A. No. 8910/2024 C.A. No. 9282/2024 C.A. No. 9285/2024 C.A. No. 9287/20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 024 C.A. No. 9215/2024 C.A. No. 9243/2024 C.A. No. 9245/2024 C.A. No. 9252/2024 C.A. No. 9216/2024 C.A. No. 9295/2024 C.A. No. 9057/2024 C.A. No. 9269/2024 C.A. No. 9254/2024 C.A. No. 9058/2024 C.A. No. 9271/2024 C.A. No. 9272/2024 C.A. No. 9255/2024 C.A. No. 9256/2024 C.A. No. 9258/2024 C.A. No. 9275/2024 C.A. No. 9260/2024 C.A. No. 9806/2024 C.A. No. 9188/2024 C.A. No. 9192/2024 C.A. No. 9211/2024 C.A. No. 9200/2024 C.A. No. 9213/2024 C.A. No. 9218/2024 C.A. No. 9222/2024 C.A. No. 9229/2024 C.A. No. 9234/2024 C.A. No. 9824/2024 C.A. No. 9825/2024 C.A. No. 9235/2024 C.A. No. 9241/2024 C.A. No. 9364/2024 C.A. No. 9602/2024 C.A. No. 9330/2024 C.A. No. 9204/2024 C.A. No. 9206/2024 C.A. No. 9246/2024 C.A. No. 9331/2024 C.A. No. 9257/2024 C.A. No. 9259/2024 C.A. No. 9263/2024 C.A. No. 9332/2024 C.A. No. 9333/2024 C.A. No. 9264/2024 C.A. No. 9265/2024 C.A. No. 9334/2024 C.A. No. 9267/2024 C.A. No. 9335/2024 C.A. No. 9365/2024 C.A. No. 9336/2024 C.A. No. 9268/2024 C.A. No. 9288/2024 C.A. No. 9290/2024 C.A. No. 9291/2024 C.A. No. 9292/2024 C.A. No. 9293/2024 C.A. No. 9337/2024 C.A. No. 9801/2024 C.A. No. 9803/2024 C.A. No. 9294/2024 C.A. No. 9338/2024 C.A. No. 9348/2024 C.A. No. 9799/2024 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 9560/2024 C.A. No. 9358/2024 C.A. No. 9536/2024 C.A. No. 8808/2024 C.A. No. 9456/2024 C.A. No. 9384/2024 C.A. No. 9383/2024 C.A. No. 9371/2024 C.A. No. 9457/2024 C.A. No. 9393/2024 C.A. No. 9561/2024 C.A. No. 9518/2024 C.A. No. 9568/2024 C.A. No. 9519/2024 C.A. No. 9520/2024 C.A. No. 9537/2024 C.A. No. 9562/2024 C.A. No. 9538/2024 C.A. No. 9563/2024 C.A. No. 9407/2024 C.A. No. 9397/2024 C.A. No. 8814/2024 C.A. No. 9564/2024 C.A. No. 9408/2024 C.A. No. 9539/2024 C.A. No. 9436/2024 C.A. No. 8811/2024 C.A. No. 9446/2024 C.A. No. 9460/2024 C.A. No. 9540/2024 C.A. No. 8806/2024 C.A. No. 9541/2024 C.A. No. 9542/2024 C.A. No. 9543/2024 C.A. No. 9544/2024 C.A. No. 9521/2024 C.A. No. 9400/2024 C.A. No. 9545/2024 C.A. No. 9522/2024 C.A. No. 9438/2024 C.A. No. 8836-8837/2024 C.A. No. 9441/2024 C.A. No. 9468/2024 C.A. No. 9546/2024 C.A. No. 9547/2024 C.A. No. 9523/2024 C.A. No. 9571/2024 C.A. No. 9548/2024 C.A. No. 9319/2024 C.A. No. 9401/2024 C.A. No. 9355/2024 C.A. No. 9361/2024 C.A. No. 9471/2024 C.A. No. 9472/2024 C.A. No. 9362/2024 C.A. No. 9549/2024 C.A. No. 9467/2024 C.A. No. 9550/2024 C.A. No. 9448/2024 C.A. No. 9551/2024 C.A. No. 9445/2024 C.A. No. 9552/2024 C.A. No. 9443/2024 C.A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2024 C.A. No. 9423/2024 C.A. No. 9424/2024 C.A. No. 8830/2024 And With C.A. No. 9425/2024 CJI [ Dr Dhananjaya Y Chandrachud ] , Justice [ J B Pardiwala ] And Justice [ Manoj Misra ] For the Appellant : Mr. N Venkataraman, A.S.G. Mr. Rupesh Kumar, Sr. Adv. Mr. Raj Bahadur Yadav, AOR Mr. Shashank Bajpai, Adv. Mr. Venkataraman Chandrashekhara Bharathi, Adv. Mrs. Alka Agarawal, Adv. Mr. Ishaan Sharma, Adv. Mr. Annirudh Sharma Ii, Adv. Mr. Alka Aggarwal, Adv. Mrs. Anamika Agarwal, Adv. Mr. Praneet Pranab, Adv. Mrs. Anamika Aggarwal, Adv. Mr. Santosh Kumar, Adv. Mrs. A Deepa, Adv. Mr. Rajesh Kumar Singh, Adv. Mr. Amrish Kumar, AOR Mr. Mahesh Agarwal, Adv. Mr. Alok Yadav, Adv. Mr. M.S. Ananth, Adv. Mr. Abhinabh Garg, Adv. Ms. Sayaree Basu Mallik, Adv. Mr. E. C. Agrawala, AOR Mr. Tushar Thareja, Adv. Mr. Rishabh Ostwal, Adv. Mr. Bhakti Vardhan Singh, AOR Mr. Ajay Kumar, AOR For the Respondent : Mr. Ved Jain, Adv. Mr. Nischay Kantoor, Adv. Ms. Soniya Dodeja, Adv. Mr. Divyansh Dubey, Adv. Mr. Subodh S. Patil, AOR Mr. Sonal Jain, AOR Mr. Ruchesh Sinha, Adv. Mr. Pankaj Agarwal, Adv. Ms. Yashvi Aswani, Adv. Dr. Prashant Pratap, Adv. Ms. Anupriya Dixit, Adv. Mr. Amjid Maqbool, Adv. Ms. Pall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , Adv. Mr. Simranjit H. Virk, Adv. Mr. Prashanth Undurti, Adv. Ms. Deepanwita Priyanka, AOR Ms. Prerana Mohapatra, Adv. Mr. Saswat Kumar Acharya, Adv. Mr. Dhananjay Bhaskar Ray, AOR Mr. Abhijeet Agarwal, Adv. Mr. Siddharth Ranka, Adv. Mr. A. Karthik, AOR Mr. Jasdeep Singh Dhillon, AOR Ms. Amanat Kaur Chahal, Adv. Mr. Yutangar Singh Chauhan, Adv. Mr. Hds Bains, Adv. Ms. R. K. Batra, Adv. Mr. Abhay Singh Mann, Adv. Mr. Jas Sanghavi, Adv. Mr. Sandeep Yadav, Adv. Mr. Raj Bahadur Yadav, AOR Mr. Kumar Kale, Adv. Mr. Dharan Gandhi, Adv. Mr. Devendra Jain, Adv. Ms. Gunjan Kakad, Adv. Mr. Rajat Mittal, AOR Mr. Suprateek Neogi, Adv. Mr. Shubhranshu Padhi, AOR Mr. Prabodha Ch. Nayak, Adv. Mr. D. Girish Kumar, Adv. Mr. Jay Nirupam, Adv. Mr. Pranav Giri, Adv. Mr. Ekansh Sisodia, Adv. Ms. A. M. Harsavardhini, Adv. Mr. Dhiraj Kumar Sammi, AOR Mr. Sanjay Prakash Goyatan, Adv. Dr. Chandrakant S.sarkar, Adv. Mr. Kapil Goel, Adv. Mr. Sougat Sinha, Adv. Mr. Sandeep Goel, Adv. Mr. Dhananjay Garg, AOR Mr. Abhishek Garg, Adv. Mr. Dinesh Kumar Garg, Adv. Mr. Tanuj Gulati, Adv. Ms. Gayathri R. Manasa, Adv. Mr. Gaurav Choudhary, Adv. Ms. Anu Kushwaha, Adv. Mr. R.p. Bansal, Adv. Mr. Percy Pardiwala, Sr. Adv. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ............................................................................................................. 50 C. Submissions ...................................................................................................... 51 D. Legal Background ............................................................................................. 55 i. Assessment as a quasi-judicial function ..................................................... 55 ii. Assessment as an issue of jurisdiction ....................................................... 59 iii. Principles of strict interpretation and workability ....................................... 63 iv. Principle of harmonious construction.......................................................... 66 E. Reading TOLA into the Income Tax Act ........................................................... 70 i. First proviso to Section 149(1) of the new regime ...................................... 70 ii. TOLA can extend the time limit till 31 June 2021 ........................................ 75 a. Finance Act 2021 substituted the old regime ................................................ 75 b. Reading TOLA into Section 149 ....... ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 1497 prescribed the following time limits for issuing a notice under Section 148 for an assessment year: (i) four years from the end of the relevant assessment year ; (ii) four years but not more than six years from the end of the relevant assessment year if the income chargeable to tax which has escaped assessment amounted to or was likely to amount to Rupees one lakh or more for that year ; and (iii) four years but not more than sixteen years from the end of the relevant assessment year if the income in relation to any asset ( including financial interest in any entity ) located outside India and chargeable to tax has escaped assessment. 4. Section 151 required the assessing officer to obtain the sanction of the specified authority before issuing a notice under Section 148.8 In case the notice was issued within four years, the sanctioning authority was the Joint Commissioner.9 In case the notice was issued after the expiry of four years, the sanctioning authority was the Principal Chief Commissioner,10 Chief Commissioner,11 Principal Commissioner or Commissioner.12 The authorities have a distinct meaning under the Income Tax Act. Following a decision of this Court in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... prescribed or notified under, the specified Act which falls during the period from the 20th day of March, 2020 to the 31st day of December, 2020, or such other date after the 31st day of December, 2020, as the Central Government, may, by notification, specify in this behalf, for the completion or compliance of such action as - (a) completion of any proceedings or passing of any order or issuance of any notice, intimation, notification, sanction or approval, or such other action, by whatever name called, by any authority, commission or tribunal, by whatever name called, under the provisions of the specified Act; […] And where completion of compliance of such action has not been made within such time, then, the timelimit for completion or compliance of such action shall, notwithstanding anything contained in the specified Act, stand extended to the 31st day of March, 2021, or such other date after 31st day of March, 2021, as the Central Government may, by notification, specify in this behalf:" 8. Section 3(1) empowered the Central Government to extend the time limit beyond 31 March 2021 by a notification. In pursuance of its powers, the Central Government issued the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll situations.21 Assessments can be reopened beyond three years but within ten years from the end of the relevant assessment year if the income chargeable to tax which has escaped assessment amounts to or is likely to amount to Rupees fifty lakhs or more. However, the first proviso to Section 149 prohibits the issuance of a reassessment notice under the new regime if such notices have become time-barred under the old regime; and (iv) The sanctioning authorities specified under Section 151 of the new regime are different from those specified under the old regime.22 Section 151 of the new regime specifies the following authorities for Section 148 and 148A: (i) Principal Commissioner or Principal Director23 or Commissioner or Director if three years or less have elapsed from the end of the relevant assessment year; and (ii) Principal Chief Commissioner or Principal Director General or Chief Commissioner or Director General if more than three years have elapsed from the end of the relevant assessment year. 11. The notifications dated 31 March 2021 and 27 April 2021 issued by the Central Government under Section 3(1) of TOLA contained an explanation declaring that the provisions unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 148 of the IT Act, which were the subject-matter of writ petitions before the various respective High Courts shall be deemed to have been issued under Section 148-A of the IT Act as substituted by the Finance Act, 2021 and construed or treated to be show-cause notices in terms of Section 148-A(b). The assessing officer shall, within thirty days from today provide to the respective assessees information and material relied upon by the Revenue, so that the assessees can reply to the show-cause notices within two weeks thereafter. 28.2. The requirement of conducting any enquiry, if required, with the prior approval of specified authority under Section 148-A(a) is hereby dispensed with as a one-time measure vis-à-vis those notices which have been issued under Section 148 of the unamended Act from 1-4-2021 till date, including those which have been quashed by the High Courts. 28.3. Even otherwise as observed hereinabove holding any enquiry with the prior approval of specified authority is not mandatory but it is for the assessing officers concerned to hold any enquiry, if required. 28.4. The assessing officers shall thereafter pass orders in terms of Section 148-A(d) in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly considered the replies furnished by the assesses and passed orders under Section 148A(d). Subsequently, notices under Section 148 of the new regime were issued to the assesses by the assessing officers between July and September 2022 for the assessment years 2013-2014, 2014-2015, 2015-2016, 2016-2017, and 2017-2018. These notices were challenged before several High Courts. The High Courts declared the notices to be invalid on the ground that they were: (i) time-barred; and (ii) issued without the appropriate sanction of the specified authority. 17. In Ashish Agarwal (supra), this Court was called upon to decide whether the Revenue was correct in issuing the reassessment notices under the old regime when the new regime, which was beneficial to the assesses, was already in force. This Court resolved the issue by holding that all reassessment notices issued after 1 April 2021 should have been issued in accordance with the new regime. However, the Court construed the notices issued under Section 148 of the old regime by deeming them to be notices issued under Section 148A(b) of the new regime. In Ashish Agarwal (supra), this Court did not deal with the issue of whether or not the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be within the period of limitation as explained in the tabulation below: Assessment Year (1) Within 3 Years (2) Expiry of Limitation read with TOLA for (2) (3) Within six Years (4) Expiry of Limitation read with TOLA for (4) (5) 2013-2014 31.03.2017 TOLA not applicable 31.03.2020 30.06.2021 2014-2015 31.03.2018 TOLA not applicable 31.03.2021 30.06.2021 2015-2016 31.03.2019 TOLA not applicable 31.03.2022 TOLA not applicable 2016-2017 31.03.2020 30.06.2021 31.03.2023 TOLA not applicable 2017-2018 31.03.2021 30.06.2021 31.03.2024 TOLA not applicable f. The Revenue concedes that for the assessment year 2015-16, all notices issued on or after 1 April 2021 will have to be dropped as they will not fall for completion during the period prescribed under TOLA; g. Section 2 of TOLA defines "specified Act" to mean and include the Income Tax Act. The new regime, which came into effect on 1 April 2021, is now part of the Income Tax Act. Therefore, TOLA continues to apply to the Income Tax Act even after 1 April 2021; and h. Ashish Agarwal (supra) treated Section 148 notices issued by the Revenue between 1 April 2021 and 30 June 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... instead of Section 151(1) of the old regime; iii. Third category: for assessment years 2016-2017 and 2017-2018, the three-year period in terms of the amended regime expired on 31 March 2020 and 31 March 2021, respectively. The notices under Section 148 were issued after the expiry of three years, that is, after 1 April 2021. However, the sanctions were obtained under Section 151(i) instead of Section 151(ii) of the new regime; and iv. The directions issued by this Court in Ashish Agarwal (supra) were not intended to apply to assesses who did not challenge the reassessment notices before the High Courts or this Court. Therefore, reassessment proceedings could not have been initiated for such assesses. e. The applicability of the first proviso to Section 149(1)(b) of the new regime has to be tested on the date of issuance of notice under Section 148 of the new regime. Even if TOLA is read into the Income Tax Act, the time limits for completion or compliance of actions can be extended till 30 June 2021. However, the notices under Section 148 of the new regime were issued by the Revenue from July to September 2022. The period of July to September 2022 is beyond the extended time ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt they have no support, and are nullities. The assessment is, therefore, the most important of all the proceedings in taxation, and the provisions to insure its accomplishing its office are commonly very full and particular. If there is no valid assessment, a tax on sale of lands is a nullity. A want of assessment is not a mere irregularity remedied by a curative statute. On the other hand, no assessment is necessary where the statute itself prescribes the amount to be paid, and this can be recovered by suit. For instance, where a statute imposes a tax at a specified rate upon bank deposits, no other assessment other than that made by the statute itself is necessary."38 24. The expression "assessment" comprehends the entire procedure for ascertaining and imposing liability upon taxpayers.39 The process of assessment involves computation of the income of the assessees, determination of tax payable by them, and the procedure for collecting or recovering tax.40 An assessing officer is concerned with the assessment and collection of revenue. An assessing officer must administer the provisions of the Income Tax Act in the interests of the public revenue and to prevent evasion or e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 51 The taxing statutes generally lay down the procedure for issuance of notice to the proposed assessee in respect of income or property proposed to be taxed. It also prescribes the authority and procedure for hearing any objections to the liability for taxation.52 ii. Assessment as an issue of jurisdiction 28. Jurisdiction is defined as the power of a court, tribunal, or authority to hear and determine a cause or exercise any judicial power concerning such cause.53 The Revenue officers must have requisite jurisdiction to perform their functions and responsibilities following the provisions of the Income Tax Act. Under the Income Tax Act 1922,54 Section 34 allowed an Income Tax Officer to reassess income that escaped assessment for a relevant assessment year. Section 34 provided that a reassessment notice could not be issued beyond the prescribed time limit (which was generally within eight years from the end of the relevant assessment year). Thus, Section 34 conferred jurisdiction on Income Tax Officers to reopen an assessment subject to the issuance of notice within the prescribed time limits.55 In Ahmedabad Manufacturing and Calico Printing Co. Ltd. v. S G Mehta, ITO,56 Justi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rescribed time limits were declared invalid for being time-barred.59 Assessment proceedings that have attained finality under existing law due to a time bar cannot be held to be open for revival unless the amended provision is given retrospective effect to allow upsetting the legal proceedings60 30. If a statute expressly confers a power or imposes a duty on a particular authority, then such power or duty must be exercised or performed by that authority itself.61 Further, when a statute vests certain power in an authority to be exercised in a particular manner, then that authority has to exercise its power following the prescribed manner.62 Any exercise of power by statutory authorities inconsistent with the statutory prescription is invalid.63 Section 34 of the Income Tax Act 1922 prescribed a duty on Income Tax Officers to seek prior approval of the Commissioner before issuing a reassessment notice. In CIT v. Maharaja Pratapsingh Bahadur of Gidhaur,64 a three-Judge Bench of this Court held that a notice issued under Section 34 without prior approval of the Commissioner was invalid. 31. The Income Tax Act 1961 also mandates assessing officers to fulfil certain pre-conditions bef ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of equity or justice are not relevant in interpreting a taxing statute.78 35. It is a well-accepted rule of construction that in situations where the interpretation of taxing legislation is ambiguous or leads to two possible interpretations, the interpretation most beneficial to the subject of the tax should be adopted.79 It would not be an unjust result if a taxpayer escapes the tax net on account of the legislature's failure to express itself clearly.80 36. In a taxing statute, the charging section has to be construed strictly, but the machinery provisions must be interpreted in accordance with the ordinary rules of statutory interpretation.81 The purpose is to give effect to the clear intention of the legislature. In Murarilal Mahabir Prasad v. B R Vad,82 this Court held that: "29. […] There is no equity about a tax in the sense that a provision by which a tax is imposed has to be construed strictly, regardless of the hardship that such a construction may cause either to the treasury or to the taxpayer. If the subject falls squarely within the letter of law he must be taxed, howsoever inequitable the consequences may appear to the judicial mind. If the Revenue seeking ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... benefit of the Revenue: "40. Although, Section 147 is part of a taxing statute, it imposes no charge on the subject but deals merely with the machinery of assessment and in interpreting a provision of that kind, the rule is that construction should be preferred which makes the machinery workable. Since the proceedings under Section 147 of the Act are for the benefit of the Revenue and not an assessee and are aimed at gathering the 'escaped income' of an assessee, the same cannot be allowed to be converted as 'revisional' or 'review' proceedings at the instance of the assessee, thereby making the machinery unworkable." iv. Principle of harmonious construction 39. The legislature is presumed to enact a consistent and harmonious body of laws in deference to the rule of law.90 In case of any apparent conflict within a provision or between two provisions of the same statute, the courts must read the provisions harmoniously.91 The principle of harmonious construction requires courts to bring about a reconciliation between seemingly conflicting provisions to give effect to both. An interpretation which reduces one of the provisions to a "dead letter" is not a harmonious constructio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is manifested through the provisions of the later enactment.99 In MCD v. Shiv Shanker,100 this Court culled out the following principles applicable to the implied repeal of legislation: a. A subsequent legislation may not be too readily presumed to effectuate a repeal of existing statutory laws in the absence of express or at least unambiguous indication to that effect; b. Courts must lean against implying a repeal unless the two provisions are so plainly repugnant to each other that they cannot stand together and it is not possible on any reasonable hypothesis to give effect to both at the same time; c. It is necessary to closely scrutinise and consider the true meaning and effect of both the earlier and the later statute; and d. If the objects of the two statutory provisions are different and the language of each statute is restricted to its objects or subject, then they are generally intended to rule in parallel lines without meeting and there would be no real conflict. 43. The principle on which the rule of implied repeal rests is that if the subjectmatter of a later legislation is identical to that of an earlier legislation so that they both cannot stand together, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... supplied) 46. The ingredients of the proviso could be broken down for analysis as follows : (i) no notice under Section 148 of the new regime can be issued at any time for an assessment year beginning on or before 1 April 2021; (ii) if it is barred at the time when the notice is sought to be issued because of the "time limits specified under the provisions of" 149(1)(b) of the old regime. Thus, 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. 47. In CTO v. Biswanath Jhunjhunwalla,107 the Bengal Sales Tax Rules 1941 empowered the Commissioner to revise any assessment within four years from the date of assessment. Subsequently, the State Government issued a notification following the law to extend the time limit from four years to six years from the date of assessment. The extension of the time limit was challenged by the respondents on the ground that the assessments which had attained finality because of the expiry of the period of four years could not be reassessed. This Court observed that it was the clear intenti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arch 2019. 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. 50. Another important change under Section 149(1)(b) of the new regime is the increase in the monetary threshold from Rupees one lakh to Rupees fifty lakhs. The old regime prescribed a time limit of six years from the end of the relevant assessment year if the income chargeable to tax which escaped assessment was more than Rupees one lakh. In comparison, the new regime increases the time limit to ten years if the escaped assessment amounts to more than Rupees fifty lakhs. This change could be summarized thus : Regime Time limit Income chargeable to tax which has escaped assessment Old regime Four years but not more than six years Rupees one lakh or more New regime Three years but not more than ten years Rupees fifty lakhs or more 51. Given Section 149(1)(b) of the new regime, reassessment notices could be issued after three years only if ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the following manner: (i) for the assessment years 2013-2014 and 2014-2015, the six year period expires on 31 March 2020 and 31 March 2021 respectively; and (ii) for the assessment years 2016-2017 and 2017-2018, the three year period expires on 31 March 2020 and 31 March 2021 respectively. a. Finance Act 2021 substituted the old regime 55. In Shamrao V Parulekar v. District Magistrate, Thana,108 a Constitution Bench of this Court was called upon to decide the validity of the detention of the petitioner under the Preventive Detention Amendment Act 1950.109 The Detention Act 1950 was due to expire on 1 April 1951, but the legislation was amended to prolong its life by another year till 1 April 1952. The petitioner was detained on 15 November 1951 and his detention would have expired on 1 April 1952 with the expiration of the enactment. However, the Detention Act 1950 was amended in 1952, further prolonging its application for six months till 1 October 1952. The issue before this Court was whether the prolonging of the Detention Act 1950 also prolonged the detention of the petitioner. 56. Justice Vivian Bose, writing for the Constitution Bench, held that the detention continued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is Court observed that according to Order 20 Rule 14(1) of the Code of Civil Procedure 1908, the right of pre-emption becomes a vested right and can only be taken away by a known method of law. As regards the retrospective operation of a substituted provision, it was held that "where a repeal of provisions of enactment is followed by fresh legislation by an amending Act, such legislation is prospective in operation and does not affect substantive or vested rights of the parties unless made retrospective either expressly or by necessary intendment."116 This Court held that the language used by the legislature indicated that it was introduced with prospective effect and could not affect the accrued rights of the co-sharers. The decision of this Court in Shyam Sunder (supra) is an authority for the proposition that an amendment by substitution can have a retrospective effect and affect the vested rights of the parties if the provision is made retrospective either expressly or by necessary intendment. 59. Parliament has often used the legislative process of amendment by substitution in the context of reassessment provisions under the Income Tax Act. In S C Prashar v. Vasantsen Dwarkad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ose of the enactment.121 62. The purpose of Section 3(1) of TOLA is to provide relaxation of time limits prescribed under the specified Acts, which fell for completion or compliance from 20 March 2020 to 31 March 2021. TOLA was enacted in the backdrop of the COVID-19 pandemic, which impeded the functioning of the government at all levels. The imposition of national and local lockdowns created difficulties for the common people, including litigants and assesses, to comply with their legal obligations. The COVID-19 pandemic and the ensuing lockdowns required legislatures across the world to dynamically adapt their laws and policies to redress the difficulties faced by persons, entities, and governmental authorities.122 The World Bank identified that persons and business entities faced severe financial situations characterised by a lack of cash or easily convertible-to-cash assets. It suggested that this would impact revenue collection because individuals and entities would not be in a position to pay the assessed taxes. Therefore, the World Bank advised deferral of tax filings and payment deadlines to allow individuals and business entities to cope with the crisis.123 Many countries ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ations for issuance of notices. Thus, although TOLA did not amend Section 149 of the Income Tax Act, it has to be read with Section 149 to determine the time limit for issuance of a notice. This was the legislative intent behind the enactment of TOLA. For instance, the six year time limit for assessment year 2013-2014 under Section 149(1)(b) of the old regime expired on 31 March 2020. TOLA extended the period for issuing notice until 30 June 2021, given the difficulties that arose because of the COVID-19 pandemic. 66. Section 3(1) of TOLA allowed the Central Government to specify by notification "such other date after the 31st day of March, 2021" as the time limit for completion or compliance of any action under the specified Acts. The provision also empowered the Central Government to specify different dates for completion or compliance of different actions. The notifications dated 31 March 2021 and 27 April 2021 extend the operation of TOLA by providing an extended time limit for completing actions under the Income Tax Act till 30 June 2021. 67. Section 2(1)(b)(ii) of TOLA defines 'specified Act' to include the Income Tax Act. After 1 April 2021, Section 2(1)(b)(ii) must be rea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his Court observed that since Section 153C is a machinery provision, it should be interpreted in a manner to effectuate the object and purpose of the statute. It was observed that the object and purpose of Section 153C was the assessment of the income of any other person. It was held that if the amended provision is made applicable prospectively, it will frustrate the object and purpose of Section 153C. 71. Section 3(1) of TOLA contains a non obstante clause: "notwithstanding anything contained in the specified Act." The legislative intention of including the non obstante clause is to remove any obstacles which may come in the way of the operation of the extension of the time limit till 31 March 2021 or such other date after 31 March 2021 specified by the Central Government. The purpose is to ensure that the full benefit of the relaxation should be provided to both the assesses and the Revenue to tide over the difficulties caused by the COVID-19 pandemic. 72. The non obstante clause in Section 3(1) has to be read as controlling the provisions of the specified Acts, including the provisions of the Income Tax Act.127 In the context of the issuance of a reassessment notice, the non ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notice is issued. This plays out as follows under the old regime: (i) If income escaping assessment was less than Rupees one lakh: (a) a reassessment notice could be issued under Section 148 within four years after obtaining the approval of the Joint Commissioner; and (b) no notice could be issued after the expiry of four years; and (ii) If income escaping was more than Rupees one lakh: (a) a reassessment notice could be issued within four years after obtaining the approval of the Joint Commissioner; and (b) after four years but within six years after obtaining the approval of the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner. 75. After 1 April 2021, the new regime has specified different authorities for granting sanctions under Section 151. The new regime is beneficial to the assesse because it specifies a higher level of authority for the grant of sanctions in comparison to the old regime. Therefore, in terms of Ashish Agarwal (supra), after 1 April 2021, the prior approval must be obtained from the appropriate authorities specified under Section 151 of the new regime. The effect of Section 151 of the new regime is thus : (i) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the specified authority under Section 151(2) has time till 31 March 2021 to grant approval. The time limit for Section 151 of the old regime expires on 31 March 2021 because the new regime comes into effect on 1 April 2021. 78. For example, the three year time limit for assessment year 2017-2018 falls for completion on 31 March 2021. It falls during the time period of 20 March 2020 and 31 March 2021, contemplated under Section 3(1) of TOLA. Resultantly, the authority specified under Section 151(i) of the new regime can grant sanction till 30 June 2021. 79. Under Finance Act 2021, the assessing officer was required to obtain prior approval or sanction of the specified authorities at four stages: a. Section 148A(a) - to conduct any enquiry, if required, with respect to the information which suggests that the income chargeable to tax has escaped assessment; b. Section 148A(b) - to provide an opportunity of hearing to the assessee by serving upon them a show cause notice as to why a notice under Section 148 should not be issued based on the information that suggests that income chargeable to tax has escaped assessment. It must be noted that this requirement has been deleted by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this Court under Article 142 is of the widest amplitude.132 The Constitution has left it to the judicial discretion of this Court to decide the scope and limits of its jurisdiction to render substantial justice in matters coming before it.133 The expression "any cause or matter" mentioned under Article 142 includes every kind of proceeding pending before this Court.134 Article 142 allows this Court to give precedence to equity over law, provided the exercise of the discretion is consistent with constitutional provisions and after due consideration of substantive provisions in statutory law.135 83. In Prem Chand Garg v. The Excise Commissioner,136 Justice P B Gajendragadkar (as the learned Chief Justice then was), speaking for the majority, observed that the order made by this Court under Article 142 "must not only be consistent with the fundamental rights guaranteed by the Constitution, but it cannot even be inconsistent with the substantive provisions of the relevant statutory laws." However, in Union Carbide Corpn. Ltd. v. Union of India,137 Justice Venkatachaliah (as the learned Chief Justice then was), speaking for the majority, clarified Prem Chand Garg (supra) by observing t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ensure a just outcome. When a court is presented before it with hard cases, they follow an interpretation of the law that best fits and justifies the existing legal landscape -- the Constitution, statutes, rules, regulations, customs and common law. Where exclusive rule-based theories of law and adjudication are inadequate to explain either the functioning of the system or create a relief that ensures complete justice, it is necessary to supplement such a model with principles grounded in equitable standards. The power under Article 142 however is not limitless. It authorises the Court to pass orders to secure complete justice in the case before it. Article 142 embodies both the notion of justice, equity and good conscience as well as a supplementary power to the Court to effect complete justice." ( emphasis supplied ) 86. The exercise of the jurisdiction under Article 142 is meant to supplement the existing legal framework to do complete justice between the parties.141 In a given circumstance, this Court can supplement a legal framework to craft a just outcome when strict adherence to a source of law and exclusive rulebased theories create inequitable results.142 87. The di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue issued approximately ninety thousand notices under the old regime and all of them were the subject matter of writ petitions before the High Courts: "4. At this stage, it is required to be noted that approximately 90,000 such reassessment notices under Section 148 of the unamended Income Tax Act were issued by the Revenue after 1-4-2021, which were the subject-matter of more than 9000 writ petitions before various High Courts across the country and by different judgments and orders, the particulars of which are as above, the High Courts have taken a similar view and have set aside the respective reassessment notices issued under Section 148 on similar grounds." Further, this Court directed that its directions "shall be applicable PAN INDIA": "29. The present order shall be applicable PAN INDIA and all judgments and orders passed by the different High Courts on the issue and under which similar notices which were issued after 1-4-2021 issued under Section 148 of the Act are set aside and shall be governed by the present order and shall stand modified to the aforesaid extent. The present order is passed in exercise of powers under Article 142 of the Constitution of India so a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urts in which notices under Section 148 of the old regime issued after 1 April 2021 are under challenge.152 The Court mentioned the above three categories to clarify that the general nature of its directions will also give a quietus to the matters that have already been adjudicated or are pending adjudication before judicial forums. The operation of the directions cannot be limited to the above three categories, especially when this Court has specifically held that "the present order shall be applicable PAN INDIA." 93. In Ashish Agarwal (supra), this Court was aware of the fact that it could not have used its jurisdiction under Article 142 to affect the vested rights of the assesses by deeming Section 148 notices under the old regime as Section 148 notices under the new regime. Hence, it deemed the reassessment notices issued under the old regime as show cause notices under Section 148A(b) of the new regime. Further, the Court directed the Revenue to provide all the relevant material or information to the assesses and thereafter allowed the assesses to respond to the show cause notice by availing all the defences, including those available under Section 149. Thus, the Court balanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n presupposes the existence of the state of facts which may not exist and then works out the consequences which flow from that state of facts. Such consequences have got to be worked out only to their logical extent having due regard to the purpose for which the legal fiction has been created. Stretching the consequences beyond what logically flows amounts to an illegitimate extension of the purpose of the legal fiction." 98. A legal fiction is created for a definite purpose and it should be limited to the purpose for which it is enacted or applied. It is a well-established principle of interpretation that the courts must give full effect to a legal fiction by having due regard to the purpose for which the legal fiction is created.157 The consequences that follow the creation of the legal fiction "have got to be worked out to their logical extent."158 The court has to assume all the facts and consequences that are incidental or inevitable corollaries to giving effect to the fiction.159 99. In Ashish Agarwal (supra), this Court created a legal fiction by deeming the Section 148 notices issued under the old regime as show cause notices under Section 148A(b) of the new regime. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d notice. 102. While creating the legal fiction in Ashish Agarwal (supra), this Court was cognizant of the fact that the assessing officers were effectively inhibited from performing their responsibility under Section 148A until the requirement of supply of relevant material and information to the assesses was fulfilled. This Court lifted the inhibition by directing the assessing officers to supply the assesses with the relevant material and information relied upon by the Revenue within thirty days from the date of the judgment. Thus, during the period between the issuance of the deemed notices and the date of judgment in Ashish Agarwal (supra), the assessing officers were deemed to have been prohibited from proceeding with the reassessment proceedings. 103. In VLS Finance Limited v. Commissioner of Income Tax,161 a two-Judge Bench of this Court was called upon to interpret Explanation 1 to Section 158BE of the Income Tax Act. Section 158BE provides the time limit for completion of block assessments. Explanation 1 to the provision excludes "period during which the assessment proceedings is stayed by an order or injunction of any court" from the period of limitation. This Court he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate of their issuance (somewhere from 1 April 2021 till 30 June 2021) till the date of decision in Ashish Agarwal (supra), that is, 4 May 2022. 106. In Ashish Agarwal (supra), this Court directed the assessing officers to provide relevant information and materials relied upon by the Revenue to the assesses within thirty days from the date of the judgment. A show cause notice is effectively issued in terms of Section 148A(b) only if it is supplied along with the relevant information and material by the assessing officer. Due to the legal fiction, the assessing officers were deemed to have been inhibited from acting in pursuance of the Section 148A(b) notice till the relevant material was supplied to the assesses. Therefore, the show cause notices were deemed to have been stayed until the assessing officers provided the relevant information or material to the assesses in terms of the direction issued in Ashish Agarwal (supra). To summarize, the combined effect of the legal fiction and the directions issued by this Court in Ashish Agarwal (supra) is that the show cause notices that were deemed to have been issued during the period between 1 April 2021 and 30 June 2021 were stayed til ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncluding issuance of reassessment notices under Section 148 of the new regime. The surviving or balance time limit can be calculated by computing the number of days between the date of issuance of the deemed notice and 30 June 2021. 109. If this Court had not created the legal fiction and the original reassessment notices were validly issued according to the provisions of the new regime, the notices under Section 148 of the new regime would have to be issued within the time limits extended by TOLA. As a corollary, the reassessment notices to be issued in pursuance of the deemed notices must also be within the time limit surviving under the Income Tax Act read with TOLA. This construction gives full effect to the legal fiction created in Ashish Agarwal (supra) and enables both the assesses and the Revenue to obtain the benefit of all consequences flowing from the fiction.164 110. The effect of the creation of the legal fiction in Ashish Agarwal (supra) was that it stopped the clock of limitation with effect from the date of issuance of Section 148 notices under the old regime [which is also the date of issuance of the deemed notices]. As discussed in the preceding segments of this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 2016-2017, and 2017-2018. To assume jurisdiction to issue notices under Section 148 with respect to the relevant assessment years, an assessing officer has to: (i) issue the notices within the period prescribed under Section 149(1) of the new regime read with TOLA; and (ii) obtain the previous approval of the authority specified under Section 151. A notice issued without complying with the preconditions is invalid as it affects the jurisdiction of the assessing officer. Therefore, the reassessment notices issued under Section 148 of the new regime, which are in pursuance of the deemed notices, ought to be issued within the time limit surviving under the Income Tax Act read with TOLA. A reassessment notice issued beyond the surviving time limit will be timebarred. G. Conclusions 114. In view of the above discussion, we conclude that: a. After 1 April 2021, the Income Tax Act has to be read along with the substituted provisions; b. TOLA will continue to apply to the Income Tax Act after 1 April 2021 if any action or proceeding specified under the substituted provisions of the Income Tax Act falls for completion between 20 March 2020 and 31 March 2021; c. Section 3(1) of TO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... discussed in this judgment. 117. The transfer petitions are disposed of. 118. Pending application(s), if any, stand disposed of. FOOT NOTE 1 "Income Tax Act" 2 "TOLA" 3 Section 2(7), Income Tax Act. [It defines an "assessee" to mean "a person by whom any tax or any other sum of money is payable under this Act, and includes - (a) every person in respect of whom any proceeding under this Act has been taken for the assessment of his income or assessment of fringe benefits or of the income of any other person in respect of which he is assessable, or of the loss sustained by him or by such other person, or of the amount of refund due to him or to such other person; (b) every person who is deemed to be an assessee under any provisions of this Act; (c) every person who is deemed to be an assessee in default under any provision of this Act;"] 4 Section 2(7A), Income Tax Act. [It defines an "assessing officer" to mean "the Assistant Commissioner or Deputy Commissioner or Assistant Director or Deputy Director or the Income-tax Officer who is vested with the relevant jurisdiction by virtue of directions or orders issued under sub-section (1) or sub-section (2) of secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the time limit for making the assessment, re-assessment or recomputation as specified in sub-section (2) of section 153, every such notice referred to in this clause shall be deemed to be a valid notice. Explanation - For the removal of doubts, it is hereby declared that nothing contained in the first proviso or the second proviso shall apply to any return which has been furnished on or after the 1st day of October 2005 in response to a notice served under this section. (2) The Assessing Officer shall, before issuing any notice under this section, record his reasons for doing so."] 7 Section 149, Income Tax Act. [It reads: "149. Time limit for notice - (1) No notice under section 148 shall be issued for the relevant assessment year,-- (a) if four years have elapsed from the end of the relevant assessment year, unless the case falls under clause (b) or clause (c); (b) if four years, but not more than six years, have elapsed from the end of the relevant assessment year unless the income chargeable to tax which has escaped assessment amounts to or is likely to amount to one lakh rupees or more for that year; (c) if four years, but not more than sixteen years, have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax Act defines Joint Commissioner to mean "a person appointed to be a Joint Commissioner of Income-tax or an Additional Commissioner of Income-tax under sub-section (1) of section 117." 10 Section 2(34-A) of the Income Tax Act defines Principal Chief Commissioner of Income tax to mean "a person appointed to be a Principal Chief Commissioner of Income-tax under sub-section (1) of section 117." 11 Section 2(15A) of the Income Tax Act defines a Chief Commissioner to mean "a person appointed to a Chief Commissioner of Income tax or a Director General of Income tax or a Principal Chief Commissioner of Income tax or a Principal Director General of Income-tax under sub-section (1) of Section 117." 12 Section 2(16) defines Principal Commissioner or Commissioner to mean "a person appointed to be a Principal Commissioner or Commissioner of Income tax or a Principal Director or Director of Income tax or a Principal Commissioner of Income tax or a Principal Director of Income tax under sub-section (1) of section 117." 13 (2003) 1 SCC 72 [5]. It reads: "5. […] However, we clarify that when a notice under Section 148 of the Income Tax Act is issued, the proper course of act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee for the relevant assessment year and the Assessing Officer has obtained prior approval of the specified authority to issue such notice. Explanation 1.--For the purposes of this section and section 148A, the information with the Assessing Officer which suggests that the income chargeable to tax has escaped assessment means,-- (i) any information flagged in the case of the assessee for the relevant assessment year in accordance with the risk management strategy formulated by the Board from time to time; (ii) any final objection raised by the Comptroller and Auditor General of India to the effect that the assessment in the case of the assessee for the relevant assessment year has not been made in accordance with the provisions of this Act. Explanation 2.--For the purposes of this section, where,-- (i) a search is initiated under section 132 or books of account, other documents or any assets are requisitioned under section 132A, on or after the 1st day of April, 2021, in the case of the assessee; or (ii) a survey is conducted under section 133A, other than under sub-section (2A) or sub-section (5) of that section, on or after the 1st day of April, 2021, i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... han ten years, have elapsed from the end of the relevant assessment year unless the Assessing Officer has in his possession books of account or other documents or evidence which reveal that the income chargeable to tax, represented in the form of asset, which has escaped assessment amounts to or is likely to amount to fifty lakh rupees or more for that year: Provided that no notice under section 148 shall be issued at any time in a case for the relevant assessment year beginning on or before 1st day of April, 2021, if such notice could not have been issued at that time on account of being beyond the time limit specified under the provisions of clause (b) of sub-section (1) of this section, as they stood immediately before the commencement of the Finance Act, 2021: Provided further that the provisions of this sub-section shall not apply in a case, where a notice under section 153A, or section 153C read with section 153A, is required to be issued in relation to a search initiated under section 132 or books of account, other documents or any assets requisitioned under section 132A, on or before the 31st day of March, 2021: Provided also that for the purposes of computing the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 021; or (b) the Assessing Officer is satisfied, with the prior approval of the Principal Commissioner or Commissioner that any money, bullion, jewellery or other valuable article or thing, seized in a search under section 132 or requisitioned under section 132A, in the case of any other person on or after the 1st day of April, 2021, belongs to the assessee; or (c) the Assessing Officer is satisfied, with the prior approval of the Principal Commissioner or Commissioner that any books of account or documents, seized in a search under section 132 or requisitioned under section 132A, in case of any other person on or after the 1st day of April, 2021, pertains or pertain to, or any information contained therein, relate to, the assessee. Explanation.--For the purposes of this section, specified authority means the specified authority referred to in section 151."] 22 Section 151, Income Tax Act. [It reads: 151. Sanction for issue of notice - Specified authority for the purposes of section 148 and section 148A shall be, - (i) Principal Commissioner or Principal Director or Commissioner or Director, if three years or less than three years have elapsed from the end of the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... na, (2017) 12 SCC 1 [17]; [310] 32 Amrit Banaspati Co. Ltd. v. State of Punjab, (1992) 2 SCC 411 [10]; Dena Bank v. Bhikhabhai Prabhudas Parekh & Co., (2000) 5 SCC 694 [8] 33 Elel Hotels & Investments Ltd v. Union of India, (1989) 3 SCC 698 [20] 34 Mafatlal Industries Ltd v. Union of India, (1997) 5 SCC 536 [25] 35 CCE v. National Tobacco Co. of India Ltd., (1972) 2 SCC 560 [19] 36 Rai Ramkrishna v. State of Bihar, (1963) SCC OnLine SC 31 [12] 37 CIT v. B C Srinivasa Setty, (1981) 2 SCC 460 [10] 38 Thomas Cooley, The Law of Taxation (4th edn, 1924) 2116 39 Kalawati Devi Harlalka v. CIT, 1967 SCC OnLine SC 44; Addl ITO v. E Alfred, 1961 SCC OnLine SC 243 [7]; S Sankappa v. ITO, 1967 SCC OnLine SC 25 [3]; CCE v. National Tobacco Co. of India, (1972) 2 SCC 560 [19] ["19. […] The term "assessment", on the other hand, is generally used in this country for the actual procedure adopted in fixing liability to pay a tax on account of particular goods of property or whatever may be the object of the tax in a particular case and determining its amount."] 40 Bhopal Sugar Industries Ltd v. State of Madhya Pradesh, (1979) 3 SCC 792 [12] 41 M M Ipoh v. CIT, 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SCC 766 [28] 68 Dwarka Prasad Agarwal v. B D Agarwal, (2003) 6 SCC 230 [37] 69 CIT v. Kelvinator of India Ltd, (2010) 2 SCC 723 [6]. ["6. […] Reassessment has to be based on the fulfilment of certain precondition […]"] 70 Banarsi Debi v. ITO, 1964 SCC OnLine SC 48 [6] 71 Punjab Land Development and Reclamation Corporation Ltd. v. Presiding Officer, Labour Court (1990) 3 SCC 682 [67] 72 Commissioner of Customs v. Dilip Kumar & Co., (2018) 9 SCC 1 [28] 73 State of Gujarat v. Mansukhbhai Kanjibhai Shah, (2020) 20 SCC 360 [24] 74 G P Singh, Principles of Statutory Interpretation (15th edn, 2023) 616. 75 Cape Brandy Syndicate v. Inland Revenue Commissioners, (1921) KB 64, 71 76 A V Fernandes v. State of Kerala, 1957 SCC OnLine SC 23 77 Muralilal Mahabir Prasad v. B R Vad, (1975) 2 SCC 736 [28] 78 ITO v. T S Devinatha Nadar, 1967 SCC OnLine SC 52 [30] 79 Central India Spinning and Waving Co. Ltd. v. Municipal Committee, 1957 SCC OnLine SC 18 [5]; CIT v. Shahzada Nand & Sons, 1966 SCC OnLine SC 24 [10]; T S Devinatha Nadar (supra) [25]; Voltas Ltd. v. State of Gujarat, (2015) 7 SCC 527 [24] 80 CIT v. Jargaon Electric Supply Co. Ltd., 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be read along with the amended provisions as though they are part of it. This is for the purpose of determining what the meaning of any particular provision of the Act as amended is, whether it is in the unamended part or in the amended part. But this is the not the same thing as saying that the amendment itself must be taken to have been in existence as from the date of the earlier Act. That would be imputing to the amendment retrospective operation which could only be done if such retrospective operation is given by the amending Act either expressly or by necessary implication."] 115 (2001) 8 SCC 24 116 Shyam Sunder (supra) [28] 117 (1964) 1 SCR 29 118 SC Prashar (supra) 107 119 SC Prashar (supra) 86 120 LDA v. M K Gupta, (1994) 1 SCC 243 [4]; Raj Kumar Shivhare v. Directorate of Enforcement, (2010) 4 SCC 772 [24]; 121 Vivek Narayan Sharma v. Union of India, (2023) 3 SCC 1 [132] 122 Cary Coglianese and Neysun Mahboubi, 'Administrative Law in a Time of Crisis: Comparing National Responses to COVID-19' (2021) 73(1) Administrative Law Review 1, 10. 123 Cebreiro Gomez, et al, COVID-19: Revenue Administration Implications - Potential Tax Administration and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 142 M Siddiq (supra) [1019]; [1026] 143 J & K Public Service Commission v. Narinder Mohan, (1994) 2 SCC 630 [11]. 144 (2017) 7 SCC 444. [22. […] It is important to notice that Article 142 follows upon Article 141 of the Constitution, in which it is stated that the law declared by the Supreme Court shall be binding on all courts within the territory of India. Thus, every judgment delivered by the Supreme Court has two components -- the law declared which binds courts in future litigation between persons, and the doing of complete justice in any cause or matter which is pending before it.] 145 (2019) 4 SCC 197 [30] 146 Article 141, Constitution of India. [It reads: "141. Law declared by Supreme Court to be binding on all courts - The law declared by the Supreme Court shall be binding on all courts within the territory of India."] 147 Also see State of Punjab v. Rafiq Masih, (2014) 8 SCC 883 [12]. [12. […] The Court has compartmentalized and differentiated the relief in the operative portion of the judgment by exercise of powers under Article 142 of the Constitution as against the law declared. The directions of the Court under Article 142 of the Consti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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