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TMI Blog2025 (1) TMI 1345X X X X Extracts X X X X X X X X Extracts X X X X ..... e Judicial Member For the Assessee : Shri Hitesh M. Shah, C.A. For the Revenue : Shri Pushkaraj Bhangepatil, Sr. D/R ORDER PER NARENDRA KUMAR BILLAIYA, AM: This appeal by the assessee is preferred against the order dated 09/08/2024 by NFAC, Delhi [hereinafter 'ld. CIT(A)'], pertaining to AY 2014-15. 2. The grievance of the assessee reads as under:- "GROUNDS OF APPEAL 1) That on the facts and in the circumstances of the case of the appellant and in law Ld. NFAC has erred in not considering and obliging to the order passed by Hon'ble Bombay High Court on 12.03.2024 quashing and setting aside the Notice us. 148 of the Act dated 29.06.2021, Order u/s. 148A(d) of the dated 28.07.2022, Show Cause Notice u/s. 148A(b) of the Act dated 28.05.2022 and impugned Assessment Order u/s. 147 r.w.s. 144B dated 28.05.2023 for A. Y. 2014-15. 2) That on the facts and in the circumstances of the case of the appellant and in law Ld. NFAC has erred in refusing to accept order passed by Hon'ble Bombay High Court in the case of Godrej Industries Ltd. v. The Assistant Commissioner of Income Tax, Circle 14(1)(2), Mumbai and Ors. for A.Y. 2014-15. 3) That on the facts and in the circumst ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of six years which expired on 31/03/2021. 6. We find that now this issue has been settled by the decision of the Hon'ble Supreme Court in the case of UOI vs. Rajeev Bansal in Civil Appeal No. 8629 of 2024, along with other civil appeal numbers. The Hon'ble Supreme Court has considered the submissions made on behalf of the revenue which read as under:- "19. Mr N Venkataraman, learned Additional Solicitor General of India, made the following submissions on behalf of the Revenue: a. Parliament enacted TOLA as a free-standing legislation to provide relief and relaxation to both the assesses and the Revenue during the time of COVID- 19. TOLA seeks to relax actions and proceedings that could not be completed or complied with within the original time limits specified under the Income Tax Act; b. Section 149 of the new regime provides three crucial benefits to the assesses: (i) the four-year time limit for all situations has been reduced to three years; (ii) the first proviso to Section 149 ensures that re-assessment for previous assessment years cannot be undertaken beyond six years; and (iii) the monetary threshold of Rupees fifty lakhs will apply to the reassessment for p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat they were issued beyond the time limit specified under the Income Tax Act read with TOLA will completely frustrate the judicial exercise undertaken by this Court in Ashish Agarwal (supra)." 6.1. From the afore-extracted charts, it can be seen that the revenue has accepted that the expiry of the limitation TOLA for AY 2014-15 would be 30/06/2021. The Hon'ble Supreme Court has explained the extension of TOLA time limit in the following manners:- "54. The proviso to Section 149(1)(b) of the new regime uses the expression "beyond the time limit specified under the provisions of clause (b) of subsection (1) of this section, as they stood immediately before the commencement of the Finance Act, 2021." Thus, the proviso specifically refers to the time limits specified under Section 149(1)(b) of the old regime. The Revenue accepts that without application of TOLA, the time limit for issuance of reassessment notices after 1 April 2021 expires for assessment years 2013-2014, 2014-2015, 2015-2016, 2016-2017, and 2017-2018 in 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; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ner or Director General 74. The above table indicates that the specified authority is directly co-related to the time when the 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 assessee 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oses of computing the period of limitation as per this section, the time or extended time allowed to the assessee, as per show-cause notice issued under clause (b) of section 148A or the period during which the proceeding under section 148A is stayed by an order or injunction of any court, shall be excluded." 96. The third proviso excludes the following periods to calculate the period of limitation: (i) the time allowed to the assessee under Section 148A(b); and (ii) the period during which the proceedings under Section 148A are "stayed by an order or injunction of any court." 9.2. Finally, after analyzing the judgment in the case of Shri Ashish Agarwal (supra) in various time limits provided in the Act and the time extended by TOLA, the Hon'ble Supreme Court concluded as under:- "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. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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