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TMI Blog2025 (2) TMI 444X X X X Extracts X X X X X X X X Extracts X X X X ..... s allowed. X X X X Extracts X X X X X X X X Extracts X X X X ..... proceeding as null and void 3. On the facts and circumstances of the case and in law, the ITO, Ward 28(1)(1), Mumbai was not having the jurisdiction over the appellant as he was a non-resident during the year and, therefore he has erred in passing the order u/s 148A(d) and also issuing the notice uls. 148. 4. On the facts and circumstances of the case and in law, the Assessing Officer has erred in issuing notice under Section 148 although there was no 'information' (as defined in Explanation 1 to Section 148) which was in existence. 5. On the facts and circumstances of the case and in law, the leamed Assessing Officer has erred in passing the assessment order under Section 143(3) rws 144C(3) beyond the time limit provided for completion of the assessment under the provisions of Section 153 as interpreted by Honourable Bombay High Court in the case of Shelf Drilling Ron Tappmeyer Ltd. vs. Assistant Commissioner of Income-tax, International Taxation [2023] 153 taxmann.com 162." 4. Purused the records. Heard learned representative for the appellant assessee and learned DR for the respondent revenue. 5. The assessee has drawn the attention of the bench towards additiona ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... than three years have elapsed from the end of the relevant assessment year Principal Chief Commissioner or Principal Director General or Chief Commissioner 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 s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , then the specified authority under Section 151(i) has an extended time till 30 June 2021 to grant approval. In the case of Section 151 of the old regime, the test is. if the time limit of four years from the end of an assessment year falls between 20 March 2020 and 31 March 2021, then 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 op ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith TOLA, where applicable. 9. In view of aforesaid observations made by Hon'ble Supreme Court, it becomes clear that the prior approval under section 148A(a) and 148(b) were waived, however, the prior approval of the specified authority according to section 151 of the new regime was not waived before passing an order u/s. 148A(d) or issuing a notices u/s. 148 of the Act on or after 01.04.2021 in terms of the decision of Hon'ble Supreme court in Ashish Agarwal (Supra). 10. The provisions of section 151 of the Act under the new regime post Finance Act, 2021, read as under: Sanction for issue of notice. 151. 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 relevant assessment year; (ii) Principal Chief Commissioner or Principal Director General or where there is no Principal Chief Commissioner or Principal Director General, Chief Commissioner or Director General, if more than three years have elapsed from the end of the relevant assessment year. 11. According to the notice u/s. 148 of the Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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