Reconciling Procedural Timelines with Limitation Periods in Income Tax Reassessments

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..... presents a significant interpretation of the time limitations applicable to reassessment proceedings under the Income Tax Act, particularly in light of the amendments introduced by the Finance Act, 2021 and the impact of the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (TOLA). The case addresses crucial questions regarding the interplay between various statuto .....

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..... before issuing reassessment notice - Section 149(1) prescribing limitation periods of 3 years (general cases) and 10 years (specific cases) - The provisos to Section 149(1) regarding exclusion of certain time periods 2. Impact of TOLA The court noted that TOLA extended time limits falling between 20.03.2020 to 31.12.2020 until 30.06.2021. This extension was relevant because: - The original limi .....

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..... d between 01.06.2021 and 04.05.2022 (Ashish Agarwal decision date) - Period between 04.05.2022 and 30.05.2022 (material provision date) - Two weeks granted for assessee's response - Remaining 29 days from TOLA extension Key Holdings and Reasoning 1. Time Limit Calculation: The court held that the AO had only 29 days from 13.06.2022 (when assessee's response was received) to complete both .....

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