9911796707
TMI Blog2025 (1) TMI 1548X X X X Extracts X X X X X X X X Extracts X X X X ..... ised various grounds contending the reassessment both on legal grounds as well as on merits. During the course of hearing, the ld. AR present the arguments with regard to Ground No.2 wherein the assessee has challenged the validity of reassessment proceedings for the reason that notice under section 148 of the Act dated 28.07.2022 is barred by limitation. 2. The assessee is a company incorporated in Singapore and is registered as Foreign Portfolio Investor (FTI) under Securities and Exchange Board of India (SEBI). Assessee is primarily engaged investing in securities including equity shares, debt security and derivatives, etc. For the AY 2015-16 the assessee filed a return of income on 30.09.2015. During the year under consideration, the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... final order of assessment passed by the AO as per the directions of the DRP. 3. The ld. AR submitted that the notice dated 28.07.2022 issued under section 148 of the Act is barred by limitation since the same was issued after the expiry of the time limit of 6 years from the end of the AY as per the provisions of section 149 of the Act under the new regime. The ld. AR submitted that the time limit for issue of notice under section 148 of the Act for AY 2015-16 expires on 31.03.2022 and therefore, the notice issued in assessee's case on 28.07.2022 is beyond time limit specified under the Act. Accordingly, the ld. AR submitted that the consequent reassessment proceedings would be rendered void and liable to be quashed. The ld. AR placed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tuted the old regime for reassessment with a new regime. The first proviso to section 149 does not expressly bar the application of Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 Section 3 of the Taxation and other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 applies to the entire Income-tax Act, including sections 149 and 151 of the new regime. Once the first proviso to section 149(1)(b) is read with Taxation and other Lows (Relaxation and Amendment of Certain Provisions) Act, 2020, then all the notices issued between April 1, 2021 and June 30, 2021 pertaining to the assessment years 2013-2014, 2014-2015, 2015-2016, 2016-2017, and 2017-2018 will be within the period of limitation as ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eneral of India, made the following submissions on behalf of the Revenue: (a) to (e)**** (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; ****** 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 secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... years has expired at the time of issue of such notice and in that case the notice under section 148 becomes invalid. These observations also makes it clear that the time limit of ten years as per the amended provisions of section 149(1)(b) can be applied only prospectively. In assessee's case when we apply this test for AY 2015-16, the period of six years has expired on 31.03.2022 and therefore the notice dated 28.07.2022 under section 148 of the Act for AY 2015-16 is invalid since it is barred by limitation. Accordingly the assessment completed under section 147 of the Act is liable to be quashed. 8. The assessee has also raised Ground No.3 contending that reassessment done under section 147 r.w.s. 144C is done beyond time limit speci ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
