ITO, WARD-2(2), KALYAN V. .HARESHKUMAR JETHANAND TIKMANI, ULHASNAGAR

ITA 4843/MUM/2024

AI Insights

The case involves an appeal by the Income Tax Officer, Ward-2(2), Kalyan against Hareshkumar Jethanand Tikmani concerning the assessment year 2015-16. The appeal was based on the quashing of a notice issued under section 148 of the Income Tax Act, 1961, which was contested by referencing a similar case involving Hexaware Technologies Limited. The legal arguments centered around the interpretation of the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (TOLA) and its impact on the limitation periods for issuing reassessment notices under the Income Tax Act. The Tribunal dismissed the appeal due to the monetary threshold not being met as per the latest CBDT guidelines.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 35482 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-12-2024
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2015-2016
• Other Referred Cases: Hexaware Technologies Limited vs Assistant Commissioner of Income Tax Circle-15(1)(2) Mumbai and Ors, Salili Gulati Vs. Asst. Commissioner of Income Tax Circle-49(1) Delhi and Ors, Union of India vs Ashish Agrawal
• Laws Referred To: Income Tax Act 1961, TOLA, General Clauses Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: HEMANSHU JOSHI; DR
• Assessee Lawyers: MANISHA GHIND; AR
• Keywords: Tax effect; Period of limitation; Time period of passing order
• Section: 148; 64; 6

Judgement Text

"| आयकर अपीलीय अिधकरण \fा यपीठ, मुंबई | IN THE INCOME TAX APPELLATE TRIBUNAL “E” BENCH, MUMBAI BEFORE SHRI NARENDRA KUMAR BILLAIYA, HON’BLE ACCOUNTANT MEMBER & SHRI SANDEEP SINGH KARHAIL, HON’BLE JUDICIAL MEMBER I.T.A. No. 4843/Mum/2024 Assessment Year: 2015-16 ITO, Ward-2(2), Kalyan Vs Hareshkumar Jethanand Tikmani, Ulhasnagar Flant No. 305, Hardwar Apartment Link Road Ulhasnagar Maharashtra - 421002 [PAN: AEAPT4001N] अपीला थ\u0016/ (Appellant) \u0017\u0018 यथ\u0016/ (Respondent) Assessee by : Ms. Manisha Ghind, A/R Revenue by : Shri Hemanshu Joshi, Sr. D/R सुनवाई की तारीख/Date of Hearing : 19/12/2024 घोषणा की तारीख /Date of Pronouncement: 19/12/2024 आदेश/O R D E R PER NARENDRA KUMAR BILLAIYA, AM: This appeal by the revenue is preferred against the order dated 19/07/2024 passed by NFAC, Delhi pertaining to AY 2015-16. 2. The grievance of the assessee reads as under:- “1 Whether on the facts and circumstances of the case and in law, the Ld.CIT(A) Justified in quashing the Notice issued u/s 148 of the Income Tax Act 1961 in the case of the assessee by relying on its finding given in the case of Hexaware Technologies Limited vs Assistant Commissioner of Income Tax Circle-15(1)(2) Mumbai and Ors in Writ Petition No. 1778 of 2023 2 Whether a plain and literal construction of Section 3(1) of the TOLA permits that in all cases where \"such action could not be completed/complied with within the Limitation period, provided under the specified Act, such action could be completed/complied with during the extended period granted under Section 3(1) of TOLA in accordance with the law as it stood prior to 31/03/2021? 3 Whether on a plain and literal construction of Section 3(1) of TOLA it would follow that in all cases in which Notices u/s 148 of the Income Tax Act, 1961 issued I.T.A. No. 4843/Mum/2024 2 between 01/04/2021 and 30/06/2021 as a result of the extension/relaxation granted under the TOLA, it would be Sections 147, 148, 149 and 15l as they stood prior to their amendment by way of the Finance Act, 2021, that would govern such Notices? 4 Whether section 6 of the General Clauses Act would allow notices to be issued and proceedings instituted under the unamended Ss. 147, 148, 149 and 15l since by operation of S. 3(l) of TOLA a power/right of action is accrued in favour of the revenue to re-open within an extended time-period where the time limit for such action expired between 20/03/2020 and 31/03/2021? 5 Whether the power to take such action under the unamended S. 147, 148, 149 und 151 of Income Tax Act, 1961 saved by S.3(I) of TOLA can be said to be obliterated by Finance Act, 2021 when there is no such intention to destroy the old rights and liabilities kept alive by TOLA for a limited period of time? 6 Whether on the facts, in the circumstances of the case and in Law, the Lat CITIA) has erred in not appreciating that the Hon'ble Delhi High Court has vide order dated 31-08-2022 in the case of Salili Gulati Vs. Asst. Commissioner of Income Tax Cirele-49(1) Delhi and Ors. (cited supra) has upheld the department's stand that the decision of the Supreme Court in Union of India vs Ashish Agrawal SC 543 read with the time extension provided by Taxation and Other Lows (Relaxation and Amendment of Certain Provisions) Act, 2020 (for short TOLA) allows extended reassessment notices to travel back in time to their original date when such notices were to be issued and then new Section 149 of the Act is to be applied at that point. 7 Whether on the facts and circumstances of the case and in law, the Hon’ble High Court has erred in disregarding the mandate of Hon'ble Supreme Court in the case of Union of India vs Ashish Agrawal (2022) 138 taxmann.com 64 (SC) dated 04/05/2022 that all the notices issued by Revenue u/s 148 between 01/04/2021 30/06/2021 are deemed notices issues u/s. 148A (b) of the Act meaning thereby that these notices are valid notices and not barred by limitation. 8 The order of the CIT(A) may be vacated & that of the Assessing Officer may be restored. 9 The appellant craves leave to add, amend, alter or delete any ground of appeal.” 3. A perusal of the grounds read with the assessment order show that the tax effect is less than Rs. 60 Lakhs and, therefore, this appeal has to be dismissed in light of the CBDT Circular No. 09/2024, dated 17th September, 2024. I.T.A. No. 4843/Mum/2024 3 4. However, if the AO finds that the impugned appeal by the revenue is covered under the exemptions given in the CBDT Circular (supra), the AO made approach the Tribunal as per the provisions of law. For the moment, the appeal is dismissed. 5. In the result, appeal of the revenue is dismissed. Order pronounced in the Court on 19th December, 2024 at Mumbai. Sd/- Sd/- (SANDEEP SINGH KARHAIL) (NARENDRA KUMAR BILLAIYA) JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai, Dated 19/12/2024 *SC SrPs *SC SrPs *SC SrPs *SC SrPs आदेश की \u0014ितिलिप अ\u0019ेिषत /Copy of the Order forwarded to : 1. अपीलाथ\u001b / The Appellant 2. \u0014\u001cथ\u001b / The Respondent 3. संबंिधत आयकर आयु! / Concerned Pr. CIT 4. आयकर आयु! ) अपील ( / The CIT(A)- 5. िवभागीय \u0014ितिनिध ,आयकर अपीलीय अिधकरण, मुंबई /DR,ITAT, Mumbai, 6. गाड% फाई/ Guard file. आदेशानुसार/ BY ORDER, TRUE COPY Assistant Registrar आयकर अपीलीय अिधकरण ITAT, Mumbai "