AI Insights
The case revolves around the legality of reassessment notices issued under Section 148 of the Income Tax Act, 1961, for the Assessment Year 2015-2016. The petitioner challenged the notices on the grounds that they were issued after the amendment of the Finance Act, 2021, which introduced new procedural requirements for such notices. The Supreme Court's decision in Union of India and Others Vs. Ashish Aggarwal was pivotal, as it established that notices issued under the old regime post-amendment were invalid unless they complied with the new procedures. The High Court, following this precedent, set aside the notices and allowed the writ petition.
Appeal Details
Counselvise Citation
[2025] 140 COUNSELVISE.COM (IT) 795920 (HC-MISC)
Assessee PAN
Bench
Appeal Number
CRN Number
Appellant
Respondent
Appeal Type
Others
Pronouncement Date
10-03-2025
Assessment Year
misc
Judgement Text
" CWP-4112-2024 IN THE HIGH COURT OF PUNJAB AND HARYANA Krishan Kedia Income Tax Officer CORAM : HON’BLE MR. JUSTICE HON’BLE MRS. JUSTICE Present: Mr. Ms. Gauri Neo Rampal, for the respondents. (through Video SUDEEPTI SHARMA, J. The challenge in the present writ petition is to under Section 148 of Income Tax Act, 1961 for the Assessment Year 2015 along with reassessment under Section 147 of the Income Tax 26.05.2023 for the Assessment Year 2015 BRIEF FACTS 2. The present case of the petitioner pertains to the Assessment Year 2015-2016. Brief facts of the present case that the petitioner was Assessment Year 2015 force of Finance Act, 2021 whereby Sections 147 to 151 of the Income Tax Act, 1961 were substituted. 2024 (O&M) IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH -.- CWP Decided on : VERSUS Income Tax Officer & Others HON’BLE MR. JUSTICE ARUN PALLI HON’BLE MRS. JUSTICE SUDEEPTI SHARMA Mr. Nitin Kanwar, Advocate for the petitioner. Ms. Gauri Neo Rampal, Sr. Standing Counsel for the respondents. (through Video Conferencing) -.- SUDEEPTI SHARMA, J. The challenge in the present writ petition is to under Section 148 of Income Tax Act, 1961 for the Assessment Year 2015 along with reassessment under Section 147 of the Income Tax 26.05.2023 for the Assessment Year 2015-2016. BRIEF FACTS The present case of the petitioner pertains to the Assessment Year Brief facts of the present case as per pleadings in the writ petition petitioner was issued notice under Section 148 on 06.04.2021 Assessment Year 2015-2016 i.e. after 01.04.2021, which is the date of coming into force of Finance Act, 2021 whereby Sections 147 to 151 of the Income Tax Act, 1961 were substituted. Notice under Section 142(1) -1- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CWP-4112-2024 (O&M) Decided on :- 10.03.2025 ....Petitioner ....Respondents ARUN PALLI SUDEEPTI SHARMA , Advocate for the petitioner. Sr. Standing Counsel, The challenge in the present writ petition is to notice dated 27.07.2022 under Section 148 of Income Tax Act, 1961 for the Assessment Year 2015-20 along with reassessment under Section 147 of the Income Tax Act, 1961, dated 2016. The present case of the petitioner pertains to the Assessment Year per pleadings in the writ petition issued notice under Section 148 on 06.04.2021 for the 01.04.2021, which is the date of coming into force of Finance Act, 2021 whereby Sections 147 to 151 of the Income Tax Act, on 142(1) of the Income Tax, 1961 was notice dated 27.07.2022 2016 Act, 1961, dated The present case of the petitioner pertains to the Assessment Year are for the 01.04.2021, which is the date of coming into force of Finance Act, 2021 whereby Sections 147 to 151 of the Income Tax Act, was TRIPTI SAINI 2025.04.11 09:48 I attest to the accuracy and integrity of this document CWP-4112-2024 issued on 27.11.2021 was transferred to NeFAC and to ReFAC on 08.12.2021. Therefore again notice under Section 142(1) Another show cause notice dated 19.03.2022 with draft assessment order served to the petitioner 23.03.2022. Thereafter the petitioner was served with notice dated 26.05. under Section 148A(b) 2015-2016 in view of the Supreme Court in ONLINE SC 543 Tax Act, 1961 was issued for the Assessment Year 2015 the judgment of Hon’ble Supreme Court dated 04.05.2022 Others Vs. Ashish Aggarwal notice under Section 148 of the Income Tax Act, 1961 for the Assessment Year 2015-2016 was issued to the petitioner. Petitioner filed reply to the same. On 02.11.2022, intimation was sent to the assessee for completion of assessment i accordance with the procedure under Section 144B of the Income Tax Act, 1961. Notice dated 27.01.2023 under Section 142(1) of the Income Tax Act, 1961 was issued to the petitioner. under the Income T Assessment Year 2015 bank account of the assessee to the tune of Rs.2,18,60,116/ unexplained and added to his income under 1961 to be taxed as per Section 115BB 2024 (O&M) issued on 27.11.2021 for the Assessment Year 2015 was transferred to NeFAC and to ReFAC on 08.12.2021. Therefore again notice under Section 142(1) of the Income Tax Act, 1961 Another show cause notice dated 19.03.2022 with draft assessment order to the petitioner. Reply to the same was submitted by the petitioner on 23.03.2022. Thereafter the petitioner was served with notice dated 26.05. under Section 148A(b) of the Income Tax Act, 1961 2016 in view of the judgment dated 04.05.2022 passed by the Hon’ble Supreme Court in Union of India and Others Vs. Ashish Aggarwal ONLINE SC 543. On 27.07.2022, notice under Section 148A Tax Act, 1961 was issued for the Assessment Year 2015 the judgment of Hon’ble Supreme Court dated 04.05.2022 Others Vs. Ashish Aggarwal [2022] SCC ONLINE SC 543 notice under Section 148 of the Income Tax Act, 1961 for the Assessment Year 2016 was issued to the petitioner. Petitioner filed reply to the same. On 02.11.2022, intimation was sent to the assessee for completion of assessment i accordance with the procedure under Section 144B of the Income Tax Act, 1961. Notice dated 27.01.2023 under Section 142(1) of the Income Tax Act, 1961 was issued to the petitioner. Thereafter, after following the procedure as laid down under the Income Tax Act, 1961, assessment order dated 26.05.2023 for the Assessment Year 2015-2016 was passed vide which the total credited entries in the bank account of the assessee to the tune of Rs.2,18,60,116/ unexplained and added to his income under Section 69A of the Income Tax Act, 1961 to be taxed as per Section 115BBE of Income Tax Act, 1961. -2- for the Assessment Year 2015-2016 and thereafter, the case was transferred to NeFAC and to ReFAC on 08.12.2021. Therefore again notice of the Income Tax Act, 1961 was issued on 22.12.2021. Another show cause notice dated 19.03.2022 with draft assessment order was . Reply to the same was submitted by the petitioner on 23.03.2022. Thereafter the petitioner was served with notice dated 26.05.2022 of the Income Tax Act, 1961 for the Assessment Year judgment dated 04.05.2022 passed by the Hon’ble Union of India and Others Vs. Ashish Aggarwal [2022] SCC notice under Section 148A(d) of the Income Tax Act, 1961 was issued for the Assessment Year 2015-2016 in consequence to the judgment of Hon’ble Supreme Court dated 04.05.2022 in Union of India and [2022] SCC ONLINE SC 543. On 27.07.2022 itself notice under Section 148 of the Income Tax Act, 1961 for the Assessment Year 2016 was issued to the petitioner. Petitioner filed reply to the same. On 02.11.2022, intimation was sent to the assessee for completion of assessment i accordance with the procedure under Section 144B of the Income Tax Act, 1961. Notice dated 27.01.2023 under Section 142(1) of the Income Tax Act, 1961 was Thereafter, after following the procedure as laid down assessment order dated 26.05.2023 for the 2016 was passed vide which the total credited entries in the bank account of the assessee to the tune of Rs.2,18,60,116/- were treated as Section 69A of the Income Tax Act, E of Income Tax Act, 1961. and thereafter, the case was transferred to NeFAC and to ReFAC on 08.12.2021. Therefore again notice was issued on 22.12.2021. was . Reply to the same was submitted by the petitioner on 2022 for the Assessment Year judgment dated 04.05.2022 passed by the Hon’ble [2022] SCC of the Income in consequence to Union of India and On 27.07.2022 itself notice under Section 148 of the Income Tax Act, 1961 for the Assessment Year 2016 was issued to the petitioner. Petitioner filed reply to the same. On 02.11.2022, intimation was sent to the assessee for completion of assessment in accordance with the procedure under Section 144B of the Income Tax Act, 1961. Notice dated 27.01.2023 under Section 142(1) of the Income Tax Act, 1961 was Thereafter, after following the procedure as laid down assessment order dated 26.05.2023 for the 2016 was passed vide which the total credited entries in the were treated as Section 69A of the Income Tax Act, TRIPTI SAINI 2025.04.11 09:48 I attest to the accuracy and integrity of this document CWP-4112-2024 3. Hence the present petition challenging under Section 148 of the Income Tax Act, 1961 along with order dated 26.05.2023 i.e. order under Section 147 read with Sections 144 and 144B of the Income Tax Act, 1961 for the Assessment Year 2015 barred by limitation. SUBMISSIONS 4. Learned counsel for the petitioner contends a) T Income Tax Act, 1961 was barred by limitation in view of the coming into force of Finance Act, 2021, therefore the assessment order under Section in the eyes of law. b) settled by the Hon’ble Supreme Court in the case of Vs. Rajeev Bansal [2024] 469 ITR 46 (SC) Therefore, the present writ petition be allowed in terms of the settled proposition of law in the case of (Supra) 5. Learned counsel for the respondent proposition of law as Rajeev Bansal 6. We have heard learned counsel for the record of the present case 2024 (O&M) Hence the present petition challenging under Section 148 of the Income Tax Act, 1961 along with order dated 26.05.2023 .e. order under Section 147 read with Sections 144 and 144B of the Income Tax Act, 1961 for the Assessment Year 2015-2016 barred by limitation. SUBMISSIONS Learned counsel for the petitioner contends That since notice dated 27.07.2022 issued under Section 148 of the Income Tax Act, 1961 was barred by limitation in view of the coming into force of Finance Act, 2021, therefore the assessment order under Section 147 of the Income Tax Act, 1961 dated 26.05. in the eyes of law. Further, that controversy in the present writ petition is already settled by the Hon’ble Supreme Court in the case of Vs. Rajeev Bansal [2024] 469 ITR 46 (SC) Therefore, the present writ petition be allowed in terms of the settled proposition of law in the case of Union of India Vs. Rajeev Bansal (Supra). earned counsel for the respondent proposition of law as settled by Hon’ble Supreme Court (Supra), by which the case of the petitioner is covered. We have heard learned counsel for the present case. -3- Hence the present petition challenging notice dated 27.07.2022 issued under Section 148 of the Income Tax Act, 1961 along with order dated 26.05.2023 .e. order under Section 147 read with Sections 144 and 144B of the Income Tax 2016 on the ground that the same are Learned counsel for the petitioner contends:- hat since notice dated 27.07.2022 issued under Section 148 of the Income Tax Act, 1961 was barred by limitation in view of the coming into force of Finance Act, 2021, therefore the assessment order under 47 of the Income Tax Act, 1961 dated 26.05.2023 is also bad Further, that controversy in the present writ petition is already settled by the Hon’ble Supreme Court in the case of Union of India Vs. Rajeev Bansal [2024] 469 ITR 46 (SC) on 03.10.2024. Therefore, the present writ petition be allowed in terms of the settled Union of India Vs. Rajeev Bansal earned counsel for the respondents could not rebut the legal settled by Hon’ble Supreme Court in Union of India Vs. by which the case of the petitioner is covered. We have heard learned counsel for the parties and perused the whole notice dated 27.07.2022 issued under Section 148 of the Income Tax Act, 1961 along with order dated 26.05.2023 .e. order under Section 147 read with Sections 144 and 144B of the Income Tax on the ground that the same are hat since notice dated 27.07.2022 issued under Section 148 of the Income Tax Act, 1961 was barred by limitation in view of the coming into force of Finance Act, 2021, therefore the assessment order under bad Further, that controversy in the present writ petition is already Union of India on 03.10.2024. Therefore, the present writ petition be allowed in terms of the settled Union of India Vs. Rajeev Bansal legal Union of India Vs. and perused the whole TRIPTI SAINI 2025.04.11 09:48 I attest to the accuracy and integrity of this document CWP-4112-2024 JOINT READING UNION OF INDIA AND OTHERS VS. ASHISH AGGARWAL [2022] SCC ONLINE SC 543 AND UNION OF INDIA VS. RAJEEV BANSAL [2024] 469 ITR 46 (SC) CONCLUDES AS UNDER 7. The Finance Act, 2021 substituted the entire scheme of under Sections 1 8. Prior to the coming into force of Finance Act, 2021 initiation of reassessment proceedings was governed by the following provisions Tax Act, 1961:- \"Income 147 chargeable to tax has escaped assessment for any assessment year, he may, subject to the provisions of sections 148 to 153, assess or reassess such income and also an which has escaped assessment and which comes to his notice subsequently in the course of the proceedings under this section, or recomputed the loss or the depreciation allowance or any other allowance, as the case may be, f (hereafter in this section and in sections 148 to 153 referred to as the relevant assessment year): Provided that where an assessment under sub 143 or this section has action shall be taken under this section after the expiry of four years from the end of the relevant assessment year, unless any income 2024 (O&M) READING OF JUDGMENTS OF HON’BLE SUPREME COURT IN UNION OF INDIA AND OTHERS VS. ASHISH AGGARWAL [2022] SCC ONLINE SC 543 AND UNION OF INDIA VS. RAJEEV BANSAL [2024] 469 CONCLUDES AS UNDER:- The Finance Act, 2021 substituted the entire scheme of under Sections 147 to 151 of the Income Tax Act, 1961 Prior to the coming into force of Finance Act, 2021 initiation of reassessment proceedings was governed by the following provisions - Income escaping assessment 147. If the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment for any assessment year, he may, subject to the provisions of sections 148 to 153, assess or reassess such income and also an which has escaped assessment and which comes to his notice subsequently in the course of the proceedings under this section, or recomputed the loss or the depreciation allowance or any other allowance, as the case may be, for the assessment year concerned (hereafter in this section and in sections 148 to 153 referred to as the relevant assessment year): Provided that where an assessment under sub 143 or this section has been made for the relevant asse action shall be taken under this section after the expiry of four years from the end of the relevant assessment year, unless any income -4- HON’BLE SUPREME COURT IN UNION OF INDIA AND OTHERS VS. ASHISH AGGARWAL [2022] SCC ONLINE SC 543 AND UNION OF INDIA VS. RAJEEV BANSAL [2024] 469 The Finance Act, 2021 substituted the entire scheme of reassessment 47 to 151 of the Income Tax Act, 1961 w.e.f.01.04.2021. Prior to the coming into force of Finance Act, 2021 initiation of reassessment proceedings was governed by the following provisions of Income If the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment for any assessment year, he may, subject to the provisions of sections 148 to 153, assess or reassess such income and also any other income chargeable to tax which has escaped assessment and which comes to his notice subsequently in the course of the proceedings under this section, or recomputed the loss or the depreciation allowance or any other allowance, as the case may be, for the assessment year concerned (hereafter in this section and in sections 148 to 153 referred to as the Provided that where an assessment under sub-section (3) of section been made for the relevant assessment year, no action shall be taken under this section after the expiry of four years from the end of the relevant assessment year, unless any income HON’BLE SUPREME COURT IN UNION OF INDIA AND OTHERS VS. ASHISH AGGARWAL [2022] SCC ONLINE SC 543 AND UNION OF INDIA VS. RAJEEV BANSAL [2024] 469 reassessment Prior to the coming into force of Finance Act, 2021 initiation of of Income If the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment for any assessment year, he may, subject to the provisions of sections 148 to 153, assess or y other income chargeable to tax which has escaped assessment and which comes to his notice subsequently in the course of the proceedings under this section, or recomputed the loss or the depreciation allowance or any other or the assessment year concerned (hereafter in this section and in sections 148 to 153 referred to as the section (3) of section ssment year, no action shall be taken under this section after the expiry of four years from the end of the relevant assessment year, unless any income TRIPTI SAINI 2025.04.11 09:48 I attest to the accuracy and integrity of this document CWP-4112-2024 chargeable to tax has escaped assessment for such assessment year by reason of the failure on the part o under section 139 or in response to a notice issued under sub (1) of section 142 or section 148 or to disclose fully and truly all material facts necessary for his assessment, for that assessment year: Provided fur apply in a case where any income in relation to any asset (including financial interest in any entity) located outside India, chargeable to tax, has escaped assessment for any assessment year: Provid income, other than the income involving matters which are the subject matters of any appeal, reference or revision, which is chargeable to tax and has escaped assessment. Explanation 1. books or other evidence from which material evidence could with due diligence have been discovered by the Assessing Officer will not necessarily amount to disclosure within the meaning of the foregoing proviso. Explanation 2. also be deemed to be cases where income chargeable to tax has escaped assessment, namely : 2024 (O&M) chargeable to tax has escaped assessment for such assessment year by reason of the failure on the part o under section 139 or in response to a notice issued under sub (1) of section 142 or section 148 or to disclose fully and truly all material facts necessary for his assessment, for that assessment year: Provided further that nothing contained in the first proviso shall apply in a case where any income in relation to any asset (including financial interest in any entity) located outside India, chargeable to tax, has escaped assessment for any assessment year: Provided also that the Assessing Officer may assess or reassess such income, other than the income involving matters which are the subject matters of any appeal, reference or revision, which is chargeable to tax and has escaped assessment. Explanation 1.-Production before the Assessing Officer of account books or other evidence from which material evidence could with due diligence have been discovered by the Assessing Officer will not necessarily amount to disclosure within the meaning of the foregoing proviso. Explanation 2.-For the purposes of this section, the following shall also be deemed to be cases where income chargeable to tax has escaped assessment, namely :- (a) where no return of income has been furnished by the assessee although his total income o -5- chargeable to tax has escaped assessment for such assessment year by reason of the failure on the part of the assessee to make a return under section 139 or in response to a notice issued under sub-section (1) of section 142 or section 148 or to disclose fully and truly all material facts necessary for his assessment, for that assessment year: ther that nothing contained in the first proviso shall apply in a case where any income in relation to any asset (including financial interest in any entity) located outside India, chargeable to tax, has escaped assessment for any assessment year: ed also that the Assessing Officer may assess or reassess such income, other than the income involving matters which are the subject matters of any appeal, reference or revision, which is chargeable to ction before the Assessing Officer of account books or other evidence from which material evidence could with due diligence have been discovered by the Assessing Officer will not necessarily amount to disclosure within the meaning of the foregoing For the purposes of this section, the following shall also be deemed to be cases where income chargeable to tax has (a) where no return of income has been furnished by the assessee although his total income or the total income of any chargeable to tax has escaped assessment for such assessment year by f the assessee to make a return section (1) of section 142 or section 148 or to disclose fully and truly all material facts necessary for his assessment, for that assessment year: ther that nothing contained in the first proviso shall apply in a case where any income in relation to any asset (including financial interest in any entity) located outside India, chargeable to ed also that the Assessing Officer may assess or reassess such income, other than the income involving matters which are the subject matters of any appeal, reference or revision, which is chargeable to ction before the Assessing Officer of account books or other evidence from which material evidence could with due diligence have been discovered by the Assessing Officer will not necessarily amount to disclosure within the meaning of the foregoing For the purposes of this section, the following shall also be deemed to be cases where income chargeable to tax has (a) where no return of income has been furnished by the r the total income of any TRIPTI SAINI 2025.04.11 09:48 I attest to the accuracy and integrity of this document CWP-4112-2024 2024 (O&M) other person in respect of which he is assessable under this Act during the previous year exceeded the maximum amount which is not chargeable to income-tax; (b) where a return of income has been furnished by the assessee but no assessment has been made and it is noticed by the Assessing Officer that the assessee has understated the income or has claimed excessive loss, deduction, allowance or relief in the return; (ba) where the assessee has failed to furnish a report in respect of any international transaction which he was so required under section 92E; (c) where an assessment has been made, but (i) income chargeable to tax has been underassessed; or (ii) such income has been assessed at too low a rate; or (iii) such income has been made the subject of excessive relief under this Act; or (iv) excessive loss or depreciation allowance or any other allowance under this Act has been computed; (ca) where a return of income has not been furnished by the assessee or a return of income has been furnished by him and on the basis of information or document received from the prescribed income-tax authority, under sub section 133C, it is noticed by the Assessing Officer that the income of the assessee ex -6- other person in respect of which he is assessable under this Act during the previous year exceeded the maximum amount which tax; (b) where a return of income has been furnished by the ssessment has been made and it is noticed by the Assessing Officer that the assessee has understated the income or has claimed excessive loss, deduction, allowance or (ba) where the assessee has failed to furnish a report in respect of any international transaction which he was so required (c) where an assessment has been made, but- (i) income chargeable to tax has been underassessed; or (ii) such income has been assessed at too low a rate; or (iii) such income has been made the subject of excessive relief (iv) excessive loss or depreciation allowance or any other allowance under this Act has been computed; (ca) where a return of income has not been furnished by the or a return of income has been furnished by him and on the basis of information or document received from the tax authority, under sub-section (2) of section 133C, it is noticed by the Assessing Officer that the income of the assessee exceeds the maximum amount not other person in respect of which he is assessable under this Act during the previous year exceeded the maximum amount which (b) where a return of income has been furnished by the ssessment has been made and it is noticed by the Assessing Officer that the assessee has understated the income or has claimed excessive loss, deduction, allowance or (ba) where the assessee has failed to furnish a report in respect of any international transaction which he was so required (iii) such income has been made the subject of excessive relief (iv) excessive loss or depreciation allowance or any other (ca) where a return of income has not been furnished by the or a return of income has been furnished by him and on the basis of information or document received from the section (2) of section 133C, it is noticed by the Assessing Officer that the ceeds the maximum amount not TRIPTI SAINI 2025.04.11 09:48 I attest to the accuracy and integrity of this document CWP-4112-2024 Explanation 3. this section, the Assessing Officer may assess or reassess the income in respect of any issue, which has escaped assessment, and such issue comes to his notice subsequently in the course of the proceedings under this section, notwithstanding that the reasons for such issue have not been included in the reasons recorded under subsection (2) of section 148. Explanation 4. the provisions of this section, as amended by the Finance Act, 2012, shall also be applicable for any assessment year beginning on or before the 1st day of April, 2012. Issue of notice where income has escaped assessment 148. recomputation under section 147, the Assessing Officer shall serve on the assessee a notice requiring him to furnish within such period, as may be specified in the notice, a return of his income or the inc any other person in respect of which he is assessable under this Act during the previous year corresponding to the relevant assessment year, in the prescribed form and verified in the prescribed manner 2024 (O&M) chargeable to tax, or as the case may be, the assessee has understated the income or has claimed excessive loss, deduction, allowance or relief in the return; (d) where a person is found to have any asset (including financial interest in any entity) located outside India. Explanation 3.-For the purpose of assessment or reassessment under this section, the Assessing Officer may assess or reassess the income in respect of any issue, which has escaped assessment, and such issue mes to his notice subsequently in the course of the proceedings under this section, notwithstanding that the reasons for such issue have not been included in the reasons recorded under subsection (2) of section 148. Explanation 4.-For the removal of doubts the provisions of this section, as amended by the Finance Act, 2012, shall also be applicable for any assessment year beginning on or before the 1st day of April, 2012. Issue of notice where income has escaped assessment 148. (1) Before making the assessment, reassessment or recomputation under section 147, the Assessing Officer shall serve on the assessee a notice requiring him to furnish within such period, as may be specified in the notice, a return of his income or the inc any other person in respect of which he is assessable under this Act during the previous year corresponding to the relevant assessment year, in the prescribed form and verified in the prescribed manner -7- chargeable to tax, or as the case may be, the assessee has understated the income or has claimed excessive loss, deduction, allowance or relief in the return; (d) where a person is found to have any asset (including nterest in any entity) located outside India. For the purpose of assessment or reassessment under this section, the Assessing Officer may assess or reassess the income in respect of any issue, which has escaped assessment, and such issue mes to his notice subsequently in the course of the proceedings under this section, notwithstanding that the reasons for such issue have not been included in the reasons recorded under subsection (2) For the removal of doubts, it is hereby clarified that the provisions of this section, as amended by the Finance Act, 2012, shall also be applicable for any assessment year beginning on or Issue of notice where income has escaped assessment (1) Before making the assessment, reassessment or recomputation under section 147, the Assessing Officer shall serve on the assessee a notice requiring him to furnish within such period, as may be specified in the notice, a return of his income or the income of any other person in respect of which he is assessable under this Act during the previous year corresponding to the relevant assessment year, in the prescribed form and verified in the prescribed manner chargeable to tax, or as the case may be, the assessee has understated the income or has claimed excessive loss, (d) where a person is found to have any asset (including For the purpose of assessment or reassessment under this section, the Assessing Officer may assess or reassess the income in respect of any issue, which has escaped assessment, and such issue mes to his notice subsequently in the course of the proceedings under this section, notwithstanding that the reasons for such issue have not been included in the reasons recorded under subsection (2) , it is hereby clarified that the provisions of this section, as amended by the Finance Act, 2012, shall also be applicable for any assessment year beginning on or (1) Before making the assessment, reassessment or recomputation under section 147, the Assessing Officer shall serve on the assessee a notice requiring him to furnish within such period, as ome of any other person in respect of which he is assessable under this Act during the previous year corresponding to the relevant assessment year, in the prescribed form and verified in the prescribed manner TRIPTI SAINI 2025.04.11 09:48 I attest to the accuracy and integrity of this document CWP-4112-2024 and setting forth such other particulars as may provisions of this Act shall, so far as may be, apply accordingly as if such return were a return required to be furnished under section 139: Provided that in a case (a) where a return has been furnished during the period commenc on the 1st day of October, 1991 and ending on the 30th day of September, 2005 in response to a notice served under this section, and (b) subsequently a notice has been served under sub section 143 after the expiry of twelve months specif to subsection (2) of section 143, as it stood immediately before the amendment of said sub but before the expiry of the time limit for making the assessment, re assessment or recomputation as 153, every such notice referred to in this clause shall be deemed to be a valid notice: Provided further that in a case (a) where a return has been furnished during the period commencing on the 1st day of October September, 2005, in response to a notice served under this section, and (b) subsequently a notice has been served under clause (ii) of sub section (2) of section 143 after the expiry of twelve months specified in the p before the expiry of the time limit for making the assessment, 2024 (O&M) and setting forth such other particulars as may provisions of this Act shall, so far as may be, apply accordingly as if such return were a return required to be furnished under section 139: Provided that in a case- (a) where a return has been furnished during the period commenc on the 1st day of October, 1991 and ending on the 30th day of September, 2005 in response to a notice served under this section, and (b) subsequently a notice has been served under sub section 143 after the expiry of twelve months specif to subsection (2) of section 143, as it stood immediately before the amendment of said sub-section by the Finance Act, 2002 (20 of 2002) but before the expiry of the time limit for making the assessment, re assessment or recomputation as specified in sub 153, every such notice referred to in this clause shall be deemed to be a valid notice: Provided further that in a case- (a) where a return has been furnished during the period commencing on the 1st day of October, 1991 and ending on the 30th day of September, 2005, in response to a notice served under this section, and (b) subsequently a notice has been served under clause (ii) of sub section (2) of section 143 after the expiry of twelve months specified in the proviso to clause (ii) of sub before the expiry of the time limit for making the assessment, -8- and setting forth such other particulars as may be prescribed; and the provisions of this Act shall, so far as may be, apply accordingly as if such return were a return required to be furnished under section 139: (a) where a return has been furnished during the period commenc on the 1st day of October, 1991 and ending on the 30th day of September, 2005 in response to a notice served under this section, and (b) subsequently a notice has been served under sub-section (2) of section 143 after the expiry of twelve months specified in the proviso to subsection (2) of section 143, as it stood immediately before the section by the Finance Act, 2002 (20 of 2002) but before the expiry of the time limit for making the assessment, re specified in sub-section (2) of section 153, every such notice referred to in this clause shall be deemed to be (a) where a return has been furnished during the period commencing , 1991 and ending on the 30th day of September, 2005, in response to a notice served under this section, (b) subsequently a notice has been served under clause (ii) of sub section (2) of section 143 after the expiry of twelve months specified roviso to clause (ii) of sub-section (2) of section 143, but before the expiry of the time limit for making the assessment, be prescribed; and the provisions of this Act shall, so far as may be, apply accordingly as if such return were a return required to be furnished under section 139: (a) where a return has been furnished during the period commencing on the 1st day of October, 1991 and ending on the 30th day of September, 2005 in response to a notice served under this section, and section (2) of ied in the proviso to subsection (2) of section 143, as it stood immediately before the section by the Finance Act, 2002 (20 of 2002) but before the expiry of the time limit for making the assessment, re- section (2) of section 153, every such notice referred to in this clause shall be deemed to be (a) where a return has been furnished during the period commencing , 1991 and ending on the 30th day of September, 2005, in response to a notice served under this section, (b) subsequently a notice has been served under clause (ii) of sub- section (2) of section 143 after the expiry of twelve months specified section (2) of section 143, but before the expiry of the time limit for making the assessment, TRIPTI SAINI 2025.04.11 09:48 I attest to the accuracy and integrity of this document CWP-4112-2024 reassessment or recomputation as specified in sub section 153, every such notice referred to in this clause shall be deemed to be a valid notice. Explanation. nothing contained in the first proviso or the second proviso shall apply to any return which has been furnished on or after the 1st day of October, 2005 in res (2) The Assessing Officer shall, before issuing any notice under this section, record his reasons for doing so. Time limit for notice 149 assessment year (a) if four years have elapsed from the end of the relevant assessment year, unless the case falls under clause (b) or clause (c); (b) if four years, but not more than si end of the relevant assessment year unless the income chargeable to tax which has escaped assessment amounts to or is likely to amount to one lakh rupees or more for that year; (c) if four years, but not more than sixteen ye the end of the relevant assessment year unless the income in relation to any asset (including financial interest in any entity) located outside India, chargeable to tax, has escaped assessment. Explanation. escaped assessment for the purposes of this subsection, the provisions 2024 (O&M) reassessment or recomputation as specified in sub section 153, every such notice referred to in this clause shall be deemed to be a valid notice. Explanation.-For the removal of doubts, it is hereby declared that nothing contained in the first proviso or the second proviso shall apply to any return which has been furnished on or after the 1st day of October, 2005 in response to a notice served under this section. (2) The Assessing Officer shall, before issuing any notice under this section, record his reasons for doing so. Time limit for notice :- 149. (1) No notice under section 148 shall be issued for the relevant assessment year- (a) if four years have elapsed from the end of the relevant assessment year, unless the case falls under clause (b) or clause (c); (b) if four years, but not more than si end of the relevant assessment year unless the income chargeable to tax which has escaped assessment amounts to or is likely to amount to one lakh rupees or more for that year; (c) if four years, but not more than sixteen ye the end of the relevant assessment year unless the income in relation to any asset (including financial interest in any entity) located outside India, chargeable to tax, has escaped assessment. Explanation.-In determining income chargeable to tax which has escaped assessment for the purposes of this subsection, the provisions -9- reassessment or recomputation as specified in sub-section (2) of section 153, every such notice referred to in this clause shall be For the removal of doubts, it is hereby declared that nothing contained in the first proviso or the second proviso shall apply to any return which has been furnished on or after the 1st day ponse to a notice served under this section. (2) The Assessing Officer shall, before issuing any notice under this section, record his reasons for doing so. . (1) No notice under section 148 shall be issued for the relevant (a) if four years have elapsed from the end of the relevant assessment year, unless the case falls under clause (b) or clause (c); (b) if four years, but not more than six years, have elapsed from the end of the relevant assessment year unless the income chargeable to tax which has escaped assessment amounts to or is likely to amount to one lakh rupees or more for that year; (c) if four years, but not more than sixteen years, have elapsed from the end of the relevant assessment year unless the income in relation to any asset (including financial interest in any entity) located outside India, chargeable to tax, has escaped assessment. In determining income chargeable to tax which has escaped assessment for the purposes of this subsection, the provisions section (2) of section 153, every such notice referred to in this clause shall be For the removal of doubts, it is hereby declared that nothing contained in the first proviso or the second proviso shall apply to any return which has been furnished on or after the 1st day (2) The Assessing Officer shall, before issuing any notice under this . (1) No notice under section 148 shall be issued for the relevant (a) if four years have elapsed from the end of the relevant assessment x years, have elapsed from the end of the relevant assessment year unless the income chargeable to tax which has escaped assessment amounts to or is likely to amount to ars, have elapsed from the end of the relevant assessment year unless the income in relation to any asset (including financial interest in any entity) located outside In determining income chargeable to tax which has escaped assessment for the purposes of this subsection, the provisions TRIPTI SAINI 2025.04.11 09:48 I attest to the accuracy and integrity of this document CWP-4112-2024 of Explanation 2 of section 147 shall apply as they apply for the purposes of that section. (2) The provisions of sub subject to the provisions of section 151. (3) If the person on whom a notice under section 148 is to be served is a person treated as the agent of a non the assessment, reassessmen pursuance of the notice is to be made on him as the agent of such non resident, the notice shall not be issued after the expiry of a period of six years from the end of the relevant assessment year. Explanation. provisions of sub 2012, shall also be applicable for any assessment year beginning on or before the 1st day of April, 2012. Sanction for issue of notice 151 Officer, after the expiry of a period of four years from the end of the relevant assessment year, unless the Principal Chief Commissioner or Chief Commissioner or Principal Commissione satisfied, on the reasons recorded by the Assessing Officer, that it is a fit case for the issue of such notice. (2) In a case other than a case falling under sub shall be issued under section 148 by an Assessin below the rank of Joint Commissioner, unless the Joint Commissioner 2024 (O&M) of Explanation 2 of section 147 shall apply as they apply for the purposes of that section. (2) The provisions of sub-section (1) as to the issue of notice shall be subject to the provisions of section 151. (3) If the person on whom a notice under section 148 is to be served is a person treated as the agent of a non the assessment, reassessment or recomputation to be made in pursuance of the notice is to be made on him as the agent of such non resident, the notice shall not be issued after the expiry of a period of six years from the end of the relevant assessment year. Explanation.-For the removal of doubts, it is hereby clarified that the provisions of sub-sections (1) and (3), as amended by the Finance Act, 2012, shall also be applicable for any assessment year beginning on or before the 1st day of April, 2012. Sanction for issue of notice :- 151. (1) No notice shall be issued under section 148 by an Assessing Officer, after the expiry of a period of four years from the end of the relevant assessment year, unless the Principal Chief Commissioner or Chief Commissioner or Principal Commissione satisfied, on the reasons recorded by the Assessing Officer, that it is a fit case for the issue of such notice. (2) In a case other than a case falling under sub shall be issued under section 148 by an Assessin below the rank of Joint Commissioner, unless the Joint Commissioner -10- of Explanation 2 of section 147 shall apply as they apply for the tion (1) as to the issue of notice shall be subject to the provisions of section 151. (3) If the person on whom a notice under section 148 is to be served is a person treated as the agent of a non-resident under section 163 and t or recomputation to be made in pursuance of the notice is to be made on him as the agent of such non resident, the notice shall not be issued after the expiry of a period of six years from the end of the relevant assessment year. moval of doubts, it is hereby clarified that the sections (1) and (3), as amended by the Finance Act, 2012, shall also be applicable for any assessment year beginning on or before the 1st day of April, 2012. . (1) No notice shall be issued under section 148 by an Assessing Officer, after the expiry of a period of four years from the end of the relevant assessment year, unless the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner is satisfied, on the reasons recorded by the Assessing Officer, that it is a fit case for the issue of such notice. (2) In a case other than a case falling under sub-section (1), no notice shall be issued under section 148 by an Assessing Officer, who is below the rank of Joint Commissioner, unless the Joint Commissioner of Explanation 2 of section 147 shall apply as they apply for the tion (1) as to the issue of notice shall be (3) If the person on whom a notice under section 148 is to be served is resident under section 163 and t or recomputation to be made in pursuance of the notice is to be made on him as the agent of such non- resident, the notice shall not be issued after the expiry of a period of moval of doubts, it is hereby clarified that the sections (1) and (3), as amended by the Finance Act, 2012, shall also be applicable for any assessment year beginning on . (1) No notice shall be issued under section 148 by an Assessing Officer, after the expiry of a period of four years from the end of the relevant assessment year, unless the Principal Chief Commissioner or r or Commissioner is satisfied, on the reasons recorded by the Assessing Officer, that it is a section (1), no notice g Officer, who is below the rank of Joint Commissioner, unless the Joint Commissioner TRIPTI SAINI 2025.04.11 09:48 I attest to the accuracy and integrity of this document CWP-4112-2024 is satisfied, on the reasons recorded by such Assessing Officer, that it is a fit case for the issue of such notice. (3) For the purposes of sub Principal Chief Commissioner or the Chief Commissioner or the Principal Commissioner or the Commissioner or the Joint Commissioner, as the case may be, being satisfied on the reasons recorded by the Assessing Officer about fitness of a case fo of notice under section 148, need not issue such notice himself.\" 3.1 In pursuance to the power vested under section 3 of the Relaxation Act, 2020, the Central Government issued following Notifications inter issuance of reassessment notices under section 148 of the Income Tax Act, 1961: Date of Notification 31.03.2020 24.06.2020 31.03.2021 27.04.2021 The Explanations to the Notifications dated 31st March, 2021 and 27th April, 2021 issued under section 3 of the Relaxation Act, 2020 also stipulated that the provisions, as they existed prior to the amendment by the Finance Act, 2021, shall apply to the re proceedings initiated thereunder. 2024 (O&M) is satisfied, on the reasons recorded by such Assessing Officer, that it is a fit case for the issue of such notice. (3) For the purposes of sub-section (1) and sub Principal Chief Commissioner or the Chief Commissioner or the Principal Commissioner or the Commissioner or the Joint Commissioner, as the case may be, being satisfied on the reasons recorded by the Assessing Officer about fitness of a case fo of notice under section 148, need not issue such notice himself.\" 3.1 In pursuance to the power vested under section 3 of the Relaxation Act, 2020, the Central Government issued following Notifications inter-alia extending the time lines presc issuance of reassessment notices under section 148 of the Income Tax Act, 1961: Date of Notification Original limitation for issuance of notice under Section 148 of the Act 31.03.2020 20.03.2020 to 24.06.2020 20.03.2020 to 31.12.2020 31.03.2021 31.03.2021 27.04.2021 30.04.2021 The Explanations to the Notifications dated 31st March, 2021 and 27th April, 2021 issued under section 3 of the Relaxation Act, 2020 also stipulated that the provisions, as they existed prior to the amendment by the Finance Act, 2021, shall apply to the re proceedings initiated thereunder. -11- is satisfied, on the reasons recorded by such Assessing Officer, that it is a fit case for the issue of such notice. section (1) and sub-section (2), the Principal Chief Commissioner or the Chief Commissioner or the Principal Commissioner or the Commissioner or the Joint Commissioner, as the case may be, being satisfied on the reasons recorded by the Assessing Officer about fitness of a case for the issue of notice under section 148, need not issue such notice himself.\" 3.1 In pursuance to the power vested under section 3 of the Relaxation Act, 2020, the Central Government issued following Notifications alia extending the time lines prescribed under section 149 for issuance of reassessment notices under section 148 of the Income Tax Original limitation for issuance of notice under Section 148 of the Act Extended Limitation 20.03.2020 to 29.06.2020 30.06.2020 20.03.2020 to 31.12.2020 31.03.2021 30.04.2021 30.06.2021 The Explanations to the Notifications dated 31st March, 2021 and 27th April, 2021 issued under section 3 of the Relaxation Act, 2020 also stipulated that the provisions, as they existed prior to the amendment by the Finance Act, 2021, shall apply to the reassessment is satisfied, on the reasons recorded by such Assessing Officer, that it ion (2), the Principal Chief Commissioner or the Chief Commissioner or the Principal Commissioner or the Commissioner or the Joint Commissioner, as the case may be, being satisfied on the reasons r the issue 3.1 In pursuance to the power vested under section 3 of the Relaxation Act, 2020, the Central Government issued following Notifications ribed under section 149 for issuance of reassessment notices under section 148 of the Income Tax The Explanations to the Notifications dated 31st March, 2021 and 27th April, 2021 issued under section 3 of the Relaxation Act, 2020 also stipulated that the provisions, as they existed prior to the assessment TRIPTI SAINI 2025.04.11 09:48 I attest to the accuracy and integrity of this document CWP-4112-2024 3.2 The Parliament introduced reformative changes to sections 147 to 151 of the Income Tax Act, 1961 governing reassessment proceedings by way of the Finance Act, 2021, which was passed on 28th March, 2021. The w.e.f. 01.04.2021, passed in the Finance Act, 2021, are as under: Income escaping assessment \"147 escaped assessment for any assessment year, the Assessing Officer may, subject to the provisions of sections 148 to 153, assess or reassess such income or recompute the loss or the deprecia allowance or any other allowance or deduction for such assessment year (hereafter in this section and in sections 148 to 153 referred to as the relevant assessment year). Explanation. recomputation un reassess the income in respect of any issue, which has escaped assessment, and such issue comes to his notice subsequently in the course of the proceedings under this section, irrespective of the fact that the provisions of section 1 Issue of notice where income has escaped assessment 148 under section 147, and subject to the provisions of section 148A, the Assessing Officer shall serve on the assessee a notice, along with a copy of the order passed, if required, under clause (d) of section 2024 (O&M) 3.2 The Parliament introduced reformative changes to sections 147 to 151 of the Income Tax Act, 1961 governing reassessment proceedings by way of the Finance Act, 2021, which was passed on 28th March, 2021. The substituted sections 147 to 149 and section 151 applicable w.e.f. 01.04.2021, passed in the Finance Act, 2021, are as under: Income escaping assessment- \"147. If any income chargeable to tax, in the case of an assessee, has escaped assessment for any assessment year, the Assessing Officer may, subject to the provisions of sections 148 to 153, assess or reassess such income or recompute the loss or the deprecia allowance or any other allowance or deduction for such assessment year (hereafter in this section and in sections 148 to 153 referred to as the relevant assessment year). Explanation.-For the purposes of assessment or reassessment or recomputation under this section, the Assessing Officer may assess or reassess the income in respect of any issue, which has escaped assessment, and such issue comes to his notice subsequently in the course of the proceedings under this section, irrespective of the fact hat the provisions of section 148A have not been complied with Issue of notice where income has escaped assessment 148. Before making the assessment, reassessment or recomputation under section 147, and subject to the provisions of section 148A, the ssessing Officer shall serve on the assessee a notice, along with a copy of the order passed, if required, under clause (d) of section -12- 3.2 The Parliament introduced reformative changes to sections 147 to 151 of the Income Tax Act, 1961 governing reassessment proceedings by way of the Finance Act, 2021, which was passed on 28th March, substituted sections 147 to 149 and section 151 applicable w.e.f. 01.04.2021, passed in the Finance Act, 2021, are as under:- . If any income chargeable to tax, in the case of an assessee, has escaped assessment for any assessment year, the Assessing Officer may, subject to the provisions of sections 148 to 153, assess or reassess such income or recompute the loss or the depreciation allowance or any other allowance or deduction for such assessment year (hereafter in this section and in sections 148 to 153 referred to For the purposes of assessment or reassessment or der this section, the Assessing Officer may assess or reassess the income in respect of any issue, which has escaped assessment, and such issue comes to his notice subsequently in the course of the proceedings under this section, irrespective of the fact 48A have not been complied with\". Issue of notice where income has escaped assessment:- . Before making the assessment, reassessment or recomputation under section 147, and subject to the provisions of section 148A, the ssessing Officer shall serve on the assessee a notice, along with a copy of the order passed, if required, under clause (d) of section 3.2 The Parliament introduced reformative changes to sections 147 to 151 of the Income Tax Act, 1961 governing reassessment proceedings by way of the Finance Act, 2021, which was passed on 28th March, substituted sections 147 to 149 and section 151 applicable . If any income chargeable to tax, in the case of an assessee, has escaped assessment for any assessment year, the Assessing Officer may, subject to the provisions of sections 148 to 153, assess or tion allowance or any other allowance or deduction for such assessment year (hereafter in this section and in sections 148 to 153 referred to For the purposes of assessment or reassessment or der this section, the Assessing Officer may assess or reassess the income in respect of any issue, which has escaped assessment, and such issue comes to his notice subsequently in the course of the proceedings under this section, irrespective of the fact . Before making the assessment, reassessment or recomputation under section 147, and subject to the provisions of section 148A, the ssessing Officer shall serve on the assessee a notice, along with a copy of the order passed, if required, under clause (d) of section TRIPTI SAINI 2025.04.11 09:48 I attest to the accuracy and integrity of this document CWP-4112-2024 148A, requiring him to furnish within such period, as may be specified in such notice, a return of his income or the inco person in respect of which he is assessable under this Act during the previous year corresponding to the relevant assessment year, in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may of this Act shall, so far as may be, apply accordingly as if such return were a return required to be furnished under section 139: Provided that no notice under this section shall be issued unless there is information wi income chargeable to tax has escaped assessment in the case of the assessee for the relevant assessment year and the Assessing Officer has obtained prior approval of the specified authority to issue such not Explanation 1. information with the Assessing Officer which suggests that the income chargeable to tax has escaped assessment means (i) any information flagged in the case of the assessee for th assessment year in accordance with the risk management strategy formulated by the Board from time to time; (ii) any final objection raised by the Comptroller and Auditor of India to the effect that the assessment in the case of the asse the relevant assessment year has not been made in accordance with the provisions of this Act. 2024 (O&M) 148A, requiring him to furnish within such period, as may be specified in such notice, a return of his income or the inco person in respect of which he is assessable under this Act during the previous year corresponding to the relevant assessment year, in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may of this Act shall, so far as may be, apply accordingly as if such return were a return required to be furnished under section 139: Provided that no notice under this section shall be issued unless there is information with the Assessing Officer which suggests that the income chargeable to tax has escaped assessment in the case of the assessee for the relevant assessment year and the Assessing Officer has obtained prior approval of the specified authority to issue such notice. Explanation 1.-For the purposes of this section and section 148A, the information with the Assessing Officer which suggests that the income chargeable to tax has escaped assessment means (i) any information flagged in the case of the assessee for th assessment year in accordance with the risk management strategy formulated by the Board from time to time; (ii) any final objection raised by the Comptroller and Auditor of India to the effect that the assessment in the case of the asse the relevant assessment year has not been made in accordance with the provisions of this Act. -13- 148A, requiring him to furnish within such period, as may be specified in such notice, a return of his income or the income of any other person in respect of which he is assessable under this Act during the previous year corresponding to the relevant assessment year, in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed; and the provisions of this Act shall, so far as may be, apply accordingly as if such return were a return required to be furnished under section 139: Provided that no notice under this section shall be issued unless there th the Assessing Officer which suggests that the income chargeable to tax has escaped assessment in the case of the assessee for the relevant assessment year and the Assessing Officer has obtained prior approval of the specified authority to issue such For the purposes of this section and section 148A, the information with the Assessing Officer which suggests that the income chargeable to tax has escaped assessment means- (i) any information flagged in the case of the assessee for the relevant assessment year in accordance with the risk management strategy formulated by the Board from time to time; (ii) any final objection raised by the Comptroller and Auditor-General of India to the effect that the assessment in the case of the assessee for the relevant assessment year has not been made in accordance with 148A, requiring him to furnish within such period, as may be specified me of any other person in respect of which he is assessable under this Act during the previous year corresponding to the relevant assessment year, in the prescribed form and verified in the prescribed manner and setting be prescribed; and the provisions of this Act shall, so far as may be, apply accordingly as if such return Provided that no notice under this section shall be issued unless there th the Assessing Officer which suggests that the income chargeable to tax has escaped assessment in the case of the assessee for the relevant assessment year and the Assessing Officer has obtained prior approval of the specified authority to issue such For the purposes of this section and section 148A, the information with the Assessing Officer which suggests that the income e relevant assessment year in accordance with the risk management strategy General ssee for the relevant assessment year has not been made in accordance with TRIPTI SAINI 2025.04.11 09:48 I attest to the accuracy and integrity of this document CWP-4112-2024 Explanation 2. (i) a search is initiated under section 132 or books of account, other documents or any assets after the 1st day of April, 2021, in the case of the assessee; or (ii) a survey is conducted under section 133A, other than under sub section (2A) or sub of A (iii) the Assessing Officer is satisfied, with the prior approval of the Principal Commissioner or Commissioner, that any money, bullion, jewellery or other valuable article or thing, seized or requisitioned und on or after the 1st day of April, 2021, belongs to the assessee; or (iv) the Assessing Officer is satisfied, with the prior approval of Principal Commissioner or Commissioner, that any books or documents, seized or requisitioned under section 132 or section 132A in case of any other person on or after the 1st day of April, 2021, pertains or pertain to, or any information contained therein, relate to, the assessee, the Assessing Off information which suggests that the income chargeable to tax has escaped assessment in the case of the assessee for the three assessment years immediately preceding the assessment year relevant to the previous year in which the account, other documents or any assets are requisitioned or survey is conducted in the case of the assessee or money, bullion, jewellery or 2024 (O&M) Explanation 2.-For the purposes of this section, where (i) a search is initiated under section 132 or books of account, other documents or any assets are requisitioned under section 132A, on or after the 1st day of April, 2021, in the case of the assessee; or (ii) a survey is conducted under section 133A, other than under sub section (2A) or sub-section (5) of that section, on or after the 1st day of April, 2021, in the case of the assessee; or (iii) the Assessing Officer is satisfied, with the prior approval of the Principal Commissioner or Commissioner, that any money, bullion, jewellery or other valuable article or thing, seized or requisitioned under section 132 or under section 132A in case of any other person on or after the 1st day of April, 2021, belongs to the assessee; or (iv) the Assessing Officer is satisfied, with the prior approval of Principal Commissioner or Commissioner, that any books or documents, seized or requisitioned under section 132 or section 132A in case of any other person on or after the 1st day of April, 2021, pertains or pertain to, or any information contained therein, relate to, the assessee, the Assessing Off information which suggests that the income chargeable to tax has escaped assessment in the case of the assessee for the three assessment years immediately preceding the assessment year relevant to the previous year in which the account, other documents or any assets are requisitioned or survey is conducted in the case of the assessee or money, bullion, jewellery or -14- purposes of this section, where- (i) a search is initiated under section 132 or books of account, other are requisitioned under section 132A, on or after the 1st day of April, 2021, in the case of the assessee; or (ii) a survey is conducted under section 133A, other than under sub section (5) of that section, on or after the 1st day pril, 2021, in the case of the assessee; or (iii) the Assessing Officer is satisfied, with the prior approval of the Principal Commissioner or Commissioner, that any money, bullion, jewellery or other valuable article or thing, seized or requisitioned er section 132 or under section 132A in case of any other person on or after the 1st day of April, 2021, belongs to the assessee; or (iv) the Assessing Officer is satisfied, with the prior approval of Principal Commissioner or Commissioner, that any books of account or documents, seized or requisitioned under section 132 or section 132A in case of any other person on or after the 1st day of April, 2021, pertains or pertain to, or any information contained therein, relate to, the assessee, the Assessing Officer shall be deemed to have information which suggests that the income chargeable to tax has escaped assessment in the case of the assessee for the three assessment years immediately preceding the assessment year relevant to the previous year in which the search is initiated or books of account, other documents or any assets are requisitioned or survey is conducted in the case of the assessee or money, bullion, jewellery or (i) a search is initiated under section 132 or books of account, other are requisitioned under section 132A, on or (ii) a survey is conducted under section 133A, other than under sub- section (5) of that section, on or after the 1st day (iii) the Assessing Officer is satisfied, with the prior approval of the Principal Commissioner or Commissioner, that any money, bullion, jewellery or other valuable article or thing, seized or requisitioned er section 132 or under section 132A in case of any other person (iv) the Assessing Officer is satisfied, with the prior approval of of account or documents, seized or requisitioned under section 132 or section 132A in case of any other person on or after the 1st day of April, 2021, pertains or pertain to, or any information contained therein, icer shall be deemed to have information which suggests that the income chargeable to tax has escaped assessment in the case of the assessee for the three assessment years immediately preceding the assessment year relevant search is initiated or books of account, other documents or any assets are requisitioned or survey is conducted in the case of the assessee or money, bullion, jewellery or TRIPTI SAINI 2025.04.11 09:48 I attest to the accuracy and integrity of this document CWP-4112-2024 other valuable article or thing or books of account or documents are seized or requ Explanation 3. means the specified authority referred to in section 151.\" Conducting inquiry, providing opportunity before issue of notice under section 148 \"148A section 148 (a) conduct any enquiry, if required, with the prior approval of specified authority, with respect to the information which suggests that the income chargeable to tax has esc (b) provide an opportunity of being heard to the assessee, with the prior approval of specified authority, by serving upon him a notice to show cause within such time, as may be specified in the notice, being not less than seven days and date on which such notice is issued, or such time, as may be extended by him on the basis of an application in this behalf, as to why a notice under section 148 should not be issued on the basis of information which s in his case for the relevant assessment year and results of enquiry conducted, if any, as per clause (a); (c) consider the reply of assessee furnished, if any, in response to the show 2024 (O&M) other valuable article or thing or books of account or documents are seized or requisitioned in case of any other person. Explanation 3.-For the purposes of this section, specified authority means the specified authority referred to in section 151.\" Conducting inquiry, providing opportunity before issue of notice under section 148 – \"148A. The Assessing Officer shall, before issuing any notice under section 148- (a) conduct any enquiry, if required, with the prior approval of specified authority, with respect to the information which suggests that the income chargeable to tax has esc (b) provide an opportunity of being heard to the assessee, with the prior approval of specified authority, by serving upon him a notice to show cause within such time, as may be specified in the notice, being not less than seven days and but not exceeding thirty days from the date on which such notice is issued, or such time, as may be extended by him on the basis of an application in this behalf, as to why a notice under section 148 should not be issued on the basis of information which suggests that income chargeable to tax has escaped assessment in his case for the relevant assessment year and results of enquiry conducted, if any, as per clause (a); (c) consider the reply of assessee furnished, if any, in response to the show-cause notice referred to in clause (b); -15- other valuable article or thing or books of account or documents are isitioned in case of any other person. For the purposes of this section, specified authority means the specified authority referred to in section 151.\" Conducting inquiry, providing opportunity before issue of notice . The Assessing Officer shall, before issuing any notice under (a) conduct any enquiry, if required, with the prior approval of specified authority, with respect to the information which suggests that the income chargeable to tax has escaped assessment; (b) provide an opportunity of being heard to the assessee, with the prior approval of specified authority, by serving upon him a notice to show cause within such time, as may be specified in the notice, being but not exceeding thirty days from the date on which such notice is issued, or such time, as may be extended by him on the basis of an application in this behalf, as to why a notice under section 148 should not be issued on the basis of information uggests that income chargeable to tax has escaped assessment in his case for the relevant assessment year and results of enquiry conducted, if any, as per clause (a); (c) consider the reply of assessee furnished, if any, in response to the ce referred to in clause (b); other valuable article or thing or books of account or documents are For the purposes of this section, specified authority Conducting inquiry, providing opportunity before issue of notice . The Assessing Officer shall, before issuing any notice under (a) conduct any enquiry, if required, with the prior approval of specified authority, with respect to the information which suggests (b) provide an opportunity of being heard to the assessee, with the prior approval of specified authority, by serving upon him a notice to show cause within such time, as may be specified in the notice, being but not exceeding thirty days from the date on which such notice is issued, or such time, as may be extended by him on the basis of an application in this behalf, as to why a notice under section 148 should not be issued on the basis of information uggests that income chargeable to tax has escaped assessment in his case for the relevant assessment year and results of enquiry (c) consider the reply of assessee furnished, if any, in response to the TRIPTI SAINI 2025.04.11 09:48 I attest to the accuracy and integrity of this document CWP-4112-2024 (d) decide, on the basis of material available on record including reply of the assessee, whether or not it is a fit case to issue a notice under section 148, by passing an order, with the prior approval of specified authorit which the reply referred to in clause (c) is received by him, or where no such reply is furnished, within one month from the end of the month in which time or extended time allowed to furnish a reply as per Provided that the provisions of this section shall not apply in a case where (a) a search is initiated under section 132 or books of account, other documents or any assets are requisitioned under section 132A in the case of the asses (b) the Assessing Officer is satisfied, with the prior approval of the Principal Commissioner or Commissioner that any money, bullion, jewellery or other valuable article or thing, seized in a search under section 132 or requisitioned under section 132A, i other person on or after the 1st day of April, 2021, belongs to the assessee; or (c) the Assessing Officer is satisfied, with the prior approval of the Principal Commissioner or Commissioner that any books of account or documents, seized under section 132A, in case of any other person on or after the 1st day 2024 (O&M) (d) decide, on the basis of material available on record including reply of the assessee, whether or not it is a fit case to issue a notice under section 148, by passing an order, with the prior approval of specified authority, within one month from the end of the month in which the reply referred to in clause (c) is received by him, or where no such reply is furnished, within one month from the end of the month in which time or extended time allowed to furnish a reply as per clause (b) expires: Provided that the provisions of this section shall not apply in a case where- (a) a search is initiated under section 132 or books of account, other documents or any assets are requisitioned under section 132A in the case of the assessee on or after the 1st day of April, 2021; or (b) the Assessing Officer is satisfied, with the prior approval of the Principal Commissioner or Commissioner that any money, bullion, jewellery or other valuable article or thing, seized in a search under section 132 or requisitioned under section 132A, i other person on or after the 1st day of April, 2021, belongs to the assessee; or (c) the Assessing Officer is satisfied, with the prior approval of the Principal Commissioner or Commissioner that any books of account or documents, seized in a search under section 132 or requisitioned under section 132A, in case of any other person on or after the 1st day -16- (d) decide, on the basis of material available on record including reply of the assessee, whether or not it is a fit case to issue a notice under section 148, by passing an order, with the prior approval of y, within one month from the end of the month in which the reply referred to in clause (c) is received by him, or where no such reply is furnished, within one month from the end of the month in which time or extended time allowed to furnish a reply as Provided that the provisions of this section shall not apply in a case (a) a search is initiated under section 132 or books of account, other documents or any assets are requisitioned under section 132A in the see on or after the 1st day of April, 2021; or (b) the Assessing Officer is satisfied, with the prior approval of the Principal Commissioner or Commissioner that any money, bullion, jewellery or other valuable article or thing, seized in a search under section 132 or requisitioned under section 132A, in the case of any other person on or after the 1st day of April, 2021, belongs to the (c) the Assessing Officer is satisfied, with the prior approval of the Principal Commissioner or Commissioner that any books of account in a search under section 132 or requisitioned under section 132A, in case of any other person on or after the 1st day (d) decide, on the basis of material available on record including reply of the assessee, whether or not it is a fit case to issue a notice under section 148, by passing an order, with the prior approval of y, within one month from the end of the month in which the reply referred to in clause (c) is received by him, or where no such reply is furnished, within one month from the end of the month in which time or extended time allowed to furnish a reply as Provided that the provisions of this section shall not apply in a case (a) a search is initiated under section 132 or books of account, other documents or any assets are requisitioned under section 132A in the (b) the Assessing Officer is satisfied, with the prior approval of the Principal Commissioner or Commissioner that any money, bullion, jewellery or other valuable article or thing, seized in a search under n the case of any other person on or after the 1st day of April, 2021, belongs to the (c) the Assessing Officer is satisfied, with the prior approval of the Principal Commissioner or Commissioner that any books of account in a search under section 132 or requisitioned under section 132A, in case of any other person on or after the 1st day TRIPTI SAINI 2025.04.11 09:48 I attest to the accuracy and integrity of this document CWP-4112-2024 of April, 2021, pertains or pertain to, or any information contained therein, relate to, the assessee. Explanation. means the specified authority referred to in section 151.\" Time limit for notice \"149 assessment year (a) if three years have elapsed from the end of year, unless the case falls under clause (b); (b) if three years, but not more than ten years, have elapsed from the end of the relevant assessment year unless the Assessing Officer has in his possession books of account or other which reveal that the income chargeable to tax, represented in the form of asset, which has escaped assessment amounts to or is likely to amount to fifty lakh rupees or more for that year: Provided that no notice under section 148 in a case for the relevant assessment year beginning on or before 1st day of April, 2021, if such notice could not have been issued at that time on account of being beyond the time limit specified under the provisions of clause immediately before the commencement of the Finance Act, 2021: Provided further that the provisions of this sub in a case, where a notice under section 153A, or section 153C read 2024 (O&M) of April, 2021, pertains or pertain to, or any information contained therein, relate to, the assessee. Explanation.-For the purposes of means the specified authority referred to in section 151.\" Time limit for notice – \"149. (1) No notice under section 148 shall be issued for the relevant assessment year- (a) if three years have elapsed from the end of year, unless the case falls under clause (b); (b) if three years, but not more than ten years, have elapsed from the end of the relevant assessment year unless the Assessing Officer has in his possession books of account or other which reveal that the income chargeable to tax, represented in the form of asset, which has escaped assessment amounts to or is likely to amount to fifty lakh rupees or more for that year: Provided that no notice under section 148 in a case for the relevant assessment year beginning on or before 1st day of April, 2021, if such notice could not have been issued at that time on account of being beyond the time limit specified under the provisions of clause (b) of sub-section (1) of this section, as they stood immediately before the commencement of the Finance Act, 2021: Provided further that the provisions of this sub in a case, where a notice under section 153A, or section 153C read -17- of April, 2021, pertains or pertain to, or any information contained For the purposes of this section, specified authority means the specified authority referred to in section 151.\" . (1) No notice under section 148 shall be issued for the relevant (a) if three years have elapsed from the end of the relevant assessment year, unless the case falls under clause (b); (b) if three years, but not more than ten years, have elapsed from the end of the relevant assessment year unless the Assessing Officer has in his possession books of account or other documents or evidence which reveal that the income chargeable to tax, represented in the form of asset, which has escaped assessment amounts to or is likely to amount to fifty lakh rupees or more for that year: Provided that no notice under section 148 shall be issued at any time in a case for the relevant assessment year beginning on or before 1st day of April, 2021, if such notice could not have been issued at that time on account of being beyond the time limit specified under the section (1) of this section, as they stood immediately before the commencement of the Finance Act, 2021: Provided further that the provisions of this sub-section shall not apply in a case, where a notice under section 153A, or section 153C read of April, 2021, pertains or pertain to, or any information contained this section, specified authority . (1) No notice under section 148 shall be issued for the relevant the relevant assessment (b) if three years, but not more than ten years, have elapsed from the end of the relevant assessment year unless the Assessing Officer has documents or evidence which reveal that the income chargeable to tax, represented in the form of asset, which has escaped assessment amounts to or is likely to shall be issued at any time in a case for the relevant assessment year beginning on or before 1st day of April, 2021, if such notice could not have been issued at that time on account of being beyond the time limit specified under the section (1) of this section, as they stood section shall not apply in a case, where a notice under section 153A, or section 153C read TRIPTI SAINI 2025.04.11 09:48 I attest to the accuracy and integrity of this document CWP-4112-2024 with section 153A, is required to be issued in relation to a search initiated under section 132 or books of account, other documents or any assets requisitioned under section 132A, on or before the 31st day of March, 2021: Provided also that for the pur limitation as per this section, the time or extended time allowed to the assessee, as per show 148A or the period during which the proceeding under section 148A is stayed by a Provided also that where immediately after the exclusion of the period referred to in the immediately preceding proviso, the period of limitation available to the Assessing Officer for passing an ord under clause (d) of section 148A is less than seven days, such remaining period shall be extended to seven days and the period of limitation under this sub accordingly. Explanation. shall include immovable property, being land or building or both, shares and securities, loans and advances, deposits in bank account. (2) The provisions of sub subject to the provi Sanction for issue of notice 2024 (O&M) with section 153A, is required to be issued in relation to a search initiated under section 132 or books of account, other documents or any assets requisitioned under section 132A, on or before the 31st day of March, 2021: Provided also that for the purposes 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: Provided also that where immediately after the exclusion of the period referred to in the immediately preceding proviso, the period of limitation available to the Assessing Officer for passing an ord under clause (d) of section 148A is less than seven days, such remaining period shall be extended to seven days and the period of limitation under this sub-section shall be deemed to be extended accordingly. Explanation.-For the purposes of clause (b) shall include immovable property, being land or building or both, shares and securities, loans and advances, deposits in bank account. (2) The provisions of sub-section (1) as to the issue of notice shall be subject to the provisions of section 151.' Sanction for issue of notice- -18- with section 153A, is required to be issued in relation to a search initiated under section 132 or books of account, other documents or any assets requisitioned under section 132A, on or before the 31st day poses of computing the period of limitation as per this section, the time or extended time allowed to the cause notice issued under clause (b) of section 148A or the period during which the proceeding under section 148A n order or injunction of any court, shall be excluded: Provided also that where immediately after the exclusion of the period referred to in the immediately preceding proviso, the period of limitation available to the Assessing Officer for passing an ord under clause (d) of section 148A is less than seven days, such remaining period shall be extended to seven days and the period of section shall be deemed to be extended For the purposes of clause (b) of this subsection, \"asset\" shall include immovable property, being land or building or both, shares and securities, loans and advances, deposits in bank account. section (1) as to the issue of notice shall be sions of section 151.' with section 153A, is required to be issued in relation to a search initiated under section 132 or books of account, other documents or any assets requisitioned under section 132A, on or before the 31st day poses of computing the period of limitation as per this section, the time or extended time allowed to the cause notice issued under clause (b) of section 148A or the period during which the proceeding under section 148A n order or injunction of any court, shall be excluded: Provided also that where immediately after the exclusion of the period referred to in the immediately preceding proviso, the period of limitation available to the Assessing Officer for passing an order under clause (d) of section 148A is less than seven days, such remaining period shall be extended to seven days and the period of section shall be deemed to be extended of this subsection, \"asset\" shall include immovable property, being land or building or both, shares and securities, loans and advances, deposits in bank account. section (1) as to the issue of notice shall be TRIPTI SAINI 2025.04.11 09:48 I attest to the accuracy and integrity of this document CWP-4112-2024 \"151 148A shall be (i) Principal Commissioner or Principal Director or Commissioner or Director, if three years or less than three yea 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 years have elapsed from the end of the relevant assessment year. 9. Despite the substituted Sections 147 to 151 of the Income Tax Act, 1961, by the Finance Act, 2021 which came into force on 01.04.2021 many reassessment notices under Section 1 to the assessees after coming into force of Finance Act, 2021 i.e. after 01.04.2021, which were assailed before different High Courts on different grounds. Different High Courts quashed the reassessment notices u Tax Act, 1961. Union of India challenged the judgments passed by different High Courts setting aside reassessment notices under Section 148 of the unamended Income Tax Act, which were issued after 01.04.2021 i.e. after comin Finance Act, 2021 before the Hon’ble Supreme Court of India in and Others Vs. Ashish Aggarwal Court partly allowed the appeals filed by the Union of India. Relevant portion of the judgment of Hon’ble Supreme Court in Aggarwal [2022] SCC Online SC 543 2024 (O&M) \"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 yea 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 years have elapsed from the end of the relevant assessment year. Despite the substituted Sections 147 to 151 of the Income Tax Act, 1961, by the Finance Act, 2021 which came into force on 01.04.2021 many reassessment notices under Section 148 of the Income Tax Act, 1961 were issued to the assessees after coming into force of Finance Act, 2021 i.e. after 01.04.2021, which were assailed before different High Courts on different grounds. Different High Courts quashed the reassessment notices u Tax Act, 1961. Union of India challenged the judgments passed by different High Courts setting aside reassessment notices under Section 148 of the unamended Income Tax Act, which were issued after 01.04.2021 i.e. after comin Finance Act, 2021 before the Hon’ble Supreme Court of India in and Others Vs. Ashish Aggarwal [2022] SCC Online SC 543 Court partly allowed the appeals filed by the Union of India. Relevant portion of the judgment of Hon’ble Supreme Court in Union of India and Others Vs. Ashish [2022] SCC Online SC 543 is reproduced as under: -19- . Specified authority for the purposes of section 148 and section (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.\" Despite the substituted Sections 147 to 151 of the Income Tax Act, 1961, by the Finance Act, 2021 which came into force on 01.04.2021 many 48 of the Income Tax Act, 1961 were issued to the assessees after coming into force of Finance Act, 2021 i.e. after 01.04.2021, which were assailed before different High Courts on different grounds. Different High Courts quashed the reassessment notices under Section 148 of the Income Tax Act, 1961. Union of India challenged the judgments passed by different High Courts setting aside reassessment notices under Section 148 of the unamended Income Tax Act, which were issued after 01.04.2021 i.e. after coming into force of Finance Act, 2021 before the Hon’ble Supreme Court of India in Union of India [2022] SCC Online SC 543 . Hon’ble Supreme Court partly allowed the appeals filed by the Union of India. Relevant portion of Union of India and Others Vs. Ashish is reproduced as under:- . Specified authority for the purposes of section 148 and section (i) Principal Commissioner or Principal Director or Commissioner or rs have elapsed from the (ii) Principal Chief Commissioner or Principal Director General or where there is no Principal Chief Commissioner or Principal Director than three Despite the substituted Sections 147 to 151 of the Income Tax Act, 1961, by the Finance Act, 2021 which came into force on 01.04.2021 many 48 of the Income Tax Act, 1961 were issued to the assessees after coming into force of Finance Act, 2021 i.e. after 01.04.2021, which were assailed before different High Courts on different grounds. Different nder Section 148 of the Income Tax Act, 1961. Union of India challenged the judgments passed by different High Courts setting aside reassessment notices under Section 148 of the unamended g into force of Union of India . Hon’ble Supreme Court partly allowed the appeals filed by the Union of India. Relevant portion of Union of India and Others Vs. Ashish TRIPTI SAINI 2025.04.11 09:48 I attest to the accuracy and integrity of this document CWP-4112-2024 “5. on behalf of the Revenue and Shri C.A. Sundaram and Shri S. Ganesh, learned Senior Advocates and other learned counsel appearing on behalf of the respective assessee. 6. It cannot be disputed that by substitution of sections 147 to 151 of the Income Tax Act (IT Act) by the Finance Act, 2021, radical and reformative changes are made governing the procedure for reassessment proceedings. Amended sections 147 to 149 and sect 151 of the IT Act prescribe the procedure governing initiation of reassessment proceedings. However, for several reasons, the same gave rise to numerous litigations and the reopening were challenged inter alia, on the grounds such as (1) no valid \"reas no tangible/reliable material/information in possession of the assessing officer leading to formation of belief that income has escaped assessment, (3) no enquiry being conducted by the assessing officer prior to the issuance of notice; change of opinion of the assessing officer and (4) lastly the mandatory procedure laid down by this Court in the case of (India) Ltd. v. Income Tax Officer and ors; (2003) 1 SCC 72 not been followed. 6.1 a maximum period up to six years and in some cases beyond even six years leading to uncertainty for a considerable time. Therefore, 2024 (O&M) . We have heard Shri N. Venkataraman, learned ASG appearing on behalf of the Revenue and Shri C.A. Sundaram and Shri S. Ganesh, learned Senior Advocates and other learned counsel appearing on behalf of the respective assessee. . It cannot be disputed that by substitution of sections 147 to 151 of the Income Tax Act (IT Act) by the Finance Act, 2021, radical and reformative changes are made governing the procedure for reassessment proceedings. Amended sections 147 to 149 and sect 151 of the IT Act prescribe the procedure governing initiation of reassessment proceedings. However, for several reasons, the same gave rise to numerous litigations and the reopening were challenged inter alia, on the grounds such as (1) no valid \"reas no tangible/reliable material/information in possession of the assessing officer leading to formation of belief that income has escaped assessment, (3) no enquiry being conducted by the assessing officer prior to the issuance of notice; change of opinion of the assessing officer and (4) lastly the mandatory procedure laid down by this Court in the case of (India) Ltd. v. Income Tax Officer and ors; (2003) 1 SCC 72 not been followed. 6.1 Further pre-Finance Act, 2021, the reopening was permissible for a maximum period up to six years and in some cases beyond even six years leading to uncertainty for a considerable time. Therefore, -20- rd Shri N. Venkataraman, learned ASG appearing on behalf of the Revenue and Shri C.A. Sundaram and Shri S. Ganesh, learned Senior Advocates and other learned counsel appearing on . It cannot be disputed that by substitution of sections 147 to 151 of the Income Tax Act (IT Act) by the Finance Act, 2021, radical and reformative changes are made governing the procedure for reassessment proceedings. Amended sections 147 to 149 and sect 151 of the IT Act prescribe the procedure governing initiation of reassessment proceedings. However, for several reasons, the same gave rise to numerous litigations and the reopening were challenged inter alia, on the grounds such as (1) no valid \"reason to believe\" (2) no tangible/reliable material/information in possession of the assessing officer leading to formation of belief that income has escaped assessment, (3) no enquiry being conducted by the assessing officer prior to the issuance of notice; and reopening is based on change of opinion of the assessing officer and (4) lastly the mandatory procedure laid down by this Court in the case of GKN Driveshafts (India) Ltd. v. Income Tax Officer and ors; (2003) 1 SCC 72, has Finance Act, 2021, the reopening was permissible for a maximum period up to six years and in some cases beyond even six years leading to uncertainty for a considerable time. Therefore, rd Shri N. Venkataraman, learned ASG appearing on behalf of the Revenue and Shri C.A. Sundaram and Shri S. Ganesh, learned Senior Advocates and other learned counsel appearing on . It cannot be disputed that by substitution of sections 147 to 151 of the Income Tax Act (IT Act) by the Finance Act, 2021, radical and reformative changes are made governing the procedure for reassessment proceedings. Amended sections 147 to 149 and section 151 of the IT Act prescribe the procedure governing initiation of reassessment proceedings. However, for several reasons, the same gave rise to numerous litigations and the reopening were challenged on to believe\" (2) no tangible/reliable material/information in possession of the assessing officer leading to formation of belief that income has escaped assessment, (3) no enquiry being conducted by the assessing and reopening is based on change of opinion of the assessing officer and (4) lastly the mandatory GKN Driveshafts , has Finance Act, 2021, the reopening was permissible for a maximum period up to six years and in some cases beyond even six years leading to uncertainty for a considerable time. Therefore, TRIPTI SAINI 2025.04.11 09:48 I attest to the accuracy and integrity of this document CWP-4112-2024 Parliament thought it fit to amend the Income Tax Act to simpl tax administration, ease compliances and reduce litigation. Therefore, with a view to achieve the said object, by the Finance Act, 2021, sections 147 to 149 and section 151 have been substituted. 6.2 2021, no notice under section 148 of the IT Act can be issued without following the procedure prescribed under section 148A of the IT Act. Along with the notice under section 148 of the IT Act, the assessing officer (AO) is required to s of the IT Act. section 148A of the IT Act is a new provision which is in the nature of a condition precedent. Introduction of section 148A of the IT Act can thus be said to be a game changer with an aim to achieve t compliance and reduce litigation. 6.3 assessment, the procedure of giving the reasons for reopening and an opportunity to the assessee a required to be followed as per the judgment of this Court in the case of GKN Driveshafts (India) Ltd. (supra). 6.4 streamlined and simplified. It provides under section 148, the assessing officer shall (i) conduct any enquiry, if required, with the approval of specified authority, with respect to 2024 (O&M) Parliament thought it fit to amend the Income Tax Act to simpl tax administration, ease compliances and reduce litigation. Therefore, with a view to achieve the said object, by the Finance Act, 2021, sections 147 to 149 and section 151 have been substituted. 6.2 Under the substituted provisions of the IT Act 2021, no notice under section 148 of the IT Act can be issued without following the procedure prescribed under section 148A of the IT Act. Along with the notice under section 148 of the IT Act, the assessing officer (AO) is required to serve the order passed under section 148A of the IT Act. section 148A of the IT Act is a new provision which is in the nature of a condition precedent. Introduction of section 148A of the IT Act can thus be said to be a game changer with an aim to achieve the ultimate object of simplifying the tax administration, ease compliance and reduce litigation. 6.3 But prior to pre-Finance Act, 2021, while reopening an assessment, the procedure of giving the reasons for reopening and an opportunity to the assessee and the decision of the objectives were required to be followed as per the judgment of this Court in the case of GKN Driveshafts (India) Ltd. (supra). 6.4 However, by way of section 148A, the procedure has now been streamlined and simplified. It provides under section 148, the assessing officer shall (i) conduct any enquiry, if required, with the approval of specified authority, with respect to -21- Parliament thought it fit to amend the Income Tax Act to simplify the tax administration, ease compliances and reduce litigation. Therefore, with a view to achieve the said object, by the Finance Act, 2021, sections 147 to 149 and section 151 have been substituted. Under the substituted provisions of the IT Act vide Finance Act, 2021, no notice under section 148 of the IT Act can be issued without following the procedure prescribed under section 148A of the IT Act. Along with the notice under section 148 of the IT Act, the assessing erve the order passed under section 148A of the IT Act. section 148A of the IT Act is a new provision which is in the nature of a condition precedent. Introduction of section 148A of the IT Act can thus be said to be a game changer with an aim to he ultimate object of simplifying the tax administration, ease Finance Act, 2021, while reopening an assessment, the procedure of giving the reasons for reopening and an nd the decision of the objectives were required to be followed as per the judgment of this Court in the case of GKN Driveshafts (India) Ltd. (supra). However, by way of section 148A, the procedure has now been streamlined and simplified. It provides that before issuing any notice under section 148, the assessing officer shall (i) conduct any enquiry, if required, with the approval of specified authority, with respect to ify the tax administration, ease compliances and reduce litigation. Therefore, with a view to achieve the said object, by the Finance Act, 2021, vide Finance Act, 2021, no notice under section 148 of the IT Act can be issued without following the procedure prescribed under section 148A of the IT Act. Along with the notice under section 148 of the IT Act, the assessing erve the order passed under section 148A of the IT Act. section 148A of the IT Act is a new provision which is in the nature of a condition precedent. Introduction of section 148A of the IT Act can thus be said to be a game changer with an aim to he ultimate object of simplifying the tax administration, ease Finance Act, 2021, while reopening an assessment, the procedure of giving the reasons for reopening and an nd the decision of the objectives were required to be followed as per the judgment of this Court in the case However, by way of section 148A, the procedure has now been that before issuing any notice under section 148, the assessing officer shall (i) conduct any enquiry, if required, with the approval of specified authority, with respect to TRIPTI SAINI 2025.04.11 09:48 I attest to the accuracy and integrity of this document CWP-4112-2024 the information which suggests that the income chargeable to tax has escaped asses assessee, with the prior approval of specified authority; (iii) consider the reply of the assessee furnished, if any, in response to the show cause notice referred to in clause (b); and (iv) decide, material available on record including reply of the assessee, as to whether or not it is a fit case to issue a notice under section 148 of the IT Act and (v) the AO is required to pass a specific order within the time stipulated. 6.5 148 of the IT Act is issued. At every stage, the prior approval of the specified authority is required, even for conducting the section 148A(a). Only in a case where, the assessing officer is of the opinion that before any notice is issued under section 148A(b) and an opportunity is to be given to the assessee, there is a requirement of conducting any enquiry, the as any enquiry. Thus if the assessing officer is of the opinion that any enquiry is required, the assessing officer can do so, however, with the prior approval of the specified authority, with respect to the information w escaped assessment. 6.6 for issuance of notice under section 148 of the IT Act. The substituted 2024 (O&M) the information which suggests that the income chargeable to tax has escaped assessment; (ii) provide an opportunity of being heard to the assessee, with the prior approval of specified authority; (iii) consider the reply of the assessee furnished, if any, in response to the show cause notice referred to in clause (b); and (iv) decide, material available on record including reply of the assessee, as to whether or not it is a fit case to issue a notice under section 148 of the IT Act and (v) the AO is required to pass a specific order within the time stipulated. 6.5 Therefore, all safeguards are provided before notice under section 148 of the IT Act is issued. At every stage, the prior approval of the specified authority is required, even for conducting the section 148A(a). Only in a case where, the assessing officer is of the opinion that before any notice is issued under section 148A(b) and an opportunity is to be given to the assessee, there is a requirement of conducting any enquiry, the assessing officer may do so and conduct any enquiry. Thus if the assessing officer is of the opinion that any enquiry is required, the assessing officer can do so, however, with the prior approval of the specified authority, with respect to the information which suggests that the income chargeable to tax has escaped assessment. 6.6 Substituted section 149 is the provision governing the time limit for issuance of notice under section 148 of the IT Act. The substituted -22- the information which suggests that the income chargeable to tax has sment; (ii) provide an opportunity of being heard to the assessee, with the prior approval of specified authority; (iii) consider the reply of the assessee furnished, if any, in response to the show cause notice referred to in clause (b); and (iv) decide, on the basis of material available on record including reply of the assessee, as to whether or not it is a fit case to issue a notice under section 148 of the IT Act and (v) the AO is required to pass a specific order within the efore, all safeguards are provided before notice under section 148 of the IT Act is issued. At every stage, the prior approval of the specified authority is required, even for conducting the enquiry as per section 148A(a). Only in a case where, the assessing officer is of the opinion that before any notice is issued under section 148A(b) and an opportunity is to be given to the assessee, there is a requirement of sessing officer may do so and conduct any enquiry. Thus if the assessing officer is of the opinion that any enquiry is required, the assessing officer can do so, however, with the prior approval of the specified authority, with respect to the hich suggests that the income chargeable to tax has Substituted section 149 is the provision governing the time limit for issuance of notice under section 148 of the IT Act. The substituted the information which suggests that the income chargeable to tax has sment; (ii) provide an opportunity of being heard to the assessee, with the prior approval of specified authority; (iii) consider the reply of the assessee furnished, if any, in response to the show- on the basis of material available on record including reply of the assessee, as to whether or not it is a fit case to issue a notice under section 148 of the IT Act and (v) the AO is required to pass a specific order within the efore, all safeguards are provided before notice under section 148 of the IT Act is issued. At every stage, the prior approval of the enquiry as per section 148A(a). Only in a case where, the assessing officer is of the opinion that before any notice is issued under section 148A(b) and an opportunity is to be given to the assessee, there is a requirement of sessing officer may do so and conduct any enquiry. Thus if the assessing officer is of the opinion that any enquiry is required, the assessing officer can do so, however, with the prior approval of the specified authority, with respect to the hich suggests that the income chargeable to tax has Substituted section 149 is the provision governing the time limit for issuance of notice under section 148 of the IT Act. The substituted TRIPTI SAINI 2025.04.11 09:48 I attest to the accuracy and integrity of this document CWP-4112-2024 section 149 of the IT Act has reduced th issuance of such a notice to three years and only in exceptional cases ten years. It also provides further additional safeguards which were absent under the earlier regime pre 7. being remedial and benevolent in nature and substituted with a specific aim and object to protect the rights and interest of the assessee as well as and the same being in public interest, the respective High Courts have r provisions shall be made available even in respect of the proceedings relating to past assessment years, provided section 148 notice has been issued on or after 1st April, 2021. We are in complete agreement with the view 8. Courts would result in no reassessment proceedings at all, even if the same are permissible under the Finance Act, 2021 and as per substitute made remediless and the object and purpose of reassessment proceedings cannot be frustrated. It is true that due to a bonafide mistake and in view of subsequent extension of time vide various notif 148 after the amendment was enforced w.e.f. 01.04.2021, under the unamended section 148. In our view the same ought not to have been 2024 (O&M) section 149 of the IT Act has reduced th issuance of such a notice to three years and only in exceptional cases ten years. It also provides further additional safeguards which were absent under the earlier regime pre Thus, the new provisions substituted by the Finance Act, 2021 being remedial and benevolent in nature and substituted with a specific aim and object to protect the rights and interest of the assessee as well as and the same being in public interest, the respective High Courts have rightly held that the benefit of new provisions shall be made available even in respect of the proceedings relating to past assessment years, provided section 148 notice has been issued on or after 1st April, 2021. We are in complete agreement with the view taken by the various High Courts in holding so. However, at the same time, the judgments of the several High Courts would result in no reassessment proceedings at all, even if the same are permissible under the Finance Act, 2021 and as per substituted sections 147 to 151 of the IT Act. The Revenue cannot be made remediless and the object and purpose of reassessment proceedings cannot be frustrated. It is true that due to a bonafide mistake and in view of subsequent extension of time vide various notifications, the Revenue issued the impugned notices under section 148 after the amendment was enforced w.e.f. 01.04.2021, under the unamended section 148. In our view the same ought not to have been -23- section 149 of the IT Act has reduced the permissible time limit for issuance of such a notice to three years and only in exceptional cases ten years. It also provides further additional safeguards which were absent under the earlier regime pre-Finance Act, 2021. bstituted by the Finance Act, 2021 being remedial and benevolent in nature and substituted with a specific aim and object to protect the rights and interest of the assessee as well as and the same being in public interest, the ightly held that the benefit of new provisions shall be made available even in respect of the proceedings relating to past assessment years, provided section 148 notice has been issued on or after 1st April, 2021. We are in complete agreement taken by the various High Courts in holding so. However, at the same time, the judgments of the several High Courts would result in no reassessment proceedings at all, even if the same are permissible under the Finance Act, 2021 and as per d sections 147 to 151 of the IT Act. The Revenue cannot be made remediless and the object and purpose of reassessment proceedings cannot be frustrated. It is true that due to a bonafide mistake and in view of subsequent extension of time vide various ications, the Revenue issued the impugned notices under section 148 after the amendment was enforced w.e.f. 01.04.2021, under the unamended section 148. In our view the same ought not to have been e permissible time limit for issuance of such a notice to three years and only in exceptional cases ten years. It also provides further additional safeguards which were bstituted by the Finance Act, 2021 being remedial and benevolent in nature and substituted with a specific aim and object to protect the rights and interest of the assessee as well as and the same being in public interest, the ightly held that the benefit of new provisions shall be made available even in respect of the proceedings relating to past assessment years, provided section 148 notice has been issued on or after 1st April, 2021. We are in complete agreement However, at the same time, the judgments of the several High Courts would result in no reassessment proceedings at all, even if the same are permissible under the Finance Act, 2021 and as per d sections 147 to 151 of the IT Act. The Revenue cannot be made remediless and the object and purpose of reassessment proceedings cannot be frustrated. It is true that due to a bonafide mistake and in view of subsequent extension of time vide various ications, the Revenue issued the impugned notices under section 148 after the amendment was enforced w.e.f. 01.04.2021, under the unamended section 148. In our view the same ought not to have been TRIPTI SAINI 2025.04.11 09:48 I attest to the accuracy and integrity of this document CWP-4112-2024 issued under the unamended Act and ought to have been issue the substituted provisions of sections 147 to 151 of the IT Act as per the Finance Act, 2021. There appears to be genuine nonapplication of the amendments as the officers of the Revenue may have been under a bonafide belief that the amendments may Therefore, we are of the opinion that some leeway must be shown in that regard which the High Courts could have done so. Therefore, instead of quashing and setting aside the reassessment notices issued under the unamended provis have passed an order construing the notices issued under unamended Act/unamended provision of the IT Act as those deemed to have been issued under section 148A of the IT Act as per the new provision section 148A and proceed further with the reassessment proceedings as per the substituted provisions of sections 147 to 151 of the IT Act as per the Finance Act, 2021, subject to compliance of all the procedural requirements and assessee under the substituted provisions of sections 147 to 151 of the IT Act and which may be available under the Finance Act, 2021 and in law. Therefore, we propose to modify the judgments and orders passed by 2024 (O&M) issued under the unamended Act and ought to have been issue the substituted provisions of sections 147 to 151 of the IT Act as per the Finance Act, 2021. There appears to be genuine nonapplication of the amendments as the officers of the Revenue may have been under a bonafide belief that the amendments may Therefore, we are of the opinion that some leeway must be shown in that regard which the High Courts could have done so. Therefore, instead of quashing and setting aside the reassessment notices issued under the unamended provision of IT Act, the High Courts ought to have passed an order construing the notices issued under unamended Act/unamended provision of the IT Act as those deemed to have been issued under section 148A of the IT Act as per the new provision section 148A and the Revenue ought to have been permitted to proceed further with the reassessment proceedings as per the substituted provisions of sections 147 to 151 of the IT Act as per the Finance Act, 2021, subject to compliance of all the procedural requirements and the defences, which may be available to the assessee under the substituted provisions of sections 147 to 151 of the IT Act and which may be available under the Finance Act, 2021 and in law. Therefore, we propose to modify the judgments and orders passed by the respective High Courts as under: (i) The respective impugned section 148 notices issued to the respective assessees shall be deemed to have been issued under section 148A of the IT Act as substituted by the Finance Act, -24- issued under the unamended Act and ought to have been issued under the substituted provisions of sections 147 to 151 of the IT Act as per the Finance Act, 2021. There appears to be genuine nonapplication of the amendments as the officers of the Revenue may have been under a bonafide belief that the amendments may not yet have been enforced. Therefore, we are of the opinion that some leeway must be shown in that regard which the High Courts could have done so. Therefore, instead of quashing and setting aside the reassessment notices issued ion of IT Act, the High Courts ought to have passed an order construing the notices issued under unamended Act/unamended provision of the IT Act as those deemed to have been issued under section 148A of the IT Act as per the new provision the Revenue ought to have been permitted to proceed further with the reassessment proceedings as per the substituted provisions of sections 147 to 151 of the IT Act as per the Finance Act, 2021, subject to compliance of all the procedural the defences, which may be available to the assessee under the substituted provisions of sections 147 to 151 of the IT Act and which may be available under the Finance Act, 2021 and in law. Therefore, we propose to modify the judgments and orders the respective High Courts as under: - (i) The respective impugned section 148 notices issued to the respective assessees shall be deemed to have been issued under section 148A of the IT Act as substituted by the Finance Act, d under the substituted provisions of sections 147 to 151 of the IT Act as per the Finance Act, 2021. There appears to be genuine nonapplication of the amendments as the officers of the Revenue may have been under a not yet have been enforced. Therefore, we are of the opinion that some leeway must be shown in that regard which the High Courts could have done so. Therefore, instead of quashing and setting aside the reassessment notices issued ion of IT Act, the High Courts ought to have passed an order construing the notices issued under unamended Act/unamended provision of the IT Act as those deemed to have been issued under section 148A of the IT Act as per the new provision the Revenue ought to have been permitted to proceed further with the reassessment proceedings as per the substituted provisions of sections 147 to 151 of the IT Act as per the Finance Act, 2021, subject to compliance of all the procedural the defences, which may be available to the assessee under the substituted provisions of sections 147 to 151 of the IT Act and which may be available under the Finance Act, 2021 and in law. Therefore, we propose to modify the judgments and orders (i) The respective impugned section 148 notices issued to the respective assessees shall be deemed to have been issued under section 148A of the IT Act as substituted by the Finance Act, TRIPTI SAINI 2025.04.11 09:48 I attest to the accuracy and integrity of this document CWP-4112-2024 2024 (O&M) 2021 and treated to be show 148A(b). The respective assessing officers shall within thirty days from today provide to the assessees the information and material relied upon by the Revenue so that the assessees can reply to the notices within two week (ii) The requirement of conducting any enquiry with the prior approval of the specified authority under section 148A(a) be dispensed with as a one-time measure vis which have been issued under Section 148 of the unamended Act from 01.04.2021 till date, including those which have been quashed by the High Courts; (iii) The assessing officers shall thereafter pass an order in terms of section 148A(d) after following the due procedure as required under section 148A(b) in respe concerned assessees; (iv) All the defences which may be available to the assessee under section 149 and/or which may be available under the Finance Act, 2021 and in law and whatever rights are available to the Assessing Officer under the open and/or shall continue to be available and; (v) The present order shall substitute/modify respective judgments and orders passed by the respective High Courts quashing the similar notices issued under unamended section -25- 2021 and treated to be show-cause notices in terms of section 148A(b). The respective assessing officers shall within thirty days from today provide to the assessees the information and material relied upon by the Revenue so that the assessees can reply to the notices within two weeks thereafter; (ii) The requirement of conducting any enquiry with the prior approval of the specified authority under section 148A(a) be time measure vis-a-vis those notices which have been issued under Section 148 of the unamended Act from 01.04.2021 till date, including those which have been quashed by the High Courts; (iii) The assessing officers shall thereafter pass an order in terms of section 148A(d) after following the due procedure as required under section 148A(b) in respect of each of the (iv) All the defences which may be available to the assessee under section 149 and/or which may be available under the Finance Act, 2021 and in law and whatever rights are available to the Assessing Officer under the Finance Act, 2021 are kept open and/or shall continue to be available and; (v) The present order shall substitute/modify respective judgments and orders passed by the respective High Courts quashing the similar notices issued under unamended section cause notices in terms of section 148A(b). The respective assessing officers shall within thirty days from today provide to the assessees the information and material relied upon by the Revenue so that the assessees can (ii) The requirement of conducting any enquiry with the prior approval of the specified authority under section 148A(a) be vis those notices which have been issued under Section 148 of the unamended Act from 01.04.2021 till date, including those which have been (iii) The assessing officers shall thereafter pass an order in terms of section 148A(d) after following the due procedure as ct of each of the (iv) All the defences which may be available to the assessee under section 149 and/or which may be available under the Finance Act, 2021 and in law and whatever rights are available Finance Act, 2021 are kept (v) The present order shall substitute/modify respective judgments and orders passed by the respective High Courts quashing the similar notices issued under unamended section TRIPTI SAINI 2025.04.11 09:48 I attest to the accuracy and integrity of this document CWP-4112-2024 9. learned ASG appearing on behalf of the Revenue and the learned Senior Advocates/learned counsel appearing on behalf of the respective assessees. We are also of the opinion that if the aforesa order is passed, it will strike a balance between the rights of the Revenue as well as the respective assesses as because of a bonafide belief of the officers of the Revenue in issuing approximately 90000 such notices, the Revenue may not suffer as ulti exchequer which would suffer. Therefore, we have proposed to pass the present order with a view avoiding filing of further appeals before this Court and burden this Court with approximately 9000 appeals against the similar judgments Courts, the particulars of some of which are referred to hereinabove. We have also proposed to pass the aforesaid order in exercise of our powers under Article 142 of the Constitution of India by holding that the pres orders passed by the High Court of Judicature at Allahabad, but shall also be made applicable in respect of the similar judgments and orders passed by various High Courts across the country and therefore the present order shall be applicable to PAN INDIA. 2024 (O&M) 148 of the IT Act irrespective of whether they have been assailed before this Court or not. There is a broad consensus on the aforesaid aspects amongst the learned ASG appearing on behalf of the Revenue and the learned Senior Advocates/learned counsel appearing on behalf of the respective assessees. We are also of the opinion that if the aforesa order is passed, it will strike a balance between the rights of the Revenue as well as the respective assesses as because of a bonafide belief of the officers of the Revenue in issuing approximately 90000 such notices, the Revenue may not suffer as ulti exchequer which would suffer. Therefore, we have proposed to pass the present order with a view avoiding filing of further appeals before this Court and burden this Court with approximately 9000 appeals against the similar judgments and orders passed by the various High Courts, the particulars of some of which are referred to hereinabove. We have also proposed to pass the aforesaid order in exercise of our powers under Article 142 of the Constitution of India by holding that the present order shall govern, not only the impugned judgments and orders passed by the High Court of Judicature at Allahabad, but shall also be made applicable in respect of the similar judgments and orders passed by various High Courts across the country and erefore the present order shall be applicable to PAN INDIA. -26- of the IT Act irrespective of whether they have been assailed before this Court or not. There is a broad consensus on the aforesaid aspects amongst the learned ASG appearing on behalf of the Revenue and the learned Senior Advocates/learned counsel appearing on behalf of the respective assessees. We are also of the opinion that if the aforesa order is passed, it will strike a balance between the rights of the Revenue as well as the respective assesses as because of a bonafide belief of the officers of the Revenue in issuing approximately 90000 such notices, the Revenue may not suffer as ultimately it is the public exchequer which would suffer. Therefore, we have proposed to pass the present order with a view avoiding filing of further appeals before this Court and burden this Court with approximately 9000 appeals and orders passed by the various High Courts, the particulars of some of which are referred to hereinabove. We have also proposed to pass the aforesaid order in exercise of our powers under Article 142 of the Constitution of India by holding that ent order shall govern, not only the impugned judgments and orders passed by the High Court of Judicature at Allahabad, but shall also be made applicable in respect of the similar judgments and orders passed by various High Courts across the country and erefore the present order shall be applicable to PAN INDIA. of the IT Act irrespective of whether they have been There is a broad consensus on the aforesaid aspects amongst the learned ASG appearing on behalf of the Revenue and the learned Senior Advocates/learned counsel appearing on behalf of the respective assessees. We are also of the opinion that if the aforesaid order is passed, it will strike a balance between the rights of the Revenue as well as the respective assesses as because of a bonafide belief of the officers of the Revenue in issuing approximately 90000 mately it is the public exchequer which would suffer. Therefore, we have proposed to pass the present order with a view avoiding filing of further appeals before this Court and burden this Court with approximately 9000 appeals and orders passed by the various High Courts, the particulars of some of which are referred to hereinabove. We have also proposed to pass the aforesaid order in exercise of our powers under Article 142 of the Constitution of India by holding that ent order shall govern, not only the impugned judgments and orders passed by the High Court of Judicature at Allahabad, but shall also be made applicable in respect of the similar judgments and orders passed by various High Courts across the country and TRIPTI SAINI 2025.04.11 09:48 I attest to the accuracy and integrity of this document CWP-4112-2024 10. Appeals are ALLOWED IN PART. The impugned common judgments and orders passed by the High Court of Judicature at Allahabad i W.T. No. 524/2021 and other allied tax appeals/petitions, is/are hereby modified and substituted as under: 2024 (O&M) 10. In view of the above and for the reasons stated above, the present Appeals are ALLOWED IN PART. The impugned common judgments and orders passed by the High Court of Judicature at Allahabad i W.T. No. 524/2021 and other allied tax appeals/petitions, is/are hereby modified and substituted as under: (i) The impugned section 148 notices issued to the respective assessees which were issued under unamended section 148 of the IT Act, which were the subject matter of writ petitions before the various respective High Courts shall be deemed to have been issued under section 148A of the IT Act as substituted by the Finance Act, 2021 and construed or treated to be show cause notices in terms of sectio assessing officer shall, within thirty days from today provide to the respective assessees information and material relied upon by the Revenue, so that the assesees can reply to the show cause notices within two weeks thereafter; (ii) The requirement of conducting any enquiry, if required, with the prior approval of specified authority under section 148A(a) is hereby dispensed with as a one avis those notices which have been issued under section 148 of the unamended Act from 01.04.2021 till date, including those which have been quashed by the High Courts. as observed hereinabove holding any enquiry with the prior -27- In view of the above and for the reasons stated above, the present Appeals are ALLOWED IN PART. The impugned common judgments and orders passed by the High Court of Judicature at Allahabad i W.T. No. 524/2021 and other allied tax appeals/petitions, is/are hereby modified and substituted as under: - (i) The impugned section 148 notices issued to the respective assessees which were issued under unamended section 148 of the subject matter of writ petitions before the various respective High Courts shall be deemed to have been issued under section 148A of the IT Act as substituted by the Finance Act, 2021 and construed or treated cause notices in terms of section 148A(b). The assessing officer shall, within thirty days from today provide to the respective assessees information and material relied upon by the Revenue, so that the assesees can reply to the show cause notices within two weeks thereafter; equirement of conducting any enquiry, if required, with the prior approval of specified authority under section 148A(a) is hereby dispensed with as a one-time measure vis avis those notices which have been issued under section 148 of 01.04.2021 till date, including those which have been quashed by the High Courts. Even otherwise as observed hereinabove holding any enquiry with the prior In view of the above and for the reasons stated above, the present Appeals are ALLOWED IN PART. The impugned common judgments and orders passed by the High Court of Judicature at Allahabad in W.T. No. 524/2021 and other allied tax appeals/petitions, is/are (i) The impugned section 148 notices issued to the respective assessees which were issued under unamended section 148 of the subject matter of writ petitions before the various respective High Courts shall be deemed to have been issued under section 148A of the IT Act as substituted by the Finance Act, 2021 and construed or treated n 148A(b). The assessing officer shall, within thirty days from today provide to the respective assessees information and material relied upon by the Revenue, so that the assesees can reply to the show- equirement of conducting any enquiry, if required, with the prior approval of specified authority under section time measure vis- avis those notices which have been issued under section 148 of 01.04.2021 till date, including those Even otherwise as observed hereinabove holding any enquiry with the prior TRIPTI SAINI 2025.04.11 09:48 I attest to the accuracy and integrity of this document CWP-4112-2024 11. The present order shall be applicable PAN INDIA and all judgments and orders passed by different High Courts on the issue and under which similar notices which were issued after 01.04.2021 issued under section 148 of the Act are set aside and shall be governed by the present order and shall stand modified to the aforesaid extent. The present order is passed in exercise of powers under Article 142 of the Constitution of India so as to avoid any further appeals by the Revenue on the very issue by challenging similar judgments and orders, with a view not to burden this Court with approximately 9000 appeals. We also observe that present order shall also govern the pending writ petitions, pending bef 2024 (O&M) approval of specified authority is not mandatory but it is for the concerned Assessing Officers to (iii) The assessing officers shall thereafter pass orders in terms of section 148A(d) in respect of each of the concerned assessees; Thereafter after following the procedure as required under section 148A may issue notice un substituted); (iv) All defences which may be available to the assesses including those available under section 149 of the IT Act and all rights and contentions which may be available to the concerned assessees and Revenue under the Fin and in law shall continue to be available. . The present order shall be applicable PAN INDIA and all judgments and orders passed by different High Courts on the issue and under which similar notices which were issued after 01.04.2021 ued under section 148 of the Act are set aside and shall be governed by the present order and shall stand modified to the aforesaid extent. The present order is passed in exercise of powers under Article 142 of the Constitution of India so as to avoid any further appeals by the Revenue on the very issue by challenging similar judgments and orders, with a view not to burden this Court with approximately 9000 appeals. We also observe that present order shall also govern the pending writ petitions, pending bef -28- approval of specified authority is not mandatory but it is for the concerned Assessing Officers to hold any enquiry, if required; (iii) The assessing officers shall thereafter pass orders in terms of section 148A(d) in respect of each of the concerned assessees; Thereafter after following the procedure as required under section 148A may issue notice under section 148 (as (iv) All defences which may be available to the assesses including those available under section 149 of the IT Act and all rights and contentions which may be available to the concerned assessees and Revenue under the Finance Act, 2021 and in law shall continue to be available. . The present order shall be applicable PAN INDIA and all judgments and orders passed by different High Courts on the issue and under which similar notices which were issued after 01.04.2021 ued under section 148 of the Act are set aside and shall be governed by the present order and shall stand modified to the aforesaid extent. The present order is passed in exercise of powers under Article 142 of the Constitution of India so as to avoid any further appeals by the Revenue on the very issue by challenging similar judgments and orders, with a view not to burden this Court with approximately 9000 appeals. We also observe that present order shall also govern the pending writ petitions, pending before various approval of specified authority is not mandatory but it is for the hold any enquiry, if required; (iii) The assessing officers shall thereafter pass orders in terms of section 148A(d) in respect of each of the concerned assessees; Thereafter after following the procedure as required der section 148 (as (iv) All defences which may be available to the assesses including those available under section 149 of the IT Act and all rights and contentions which may be available to the ance Act, 2021 . The present order shall be applicable PAN INDIA and all judgments and orders passed by different High Courts on the issue and under which similar notices which were issued after 01.04.2021 ued under section 148 of the Act are set aside and shall be governed by the present order and shall stand modified to the aforesaid extent. The present order is passed in exercise of powers under Article 142 of the Constitution of India so as to avoid any further appeals by the Revenue on the very issue by challenging similar judgments and orders, with a view not to burden this Court with approximately 9000 appeals. We also observe that present order ore various TRIPTI SAINI 2025.04.11 09:48 I attest to the accuracy and integrity of this document CWP-4112-2024 High Courts in which similar notices under Section 148 of the Act issued after 01.04.2021 are under challenge. 12. The impugned common judgments and orders passed by the High Court of Allahabad and the similar judgments and orders passed by various High Courts, more particularly, the respective judgments and orders passed by the various High Courts particulars of which are mentioned hereinabove, shall stand modified/substituted to the aforesaid extent only. 10. Therefore, in above referred to judgment of Hon’ble Supreme Court in case of Union of India and Others Vs. Ashish Aggarwa SC 543l, Hon’ble the Supreme Court held that the impugned notices 148 issued to the respective asses 148 of the Income Tax Act and were subject matter of writ petitions before the various respective High Courts shall be deemed to have been issued under Section 148-A of the Income Tax Act as substituted by the construed or treated to be show cause notices in terms of Section 148A(b). It was further held that the Assessing Officer shall, within 30 days from the date of passing of the judgment i.e. 04.05.2022 information and material relied upon by the Revenue, so that the Assessees can reply to the show cause notices within 2 weeks thereafter. It was further held by the Hon’ble Supreme Court that the requirement of conducting any enquiry, if required, with the prior approval of specified authority under Section 148A(a) is dispensed with as one time measure viz under Section 148 of the unamended Act from 01.04.2021 2024 (O&M) High Courts in which similar notices under Section 148 of the Act issued after 01.04.2021 are under challenge. . The impugned common judgments and orders passed by the High Court of Allahabad and the similar judgments and orders passed by arious High Courts, more particularly, the respective judgments and orders passed by the various High Courts particulars of which are mentioned hereinabove, shall stand modified/substituted to the aforesaid extent only. Therefore, in above referred to judgment of Hon’ble Supreme Court Union of India and Others Vs. Ashish Aggarwa , Hon’ble the Supreme Court held that the impugned notices 148 issued to the respective assessees which were issued under unamended Section 148 of the Income Tax Act and were subject matter of writ petitions before the various respective High Courts shall be deemed to have been issued under Section A of the Income Tax Act as substituted by the construed or treated to be show cause notices in terms of Section 148A(b). It was further held that the Assessing Officer shall, within 30 days from the date of passing of the judgment i.e. 04.05.2022, provide to the respective a information and material relied upon by the Revenue, so that the Assessees can reply to the show cause notices within 2 weeks thereafter. It was further held by the Hon’ble Supreme Court that the requirement of conducting any enquiry, if with the prior approval of specified authority under Section 148A(a) is dispensed with as one time measure viz-a-viz those notices which were issued under Section 148 of the unamended Act from 01.04.2021 -29- High Courts in which similar notices under Section 148 of the Act issued after 01.04.2021 are under challenge. . The impugned common judgments and orders passed by the High Court of Allahabad and the similar judgments and orders passed by arious High Courts, more particularly, the respective judgments and orders passed by the various High Courts particulars of which are mentioned hereinabove, shall stand modified/substituted to the Therefore, in above referred to judgment of Hon’ble Supreme Court Union of India and Others Vs. Ashish Aggarwal [2022] SCC Online , Hon’ble the Supreme Court held that the impugned notices under Section sees which were issued under unamended Section 148 of the Income Tax Act and were subject matter of writ petitions before the various respective High Courts shall be deemed to have been issued under Section A of the Income Tax Act as substituted by the Finance Act, 2021 and be construed or treated to be show cause notices in terms of Section 148A(b). It was further held that the Assessing Officer shall, within 30 days from the date of provide to the respective assessees information and material relied upon by the Revenue, so that the Assessees can reply to the show cause notices within 2 weeks thereafter. It was further held by the Hon’ble Supreme Court that the requirement of conducting any enquiry, if with the prior approval of specified authority under Section 148A(a) is viz those notices which were issued under Section 148 of the unamended Act from 01.04.2021 (Finance Act, 2021) High Courts in which similar notices under Section 148 of the Act . The impugned common judgments and orders passed by the High Court of Allahabad and the similar judgments and orders passed by arious High Courts, more particularly, the respective judgments and orders passed by the various High Courts particulars of which are mentioned hereinabove, shall stand modified/substituted to the Therefore, in above referred to judgment of Hon’ble Supreme Court [2022] SCC Online Section sees which were issued under unamended Section 148 of the Income Tax Act and were subject matter of writ petitions before the various respective High Courts shall be deemed to have been issued under Section Finance Act, 2021 and be construed or treated to be show cause notices in terms of Section 148A(b). It was further held that the Assessing Officer shall, within 30 days from the date of ssessees information and material relied upon by the Revenue, so that the Assessees can reply to the show cause notices within 2 weeks thereafter. It was further held by the Hon’ble Supreme Court that the requirement of conducting any enquiry, if with the prior approval of specified authority under Section 148A(a) is viz those notices which were issued (Finance Act, 2021) till TRIPTI SAINI 2025.04.11 09:48 I attest to the accuracy and integrity of this document CWP-4112-2024 date i.e. 04.05.2022 Officer shall thereafter pass orders in terms of Section 148A(d) in respect of each of the concerned assessees and thereafter, after following the procedure as required under Section 148A may issue noti 11. On 11.05.2022 Vs. Ashish Aggarwal implementation of the decision in clarified that the judgment in Ashish Aggarwal would apply to all the cases where extended reassessment notices were issued, irrespective of the fact whether such notices were challenged or not. These instructions further stated that notices would “travel back in time to their original date when such notices were to be issued and then new Section 149 of the Income Tax Act is to be applied at that point.” The instructions further elaborated the mechanism for issuing notic under Section 148 of the new regime. The Assessing Officers accordingly after considering the replies furnished by the assessees passed orders under Section 148A(d) and subsequently notices under Section 148 of the new regime were issued to the assesse 2022, for the Assessment Year 2013 2017-2018. These notices were challenged before several High Courts, who declared the notices to be invalid being time ba appropriate sanction of the specified authority. 12. In deal with the issue as to whether or not reassessment notices were issued within the time limits prescribed under the provisions of Income Tax Act 2024 (O&M) date i.e. 04.05.2022 (Decision in Ashish Aggarwal) Officer shall thereafter pass orders in terms of Section 148A(d) in respect of each of the concerned assessees and thereafter, after following the procedure as required under Section 148A may issue notice(s) under Section 148 (as substituted). On 11.05.2022 following the decision in Vs. Ashish Aggarwal, the Central Board of Direct Taxes issued instructions for the implementation of the decision in Ashish Aggarwal’s case (s clarified that the judgment in Ashish Aggarwal would apply to all the cases where extended reassessment notices were issued, irrespective of the fact whether such notices were challenged or not. These instructions further stated that “travel back in time to their original date when such notices were to be issued and then new Section 149 of the Income Tax Act is to be applied at that point.” The instructions further elaborated the mechanism for issuing notic under Section 148 of the new regime. The Assessing Officers accordingly after considering the replies furnished by the assessees passed orders under Section 148A(d) and subsequently notices under Section 148 of the new regime were issued to the assessees by the Assessing Officers for the Assessment Year 2013-2014, 2014 2018. These notices were challenged before several High Courts, who declared the notices to be invalid being time ba appropriate sanction of the specified authority. Ashish Aggarwal’s case (supra) deal with the issue as to whether or not reassessment notices were issued within the time limits prescribed under the provisions of Income Tax Act -30- sion in Ashish Aggarwal). Further that the Assessing Officer shall thereafter pass orders in terms of Section 148A(d) in respect of each of the concerned assessees and thereafter, after following the procedure as required under Section 148 (as substituted). the decision in Union of India and Others , the Central Board of Direct Taxes issued instructions for the Ashish Aggarwal’s case (supra), wherein it was clarified that the judgment in Ashish Aggarwal would apply to all the cases where extended reassessment notices were issued, irrespective of the fact whether such notices were challenged or not. These instructions further stated that reassessment “travel back in time to their original date when such notices were to be issued and then new Section 149 of the Income Tax Act is to be applied at that point.” The instructions further elaborated the mechanism for issuing notic under Section 148 of the new regime. The Assessing Officers accordingly after considering the replies furnished by the assessees passed orders under Section 148A(d) and subsequently notices under Section 148 of the new regime were es by the Assessing Officers, between July and September 2014, 2014-2015, 2015-2016, 2016-2017 and 2018. These notices were challenged before several High Courts, who declared the notices to be invalid being time barred and being issued without the Ashish Aggarwal’s case (supra) Hon’ble Supreme Court did deal with the issue as to whether or not reassessment notices were issued within the time limits prescribed under the provisions of Income Tax Act, 1961 read with he Assessing Officer shall thereafter pass orders in terms of Section 148A(d) in respect of each of the concerned assessees and thereafter, after following the procedure as required Union of India and Others , the Central Board of Direct Taxes issued instructions for the wherein it was clarified that the judgment in Ashish Aggarwal would apply to all the cases where extended reassessment notices were issued, irrespective of the fact whether such reassessment “travel back in time to their original date when such notices were to be issued and then new Section 149 of the Income Tax Act is to be applied at that point.” The instructions further elaborated the mechanism for issuing notices under Section 148 of the new regime. The Assessing Officers accordingly after considering the replies furnished by the assessees passed orders under Section 148A(d) and subsequently notices under Section 148 of the new regime were between July and September 2017 and 2018. These notices were challenged before several High Courts, who issued without the not deal with the issue as to whether or not reassessment notices were issued within the read with TRIPTI SAINI 2025.04.11 09:48 I attest to the accuracy and integrity of this document CWP-4112-2024 relaxations provided under the Taxation Provisions) Act Section 148 of the new regime issued to the assessees by the Assessing Officers between July and September 2022 2015, 2015-2016, 2016 being issued without appropriate sanction of specified authority challenged by way of filing the appeals before the Hon’ble Supreme Court in Union of India and Others Vs. Rajiv Bansal the following issues in “B. 18. 13. Before proceeding further it would be appropriate to reproduce the relevant portion of the judgment passed by the Hon’ble Supreme Court in the case of Union of India Vs. Rajeev Bansal [2024] 469 ITR 46 (SC) reproduced as under : B. 18. 2024 (O&M) relaxations provided under the Taxation and Other Laws (Relaxation of Certain t, 2020 (TOLA). Different High Courts declared the notices under Section 148 of the new regime issued to the assessees by the Assessing Officers between July and September 2022, for the Assessment Year 2013 2016, 2016-2017 and 2017-2018 to be invalid issued without appropriate sanction of specified authority challenged by way of filing the appeals before the Hon’ble Supreme Court in Union of India and Others Vs. Rajiv Bansal. T the following issues in Union of India and Others Vs. Rajiv Bansal B. Issues 18. The present batch of appeals gives rise to the following issues: a. Whether TOLA and notification issued under it will also apply to reassessment notices issued after 1 April 2021; and b. Whether the reassessment notices issued under Section 148 of the new regime between July and September 2022 are valid.” Before proceeding further it would be appropriate to reproduce the relevant portion of the judgment passed by the Hon’ble Supreme Court in the case Union of India Vs. Rajeev Bansal [2024] 469 ITR 46 (SC) reproduced as under :- Issues . The present batch of appeals give a. Whether TOLA and notification issued under it will also apply to reassessment notices issued after 1 April 2021; and -31- Other Laws (Relaxation of Certain ifferent High Courts declared the notices under Section 148 of the new regime issued to the assessees by the Assessing Officers for the Assessment Year 2013-2014, 2014 18 to be invalid, being time barred and issued without appropriate sanction of specified authority. The same were challenged by way of filing the appeals before the Hon’ble Supreme Court in . The Hon’ble Supreme Court framed Union of India and Others Vs. Rajiv Bansal :- The present batch of appeals gives rise to the following issues: Whether TOLA and notification issued under it will also apply to reassessment notices issued after 1 April 2021; and Whether the reassessment notices issued under Section 148 of the new regime between July and September 2022 are Before proceeding further it would be appropriate to reproduce the relevant portion of the judgment passed by the Hon’ble Supreme Court in the case Union of India Vs. Rajeev Bansal [2024] 469 ITR 46 (SC). The same The present batch of appeals gives rise to the following issues: Whether TOLA and notification issued under it will also apply to reassessment notices issued after 1 April 2021; and Other Laws (Relaxation of Certain ifferent High Courts declared the notices under Section 148 of the new regime issued to the assessees by the Assessing Officers 2014, 2014- being time barred and he same were challenged by way of filing the appeals before the Hon’ble Supreme Court in eme Court framed The present batch of appeals gives rise to the following issues:- Whether TOLA and notification issued under it will also apply to reassessment notices issued after 1 April 2021; and Whether the reassessment notices issued under Section 148 of the new regime between July and September 2022 are Before proceeding further it would be appropriate to reproduce the relevant portion of the judgment passed by the Hon’ble Supreme Court in the case The same is s rise to the following issues:- Whether TOLA and notification issued under it will also apply to reassessment notices issued after 1 April 2021; and TRIPTI SAINI 2025.04.11 09:48 I attest to the accuracy and integrity of this document CWP-4112-2024 C. Submissions 19. India, made the following submissions on behalf of the Revenue: 2024 (O&M) b. Whether the reassessment notices issued under Section 148 of the new regime between July and September 2022 are valid. C. Submissions 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 provide relief and relaxation to both the assesses and the Revenue during the time of COVID 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 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 previous assessment years; c. The relaxations provided under Section 3(1) of TOLA apply \"notwithstanding anything contained in the specified Act.\" Section 3(1), therefore, overrides the time limits for issuing a -32- Whether the reassessment notices issued under Section new regime between July and September 2022 are 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 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 b. Section 149 of the new regime provides three crucial benefits year time limit for all situations has been reduced (ii) the first proviso to Section 149 ensures that re-assessment ears cannot be undertaken beyond six (iii) the monetary threshold of Rupees fifty lakhs will apply to the reassessment for previous assessment years; c. The relaxations provided under Section 3(1) of TOLA apply \"notwithstanding anything contained in the specified Act.\" Section 3(1), therefore, overrides the time limits for issuing a Whether the reassessment notices issued under Section new regime between July and September 2022 are Mr N Venkataraman, learned Additional Solicitor General of standing legislation to provide relief and relaxation to both the assesses and the 19. TOLA seeks to relax actions and proceedings that could not be completed or complied with within the original time limits specified under the b. Section 149 of the new regime provides three crucial benefits year time limit for all situations has been reduced assessment ears cannot be undertaken beyond six (iii) the monetary threshold of Rupees fifty lakhs will apply to c. The relaxations provided under Section 3(1) of TOLA apply \"notwithstanding anything contained in the specified Act.\" Section 3(1), therefore, overrides the time limits for issuing a TRIPTI SAINI 2025.04.11 09:48 I attest to the accuracy and integrity of this document CWP-4112-2024 2024 (O&M) notice under Section 148 read with section 149 of the Income Tax Act; d. TOLA does not extend the life of the old regime. It merely provides a relaxation for the completion or compliance of actions following the procedure laid down under the new regime; e. The Finance Act 2021 substituted the old regime for re assessment with a new regime. The first proviso to Section 149 does not expressly bar the application of TOLA. Section 3 of TOLA 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 TOLA, then all the notices issued between 1 April 2021 and 30 June 2021 pertaining to assessment years 2013-2014, 2014 2017, and 2017-2018 will be within the period of limitation as explained in the tabulation below: Assessment Year Within 3 years Expiry of Limitation read with TOLA for 2013-2014 31.03.2017 T O L A not applicable 2014-2015 31.03.2018 T O L A not applicable 2015-2016 31.03.2019 T O L A not applicable 2016-2017 31.03.2020 30.06.2021 2017-2018 31.03.2021 30.06.2021 f. The Revenue concedes that for the assessment year 2015 all notices issued on or after 1 April 2021 will have to be -33- notice under Section 148 read with section 149 of the Income . TOLA does not extend the life of the old regime. It merely provides a relaxation for the completion or compliance of actions following the procedure laid down under the new e. The Finance Act 2021 substituted the old regime for re a new regime. The first proviso to Section 149 does not expressly bar the application of TOLA. Section 3 of TOLA applies to the entire Income Tax Act, including Sections 149 and 151 of the new regime. Once the first proviso to th TOLA, then all the notices issued between 1 April 2021 and 30 June 2021 pertaining to 2014, 2014-2015, 2015-2016, 2016 2018 will be within the period of limitation as explained in the tabulation below: Expiry of Limitation read with TOLA for Within six Years Expiry of Limitation read with TOLA for (4) (5) T O L A not applicable 31.03.2020 30.06.2021 T O L A not applicable 31.03.2021 30.06.2021 T O L A not applicable 31.03.2022 T O L A not applicable 30.06.2021 31.03.2023 T O L A not applicable 30.06.2021 31.03.2024 T O L A not applicable f. The Revenue concedes that for the assessment year 2015- all notices issued on or after 1 April 2021 will have to be notice under Section 148 read with section 149 of the Income . TOLA does not extend the life of the old regime. It merely provides a relaxation for the completion or compliance of actions following the procedure laid down under the new e. The Finance Act 2021 substituted the old regime for re- a new regime. The first proviso to Section 149 does not expressly bar the application of TOLA. Section 3 of TOLA applies to the entire Income Tax Act, including Sections 149 and 151 of the new regime. Once the first proviso to th TOLA, then all the notices issued between 1 April 2021 and 30 June 2021 pertaining to 2016, 2016- 2018 will be within the period of limitation as Expiry of Limitation read with TOLA for (4) 30.06.2021 30.06.2021 T O L A not T O L A not T O L A not -16, all notices issued on or after 1 April 2021 will have to be TRIPTI SAINI 2025.04.11 09:48 I attest to the accuracy and integrity of this document CWP-4112-2024 CONCLUSION 14. A perusal of Bansal (supra) Additional Solicitor General of India, notices issued on or after 1 April for completion during the period prescribed under TOLA 15. Admittedly, dated 06.04.2021 for the Assessment Year 2015 under Section 148A(b) judgment dated 04.05.2022 (supra) and thereafter notice Tax Act, 1961 issuance of notice as per law amended by 16. In view of the statement made by Additional Solicitor General of India in para 19 (f) of issued under Section 148 2015-2016 and consequential order Income Tax Act, 1961 for the Assessment Year 2015 limitation. 17. In view of the above, t dated 27.07.2022 issued under Section 148 2024 (O&M) dropped as they will not fall for completion during the period prescribed under TOLA; CONCLUSION A perusal of para 19 (f) of the judgment passed in the case of shows that it is conceded position of the respondents, through the Additional Solicitor General of India, that for the assessment year 2015 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 Admittedly, notice under Section 148 of the Income Tax Act, 1961 dated 06.04.2021 for the Assessment Year 2015 Section 148A(b) of the Income Tax Act, 1961 judgment dated 04.05.2022 in Union of India and Others Vs. Ashish Aggarwal and thereafter notice dated 27.07.2022 Tax Act, 1961 were issued to the petitioner without following the procedure for issuance of notice as per law amended by the Finance Act, 2021. In view of the statement made by Additional Solicitor General of para 19 (f) of Rajeev Bansal’s case (supra), issued under Section 148 of the Income Tax Act, 1961 2016 and consequential order dated 26.05.2023 Income Tax Act, 1961 for the Assessment Year 2015 In view of the above, the present writ petition is dated 27.07.2022 issued under Section 148 of the Income Tax Act, 1961 -34- dropped as they will not fall for completion during the period para 19 (f) of the judgment passed in the case of Rajiv ion of the respondents, through the for the assessment year 2015-2016, all 2021 will have to be dropped as they will not fall for completion during the period prescribed under TOLA. notice under Section 148 of the Income Tax Act, 1961 dated 06.04.2021 for the Assessment Year 2015-2016 and subsequent notices of the Income Tax Act, 1961 issued in view of the Union of India and Others Vs. Ashish Aggarwal dated 27.07.2022 under Section 148 of the Income issued to the petitioner without following the procedure for Finance Act, 2021. In view of the statement made by Additional Solicitor General of ’s case (supra), notice dated 27.07.2022 of the Income Tax Act, 1961 for the Assessment Year dated 26.05.2023 under Section 147 of the Income Tax Act, 1961 for the Assessment Year 2015-2016 would be barred by he present writ petition is allowed and notice of the Income Tax Act, 1961 and dropped as they will not fall for completion during the period Rajiv ion of the respondents, through the 16, all 2021 will have to be dropped as they will not fall notice under Section 148 of the Income Tax Act, 1961 2016 and subsequent notices in view of the Union of India and Others Vs. Ashish Aggarwal of the Income issued to the petitioner without following the procedure for In view of the statement made by Additional Solicitor General of dated 27.07.2022 for the Assessment Year under Section 147 of the barred by notice and TRIPTI SAINI 2025.04.11 09:48 I attest to the accuracy and integrity of this document CWP-4112-2024 consequential order 1961 for the Assessment Year 2015 18. Pending application (ARUN PALLI) JUDGE March 10, 2025 tripti Whether speaking/non Whether reportable 2024 (O&M) consequential order dated 26.05.2023 under Section 147 of the Income Tax Act, 1961 for the Assessment Year 2015-2016 are hereby Pending application(s), if any, also stand disposed of. (ARUN PALLI) , 2025 Whether speaking/non-speaking : Speaking Whether reportable : Yes -35- under Section 147 of the Income Tax Act, hereby set aside. , if any, also stand disposed of. (SUDEEPTI SHARMA) JUDGE speaking : Speaking : Yes under Section 147 of the Income Tax Act, TRIPTI SAINI 2025.04.11 09:48 I attest to the accuracy and integrity of this document "
Other Referred Cases
Union of India and Others Vs. Ashish Aggarwal [2022] SCC ONLINE SC 543, Union of India Vs. Rajeev Bansal [2024] 469 ITR 46 (SC)
Laws Referred To
Income Tax Act, 1961
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