As per case facts, the petitioner was issued a Section 148 notice after April 1, 2021. Following a Supreme Court judgment, this notice was deemed a Section 148A(b) show cause ...
No Acts & Articles mentioned in this case
CWP-7405-2025(O&M)
IN THE HIGH COURT OF PUNJAB AND HARYANA
Jay Jay Agro Industries
Income Tax Officer
CORAM : HON’BLE MR. JUSTICE
HON’BLE MRS. JUSTICE
Present: Mr. Nikhil Goyal, Advocate for the petitioner.
Ms. Gauri Neo Rampal,
for the respondents.
(through Video Conferencing)
SUDEEPTI SHARMA, J.
The challenge in the present writ petition is to order dated 30.06.2022
passed under Section 148A(d),
Section 148 issued by respondent No.1
Further challenge is to
respondent No.2
BRIEF FACTS
2. Brief facts of the present case are that notice under Section 148 of the
Income Tax Act was issued
which is the date of coming into force of Finance Act, 2021 whereby Sections 147
to 151 of the Income
2025(O&M)
IN THE HIGH COURT OF PUNJAB AND HARYANA
AT CHANDIGARH
-.-
CWP
Decided on :
Jay Jay Agro Industries
VERSUS
Income Tax Officer, Ward-1, Karnal & Another
HON’BLE MR. JUSTICE ARUN PALLI
HON’BLE MRS. JUSTICE SUDEEPTI SHARMA
Mr. Nikhil Goyal, 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 order dated 30.06.2022
passed under Section 148A(d), the consequential notice dated 30.06.2022
Section 148 issued by respondent No.1 – Income
Further challenge is to the show cause notice dated 10.03.2025
respondent No.2 – National Faceless Assessment
BRIEF FACTS
Brief facts of the present case are that notice under Section 148 of the
Income Tax Act was issued to the petitioner on 16.04.2021 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. Therefore, in compliance of
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IN THE HIGH COURT OF PUNJAB AND HARYANA
AT CHANDIGARH
CWP-7405-2025(O&M)
Decided on :- 19.03.2025
....Petitioner
& Another ....Respondents
ARUN PALLI
SUDEEPTI SHARMA
Mr. Nikhil Goyal, Advocate for the petitioner.
Sr. Standing Counsel,
The challenge in the present writ petition is to order dated 30.06.2022
consequential notice dated 30.06.2022 under
Income Tax Officer, Ward-1, Karnal
show cause notice dated 10.03.2025 issued by
National Faceless Assessment Centre.
Brief facts of the present case are that notice under Section 148 of the
on 16.04.2021 i.e. after 01.04.2021,
which is the date of coming into force of Finance Act, 2021 whereby Sections 147
Tax Act, 1961 were substituted. Therefore, in compliance of
The challenge in the present writ petition is to order dated 30.06.2022
under
1, Karnal.
issued by
Brief facts of the present case are that notice under Section 148 of the
on 16.04.2021 i.e. after 01.04.2021,
which is the date of coming into force of Finance Act, 2021 whereby Sections 147
Tax Act, 1961 were substituted. Therefore, in compliance of
CWP-7405-2025(O&M)
judgment dated 04.05.2022 passed by the Hon’ble Supreme Court in
India and Others Vs. Ashish Aggarwal
Ward-1, Karnal) issued notice under Section
The petitioner filed reply to the same with certain objections regarding jurisdiction
under Section 147 of the Income Tax Act and after considering the reply
respondent No.1
raised by the petitioner and proceeded to pass an order under Section 148A(d) on
30.06.2022, confirming jurisdiction to reassess income of the petitioner under
Section 147 of the Income Tax Act and issued consequential notice under Sectio
148 of the Income Tax Act dated 30.06.2022 initiating the assessment under
Section 147 of the Income Tax Act. The petitioner challenged the notice dated
30.06.2022 and consequential proceedings by filing CWP
14.03.2023, which was ultimately
of judgment passed in CWP
Union of India and Others
Faceless Assessment Centre
furnish the information called for vide notice dated 15.01.2023 under Section
142(1) of the Income Tax Act. Another notice under Section 142(1) dated
05.02.2025 was issued by respondent No.2
in reply to which the petitioner contended that the proceedings are
the same are barred by limitation under Section 149 of the Income Tax Act
settled by Hon’ble Supreme Court in
469 ITR 46 (SC)
another show cause notice dated 10.03.2025 after dealing with the objections
2025(O&M)
judgment dated 04.05.2022 passed by the Hon’ble Supreme Court in
India and Others Vs. Ashish Aggarwal, respondent No.1 (Income Tax Officer,
1, Karnal) issued notice under Section 148A(b) of the Act on 19.05.2022.
The petitioner filed reply to the same with certain objections regarding jurisdiction
under Section 147 of the Income Tax Act and after considering the reply
respondent No.1 (Income Tax Officer, Ward-1, Karnal)
raised by the petitioner and proceeded to pass an order under Section 148A(d) on
30.06.2022, confirming jurisdiction to reassess income of the petitioner under
Section 147 of the Income Tax Act and issued consequential notice under Sectio
148 of the Income Tax Act dated 30.06.2022 initiating the assessment under
Section 147 of the Income Tax Act. The petitioner challenged the notice dated
30.06.2022 and consequential proceedings by filing CWP
14.03.2023, which was ultimately dismissed on 20.12.2024 by this Court in terms
of judgment passed in CWP-18488-2022 titled as
Union of India and Others. Thereafter on 28.01.2025, respondent No.2 (
Faceless Assessment Centre), restored the proceedin
furnish the information called for vide notice dated 15.01.2023 under Section
142(1) of the Income Tax Act. Another notice under Section 142(1) dated
05.02.2025 was issued by respondent No.2 (National Faceless Assessment Ce
n reply to which the petitioner contended that the proceedings are
the same are barred by limitation under Section 149 of the Income Tax Act
settled by Hon’ble Supreme Court in Union of India Vs. Rajeev Bansal [2024]
6 (SC). Respondent No.2 (National Faceless Assessment Centre)
another show cause notice dated 10.03.2025 after dealing with the objections
-2-
judgment dated 04.05.2022 passed by the Hon’ble Supreme Court in Union of
, respondent No.1 (Income Tax Officer,
148A(b) of the Act on 19.05.2022.
The petitioner filed reply to the same with certain objections regarding jurisdiction
under Section 147 of the Income Tax Act and after considering the reply
1, Karnal) disposed of the objections
raised by the petitioner and proceeded to pass an order under Section 148A(d) on
30.06.2022, confirming jurisdiction to reassess income of the petitioner under
Section 147 of the Income Tax Act and issued consequential notice under Sectio
148 of the Income Tax Act dated 30.06.2022 initiating the assessment under
Section 147 of the Income Tax Act. The petitioner challenged the notice dated
30.06.2022 and consequential proceedings by filing CWP-2986-2023 on
dismissed on 20.12.2024 by this Court in terms
2022 titled as M/s Patran Foods Pvt. Ltd. Vs.
on 28.01.2025, respondent No.2 (National
, restored the proceedings requesting the petitioner to
furnish the information called for vide notice dated 15.01.2023 under Section
142(1) of the Income Tax Act. Another notice under Section 142(1) dated
(National Faceless Assessment Centre)
n reply to which the petitioner contended that the proceedings are void ab initio
the same are barred by limitation under Section 149 of the Income Tax Act,
Union of India Vs. Rajeev Bansal [2024]
(National Faceless Assessment Centre) issued
another show cause notice dated 10.03.2025 after dealing with the objections
Union of
, respondent No.1 (Income Tax Officer,
148A(b) of the Act on 19.05.2022.
The petitioner filed reply to the same with certain objections regarding jurisdiction
under Section 147 of the Income Tax Act and after considering the reply,
of the objections
raised by the petitioner and proceeded to pass an order under Section 148A(d) on
30.06.2022, confirming jurisdiction to reassess income of the petitioner under
Section 147 of the Income Tax Act and issued consequential notice under Section
148 of the Income Tax Act dated 30.06.2022 initiating the assessment under
Section 147 of the Income Tax Act. The petitioner challenged the notice dated
2023 on
dismissed on 20.12.2024 by this Court in terms
M/s Patran Foods Pvt. Ltd. Vs.
National
gs requesting the petitioner to
furnish the information called for vide notice dated 15.01.2023 under Section
142(1) of the Income Tax Act. Another notice under Section 142(1) dated
ntre),
nitio as
, as
Union of India Vs. Rajeev Bansal [2024]
issued
another show cause notice dated 10.03.2025 after dealing with the objections
CWP-7405-2025(O&M)
raised by the petitioner
Builder (P) Ltd. Vs. Income T
requiring the petitioner to show cause as to why proposed variation should not be
made.
3. Hence the present petition challenging order dated 30.06.2022 under
Section 148A(d), consequential notice dated 30.06.2022 under Section 148 and
show cause notice dated 10.03.2025 on the ground that the same are barred by
limitation.
SUBMISSIONS
4. Learn
a)
show cause notice dated 10.03.2025
Income Tax Act, 1961.
b)
settled
Vs. Rajeev Bansal [2024] 469 ITR 46 (SC)
Therefore,
proposition
(Supra)
5. L earned counsel for the respondent
proposition of law as settled by Hon’ble Supreme Court
Rajeev Bansal
6. We have heard learned counsel for the
record of the present case
2025(O&M)
raised by the petitioner, in view of the judgment of Delhi High Court in
Builder (P) Ltd. Vs. Income Tax Officer (2024) 469 ITR 657 (Delhi)
requiring the petitioner to show cause as to why proposed variation should not be
Hence the present petition challenging order dated 30.06.2022 under
Section 148A(d), consequential notice dated 30.06.2022 under Section 148 and
show cause notice dated 10.03.2025 on the ground that the same are barred by
SUBMISSIONS
Learned counsel for the petitioner contends
That notice dated 30.06.2022
show cause notice dated 10.03.2025
Income Tax Act, 1961.
Further, that controversy in the present writ petition is already
settled by the Hon’ble Supreme Court
Vs. Rajeev Bansal [2024] 469 ITR 46 (SC)
Therefore, the present writ petition be allowed in terms
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-
in view of the judgment of Delhi High Court in T.K.S.
ax Officer (2024) 469 ITR 657 (Delhi), further
requiring the petitioner to show cause as to why proposed variation should not be
Hence the present petition challenging order dated 30.06.2022 under
Section 148A(d), consequential notice dated 30.06.2022 under Section 148 and
show cause notice dated 10.03.2025 on the ground that the same are barred by
ed counsel for the petitioner contends :-
notice dated 30.06.2022 issued under Section 148 and
show cause notice dated 10.03.2025 are barred by limitation under
hat controversy in the present writ petition is already
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
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
proposition of law as 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
T.K.S.
, further
requiring the petitioner to show cause as to why proposed variation should not be
Hence the present petition challenging order dated 30.06.2022 under
Section 148A(d), consequential notice dated 30.06.2022 under Section 148 and
show cause notice dated 10.03.2025 on the ground that the same are barred by
148 and
are barred by limitation under the
hat controversy in the present writ petition is already
Union of India
on 03.10.2024.
of the settled
Union of India Vs. Rajeev Bansal
legal
Union of India Vs.
and perused the whole
CWP-7405-2025(O&M)
JOINT READING
UNION OF INDIA AND OTHERS VS. ASHISH AGGARWAL
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 reassessment
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 escaping assessment
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 any other income chargeable t
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 conc
(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 shal
from the end of the relevant assessment year, unless any income
2025(O&M)
READING OF JUDGMENTS OF HON’BLE SUPREME COURT IN
UNION OF INDIA AND OTHERS VS. ASHISH AGGARWAL
ONLINE SC 543 AND UNION OF INDIA VS. RAJEEV BANSAL [2024] 469
CONCLUDES AS UNDER :-
The Finance Act, 2021 substituted the entire scheme of reassessment
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 any other income chargeable t
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 conc
(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 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
-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
l 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
[2022] SCC
ONLINE SC 543 AND UNION OF INDIA VS. RAJEEV BANSAL [2024] 469
The Finance Act, 2021 substituted the entire scheme of 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
o 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
erned
(hereafter in this section and in sections 148 to 153 referred to as the
section (3) of section
been made for the relevant assessment year, no
l be taken under this section after the expiry of four years
from the end of the relevant assessment year, unless any income
CWP-7405-2025(O&M)
chargeable to tax has escaped assessment for such assessment year by
reason of the failure on the part of the assessee to make a re
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
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
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 :
2025(O&M)
chargeable to tax has escaped assessment for such assessment year by
reason of the failure on the part of the assessee to make a re
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
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
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 :-
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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:
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:
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
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
rposes of this section, the following shall
also be deemed to be cases where income chargeable to tax has
chargeable to tax has escaped assessment for such assessment year by
turn
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:
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
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
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
rposes of this section, the following shall
also be deemed to be cases where income chargeable to tax has
CWP-7405-2025(O&M)
2025(O&M)
(a) where no return of income has been furnished by the
assessee although his total income or the total income of any
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
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 transa
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
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(a) where no return of income has been furnished by the
assessee although his total income or the total income of any
ther 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
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
(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
(a) where no return of income has been furnished by the
assessee although his total income or the total income of any
ther 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
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
ction 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
CWP-7405-2025(O&M)
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
2025(O&M)
section 133C, it is noticed by the Assessing Officer that the
income of the assessee ex
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
-7-
section 133C, it is noticed by the Assessing Officer that the
income of the assessee exceeds the maximum amount not
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
section 133C, it is noticed by the Assessing Officer that the
ceeds the maximum amount not
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
CWP-7405-2025(O&M)
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
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 specified in the proviso
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 specified in sub
153, every such notice referred to in this clause shall be deemed to be
a valid notice:
Provide
(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
2025(O&M)
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
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 specified in the proviso
to subsection (2) of section 143, as it stood immediately before the
amendment of said sub-section by the Finance Act,
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
-8-
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:
(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
assessment or recomputation as 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
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,
during the previous year corresponding to the relevant assessment
year, in the prescribed form and verified in the prescribed manner
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
section 143 after the expiry of twelve months specified in the proviso
to subsection (2) of section 143, as it stood immediately before the
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
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,
CWP-7405-2025(O&M)
(b) subsequently a notice h
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,
reassessment
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 o
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 r
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 cla
(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
2025(O&M)
(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,
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 o
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 cla
(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
-9-
as 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-section (2) of section 143, but
before the expiry of the time limit for making the assessment,
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
of October, 2005 in response to a notice served under this section.
(2) The Assessing Officer shall, before issuing any notice under this
easons 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
as 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,
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
r 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
(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
(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
CWP-7405-2025(O&M)
to any asset (including financial interest in any entity) located outside
India, chargeable to tax, has escaped as
Explanation.
escaped assessment for the purposes of this subsection, the provisions
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, 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 y
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 Commissioner or C
2025(O&M)
to any asset (including financial interest in any entity) located outside
India, chargeable to tax, has escaped as
Explanation.-In determining income chargeable to tax which has
escaped assessment for the purposes of this subsection, the provisions
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 y
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 Commissioner or C
-10-
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
of Explanation 2 of section 147 shall apply as they apply for the
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-resident under section 163 an
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.
For the removal 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
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
of Explanation 2 of section 147 shall apply as they apply for the
section (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
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
For the removal 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
ommissioner is
CWP-7405-2025(O&M)
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 Assessing Offi
below the rank of Joint Commissioner, unless the Joint Commissioner
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 for the
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
2025(O&M)
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 Assessing Offi
below the rank of Joint Commissioner, unless the Joint Commissioner
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 for the
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 prescribed
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 29.06.2020
24.06.2020 20.03.2020 to 31.12.2020
31.03.2021 31.03.2021
27.04.2021 30.04.2021
-11-
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
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
satisfied, on the reasons recorded by the Assessing Officer, that it is a
section (1), no notice
cer, who is
below the rank of Joint Commissioner, unless the Joint Commissioner
is satisfied, on the reasons recorded by such Assessing Officer, that it
), 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
issue
3.1 In pursuance to the power vested under section 3 of the Relaxation
Act, 2020, the Central Government issued following Notifications
under section 149 for
issuance of reassessment notices under section 148 of the Income Tax
CWP-7405-2025(O&M)
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.
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
2025(O&M)
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.
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
-12-
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
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".
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
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
CWP-7405-2025(O&M)
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
148A, requiring him to furnish within such period, as may be specified
in such notice, a return of his income or the inc
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 w
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.
information with the Assessing Officer which suggests that the income
chargeable to tax has escaped assessment means
2025(O&M)
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
Assessing Officer shall serve on the assessee a notice, along with a
copy of the order passed, if required, under clause (d) of section
148A, requiring him to furnish within such period, as may be specified
in such notice, a return of his income or the inc
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
tice.
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
-13-
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
Assessing Officer shall serve on the assessee a notice, along with a
copy of the order passed, if required, under clause (d) of section
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
ith 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-
. Before making the assessment, reassessment or recomputation
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
148A, requiring him to furnish within such period, as may be specified
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 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
ith 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
CWP-7405-2025(O&M)
(i) any information flagged in the case of the assessee for t
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 ass
the relevant assessment year has not been made in accordance with
the provisions of this Act.
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 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 book
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,
2025(O&M)
(i) any information flagged in the case of the assessee for t
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 ass
the relevant assessment year has not been made in accordance with
the provisions of this Act.
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
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
der 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 book
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,
-14-
(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
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
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
der 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,
he relevant
assessment year in accordance with the risk management strategy
General
essee for
the relevant assessment year has not been made in accordance with
(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
der section 132 or under section 132A in case of any other person
(iv) the Assessing Officer is satisfied, with the prior approval of
s 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,
CWP-7405-2025(O&M)
relate to, the assessee, the Assessing Of
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 th
account, other documents or any assets are requisitioned or survey is
conducted in the case of the assessee or money, bullion, jewellery or
other valuable article or thing or books of account or documents are
seized or req
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
2025(O&M)
relate to, the assessee, the Assessing Of
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 th
account, other documents or any assets are requisitioned or survey is
conducted in the case of the assessee or money, bullion, jewellery or
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
-15-
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
other valuable article or thing or books of account or documents are
uisitioned 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
ficer 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
e 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
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
CWP-7405-2025(O&M)
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
(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 en
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
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
(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
2025(O&M)
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);
(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 en
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
(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
-16-
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);
(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
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
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, in the case of any
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
(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
d 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
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
CWP-7405-2025(O&M)
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
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 s
in a case for the relevant assessment year beginning on or before 1st
2025(O&M)
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
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 s
in a case for the relevant assessment year beginning on or before 1st
-17-
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
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
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
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
hall be issued at any time
in a case for the relevant assessment year beginning on or before 1st
CWP-7405-2025(O&M)
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
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 purp
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 an
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 orde
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.
2025(O&M)
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
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 purp
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 orde
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.
-18-
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
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
Provided also that for the purposes 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
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 orde
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
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
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
oses 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
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
CWP-7405-2025(O&M)
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 provis
Sanction for issue of notice
"151
148A shall be
(i) Principal Commissioner or Principal Director or Commissioner or
Director, if three years or less than three year
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
2025(O&M)
Explanation.-For the purposes of clause (b) o
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-
"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 year
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
-19-
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
ions of section 151.'
. 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
f 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
. Specified authority for the purposes of section 148 and section
(i) Principal Commissioner or Principal Director or Commissioner or
s 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
CWP-7405-2025(O&M)
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
“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
2025(O&M)
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
judgment of Hon’ble Supreme Court in Union of India and Others Vs. Ashish
[2022] SCC Online SC 543 is reproduced as under:
. 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
-20-
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:-
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
. 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
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
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
. 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
CWP-7405-2025(O&M)
(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,
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
2025(O&M)
(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,
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
-21-
(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,
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
, 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,
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
CWP-7405-2025(O&M)
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
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 assessi
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 as
2025(O&M)
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
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 assessi
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
-22-
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
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
conducting any enquiry, the assessing officer may do so and conduct
sessing officer is of the opinion that any
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
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
ng 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
sessing officer is of the opinion that any
CWP-7405-2025(O&M)
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 asses
6.6
for issuance of notice under section 148 of the IT Act. The substituted
section 149 of the IT Act has reduced the permissible time limit for
issuance of such a notice to three y
ten years. It also provides further additional safeguards which were
absent under the earlier regime pre
7.
being remedial and benevolent
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 avai
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.
8.
Courts would result in no reassessment proceedings at all, even if the
same are permissible under the Finance Act, 2021 and as per
2025(O&M)
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
section 149 of the IT Act has reduced the permissible time limit for
issuance of such a notice to three y
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
-23-
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
Substituted section 149 is the provision governing the time limit
for issuance of notice under section 148 of the IT Act. The substituted
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.
Thus, the new provisions substituted by the Finance Act, 2021
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
lable 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.
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
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
Substituted section 149 is the provision governing the time limit
for issuance of notice under section 148 of the IT Act. The substituted
section 149 of the IT Act has reduced the permissible time limit for
ears and only in exceptional cases
ten years. It also provides further additional safeguards which were
Thus, the new provisions substituted by the Finance Act, 2021
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
lable 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
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
CWP-7405-2025(O&M)
substituted sections 147 to 151 of the IT Act. The Revenue cannot be
made r
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
issued under the unamended Act and ought to have been issued under
the substituted provisions of sections 147 to 151 of the
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
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 cons
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
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
2025(O&M)
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
48 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
issued under the unamended Act and ought to have been issued under
the substituted provisions of sections 147 to 151 of the
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
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
-24-
substituted sections 147 to 151 of the IT Act. The Revenue cannot be
emediless 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
48 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
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
under the unamended provision of IT Act, the High Courts ought to
truing 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
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
substituted sections 147 to 151 of the IT Act. The Revenue cannot be
emediless 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
48 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
issued under the unamended Act and ought to have been issued under
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.
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
truing 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
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
CWP-7405-2025(O&M)
assessee under the su
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:
2025(O&M)
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,
2021 and treated to be show
148A(b). The respective assessi
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 wit
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 respect of each of the
concerned assessees;
(iv) All the defences which may be available to the assessee
under section 149 and/or which may be available under the
-25-
bstituted 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: -
ned 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,
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
uashed 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
ch may be available to the assessee
under section 149 and/or which may be available under the
bstituted 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
ned 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,
cause notices in terms of section
ng 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
h 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
required under section 148A(b) in respect of each of the
ch may be available to the assessee
under section 149 and/or which may be available under the
CWP-7405-2025(O&M)
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
2025(O&M)
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 avai
(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
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
-26-
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
148 of the IT Act irrespective of whether they have been
ore 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
Finance Act, 2021 and in law and whatever rights are available
to the Assessing Officer under the 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
148 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
CWP-7405-2025(O&M)
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.
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:
2025(O&M)
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.
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
-27-
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.
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;
(ii) The requirement of conducting any enquiry, if required,
with the prior approval of specified authority under section
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
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-
(ii) The requirement of conducting any enquiry, if required,
with the prior approval of specified authority under section
CWP-7405-2025(O&M)
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 01.0
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
2025(O&M)
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
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
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 und
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 01.0
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
-28-
148A(a) is hereby dispensed with as a one-time measure vis
avis those notices which have been issued under section 148 of
d Act from 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
approval of specified authority is not mandatory but it is for the
ficers 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
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
time measure vis-
avis those notices which have been issued under section 148 of
d Act from 01.04.2021 till date, including those
Even otherwise
as observed hereinabove holding any enquiry with the prior
approval of specified authority is not mandatory but it is for the
ficers 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
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
er the Finance Act, 2021
. The present order shall be applicable PAN INDIA and all
judgments and orders passed by different High Courts on the issue
4.2021
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
CWP-7405-2025(O&M)
under Article 142 of the Constitution of India so as to
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, p
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 p
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 r
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 assessees which were
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 Finance Act, 20
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
2025(O&M)
under Article 142 of the Constitution of India so as to
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, p
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 p
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.
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
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, 20
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 assessees
-29-
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
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
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
eferred 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
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 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
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
ending before various
High Courts in which similar notices under Section 148 of the Act
. The impugned common judgments and orders passed by the High
assed 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
eferred to judgment of Hon’ble Supreme Court
[2022] SCC Online
Section
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
21 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
CWP-7405-2025(O&M)
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
dispensed with as one time measure viz
under Section 148 of the unamended Act from 01.04.2021
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 notice
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 reassessment
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 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
issued to the assessees by the Assess
2022, for the Assessment Year 2013
2025(O&M)
tion 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-a-viz those notices which were issued
under Section 148 of the unamended Act from 01.04.2021
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 Sect
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 (supra
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 notices
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
-30-
tion 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
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)
ggarwal). 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 notices
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
ing Officers, between July and September
2014, 2014-2015, 2015-2016, 2016-2017 and
tion 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
approval of specified authority under Section 148A(a) is
viz those notices which were issued
(Finance Act, 2021) till
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
t 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 notices
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
CWP-7405-2025(O&M)
2017-2018. These notices were challenged before several High Courts, who
declared the notices to be invalid being time barred and
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
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
2025(O&M)
2018. These notices were challenged before several High Courts, who
declared the notices to be invalid being time barred and
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
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
-31-
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
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
2018. These notices were challenged before several High Courts, who
ssued without the
not
deal with the issue as to whether or not reassessment notices were issued within the
read with
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
CWP-7405-2025(O&M)
of Union of India Vs. Rajeev Bansal [2024] 469 ITR 46 (SC)
reproduced as under :
B.
18.
C. Submissions
19.
India, made the following submissions on behalf of the Revenue:
2025(O&M)
Union of India Vs. Rajeev Bansal [2024] 469 ITR 46 (SC)
reproduced as under :-
Issues
18. 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
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;
-32-
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
Whether the reassessment notices issued under Section
the 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 to
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
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
Whether the reassessment notices issued under Section
the new regime between July and September 2022 are
Mr N Venkataraman, learned Additional Solicitor General of
on 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
CWP-7405-2025(O&M)
2025(O&M)
(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 cont
Section 3(1), therefore, overrides the time limits for issuing a
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
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 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:
-33-
(ii) the first proviso to Section 149 ensures that re-assessment
t years 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
notice under Section 148 read with section 149 of the Income
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
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
2014, 2014-2015, 2015-2016, 2016
2018 will be within the period of limitation as
explained in the tabulation below:
assessment
t years 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
ained in the specified Act."
Section 3(1), therefore, overrides the time limits for issuing a
notice under Section 148 read with section 149 of the Income
d. TOLA does not extend the life of the old regime. It merely
completion or compliance of
actions following the procedure laid down under the new
e. The Finance Act 2021 substituted the old regime for re-
assessment with a new regime. The first proviso to Section 149
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
2016, 2016-
2018 will be within the period of limitation as
CWP-7405-2025(O&M)
CONCLUSION
14. A perusal of
Bansal (supra)
Additional Solicitor General of India,
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 TOL
15. Admittedly,
consequential notice dated 30.06.2022 under Section 148 and show cause notice
dated 10.03.2025
2025(O&M)
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
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 TOL
Admittedly, Order dated 30.06.2022 under Section 148A(d),
consequential notice dated 30.06.2022 under Section 148 and show cause notice
dated 10.03.2025 for the Assessment Year 2015
-34-
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
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 2015-16, all
notices issued on or after 1 April 2021 will have to be dropped as they will not fall
for completion during the period prescribed under TOLA.
Order dated 30.06.2022 under Section 148A(d),
consequential notice dated 30.06.2022 under Section 148 and show cause notice
for the Assessment Year 2015-2016 were issued to the petitioner
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
dropped as they will not fall for completion during the period
Rajiv
ion of the respondents, through the
16, all
notices issued on or after 1 April 2021 will have to be dropped as they will not fall
Order dated 30.06.2022 under Section 148A(d), the
consequential notice dated 30.06.2022 under Section 148 and show cause notice
issued to the petitioner
CWP-7405-2025(O&M)
without following the procedure for issuance of notice as per law amended by
Finance Act, 2021.
16. In view of the statement made by Additional Solicitor General of
India in para 19 (f) of
Section 148A(d),
the show cause notice dated 10.03.2025 would be barred by limitation.
17. In view of the above, t
dated 30.06.2022 unde
30.06.2022 under Section 148 and
hereby set aside.
18. Pending application
(ARUN PALLI)
JUDGE
March 19, 2025
tripti
Whether speaking/non
Whether reportable
2025(O&M)
without following the procedure for issuance of notice as per law amended by
Finance Act, 2021.
In view of the statement made by Additional Solicitor General of
para 19 (f) of Rajeev Bansal’s case (supra),
Section 148A(d), the consequential notice dated 30.06.2022 under Section 148 and
show cause notice dated 10.03.2025 would be barred by limitation.
In view of the above, the present writ petition is
dated 30.06.2022 under Section 148A(d),
30.06.2022 under Section 148 and the show cause notice dated 10.03.2025 are
set aside.
Pending application(s), if any, also stand disposed of.
(ARUN PALLI)
, 2025
Whether speaking/non-speaking : Speaking
Whether reportable : Yes
-35-
without following the procedure for issuance of notice as per law amended by
In view of the statement made by Additional Solicitor General of
’s case (supra), Order dated 30.06.2022 under
consequential notice dated 30.06.2022 under Section 148 and
show cause notice dated 10.03.2025 would be barred by limitation.
he present writ petition is allowed and Order
r Section 148A(d), the consequential notice dated
show cause notice dated 10.03.2025 are
, if any, also stand disposed of.
(SUDEEPTI SHARMA)
JUDGE
speaking : Speaking
: Yes
without following the procedure for issuance of notice as per law amended by the
In view of the statement made by Additional Solicitor General of
under
consequential notice dated 30.06.2022 under Section 148 and
and Order
consequential notice dated
show cause notice dated 10.03.2025 are
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