M/S SOHAM TECHNO CAST ,RAJKOT vs. INCOME TAX OFFICER WARD 2(1)(2), RAJKOT, RAJKOT

आयकरअपीलीयअिधकरण,राजकोट �ायपीठ,राजकोट। In The Income Tax Appellate Tribunal, “SMC” Rajkot Bench, Rajkot

Before Dr. Arjun Lal Saini, Accountant Member आयकर अपील सं./ITA No. 832/RJT/2025 (�नधा�रणवष�/Assessment Year: (2017-18) M/s Soham Techno Cast, Income Tax Officer Ward 2(1)(2) Plot No.223-1F, Road No.T, Vs. Rajkot-360001, 80-Feet Road, AJI GIDC Rajkot-360002, Gujarat Gujarat �ायीलेखासं./जीआइआरसं./PAN/GIR No.: ABVFS1983Q (अपीलाथ�/Appellant) (��यथ�/Respondent)

Appellant by : Shri Kalpesh Doshi, Ld. AR Respondent by : Shri Abhimanyu Singh Yadav, Ld. Sr. DR Date of Hearing : 25/03/2026 : 22/06/2026 Date of Pronouncement

ORDER Per, Dr. Arjun Lal Saini, AM:

Captioned appeal filed by the assessee, pertaining to Assessment year 2016- 17, is directed against the order passed by the Learned Commissioner of Income Tax (Appeals) vide order dated 27.09.2025, which in turn arises out of an order passed by the Assessing Officer under Section 147 r.w.s. 144, of the Act, dated 16.05.2023.

reopened based on borrowed satisfaction and without application of mind, e) The Ld. AO has failed to obtain separate approval for issuing notice u/s 148A(b) of the Act, f) The notice u/s 148 of the Act is issued without Document Identification Number. 2. That, the notice issued u/s 143(2) of the Act dated 01/05/2023 is in violation of CBDT instruction F. No. 225/157/2017/ITA-II dated 23.06.2017. 3. That, the Ld. AO has wrongly made addition of Rs.34,30,995/- on account of unexplained money u/s 69A of the I.T. Act, 1961. 4. That, the Ld. AO has wrongly applied the provision of section 115BBE of the I.T. Act, 1961. 5. That, the Ld. AO has wrongly initiated penalty proceedings u/s 271AAC(1) of the I.T. Act, 1961 6. That, the Ld. AO has wrongly charged the interest u/s 234A, 234B, 234C, 234D and 244A of the I.T. Act, 1961. 7. That, the findings of the Ld. Assessing Officer are not 7 justified and are bad-in-law. 8. The appellant craves to add, amend, alter and DLEETE any of the above ground of appeals.”

Bank Name Account No. Mode of deposit Amount (in Rs.) Dena Bank 3013024021 Cash Rs.34,30,995/- Total Rs.34,30,995/-

Subsequently, the Hon'ble Supreme Court vide judgment dated 04.05.2022 (2022 SCC Online SC 543), in the case of Union of India vs Ashish Agarwal has 2

adjudicated on the validity of the issue of reassessment notices issued by the Assessing Officers during the period beginning on 1st April, 2021 and ending with 30th June 2021, within the time extended by the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020. The Hon'ble Supreme Court has held that these notices issued under the old law shall be deemed to be the show cause notices issued under clause (b) of section 148A of the new law and has directed the Assessing Officers to follow the procedure with respect to such notices. Accordingly, in view of the order dated 04.05.2022 of the Hon'ble Supreme Court, the above mentioned notice issued u/s 148 of the Income Tax Act, 1961 in the case of assessee, is deemed to be Show Cause Notice u/s 148A (b) of the Income Tax Act, 1961, for the said Assessment Year and the information and material in possession of assessing officer was provided to the assessee, on dated 30.05.2022, on the basis of which assessment / reassessment proceedings were initiated u/s 147 of the Income Tax Act, 1961 and consequently the above mentioned notice u/s 148 of the Income Tax Act, 1961, was issued to the assessee. As per the mandate given in the Judgment of the Hon'ble Supreme Court in the case cited as above, the assessee was given 2 weeks' time to explain the transactions corresponding to the abovementioned information and material along with supporting documentary evidence and to explain that these do not represent income that has escaped assessment, for the above mentioned assessment year, under the new provisions of section 147 of the Income Tax Act. On the basis of information order u/s 148A (d) was passed on 14.07.2022 in the case of assessee and notice u/s 148 was issued. In response to the notice under section 148 referred to above, the assessee had sent a communication to the assessing officer dated 20.01.2023, saying that the return filed on 21.05.2021, for the Assessment Year 2017-18 may be treated as return filed in response to notice under section 148 of the Act. Therefore, the same is treated as filed in compliance

of notice u/s 148 referred to above. Accordingly, notices u/s 143(2)/ 142(1) of I.T.Act, 1961 were issued to the assessee.

6. Learned Counsel for the assessee challenged the reopening of assessment under section 147 of the Act stating that original notice under section 148 of the Act was issued on 20.04.2021, which is reproduced below:

The ld.Counsel submitted that on perusal of the notice u/s 148A(b) of the Act dated 25/05/2022, it can be stated that income escapement represented by undisclosed asset is below Rs. 50 lacs and reopening is carried out after the end of three years from the end of assessment year (AY) 2017-18. Therefore, reassessment proceedings may be quashed.

CIT(A) and other materials brought on record. I note that reopening of assessment under section 147 of the Act is initiated without complying with the provisions of section 149(1)(a)(b) of the Act.In the assessee’s case the relevant assessment year (AY) under consideration is A.Y. 2017-18. The notice u/s 148 of the Act has been issued under unamended Act on 20/04/2021. The copy of notice is enclosed at page no. 38 of the paper book and the same is reproduced above. The notice u/s 148A of the Act has been issued on 25/05/2022, and the same is reproduced above. The notice u/s 148 of the Act dated 15/07/2022 has been issued under the amended Act, the copy of notice is enclosed at page no. 39 of paper book.I find that in order to reopen the assessment under section 147 of the Act, after a period of three years, the income escaped from assessment should be more than Rs.50,00,000/-, however, in the assessee’s case, the income escaped from assessment is only Rs.34,30,995/- therefore, jurisdiction exercised by the assessing officer to reopen the assessment of the assessee is not valid, as the income escaped from assessment is only Rs. Rs.34,30,995/-, which is below Rs. 50,00,000/- hence, reassessment proceedings initiated against the assessee under section 147 of the Act should be quashed. In this regard, it is appropriate to examine the provision of section 149 of the Act with respect to time limit for issuance of notice u/s 148 of the Act, which is reproduced below:

“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 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- (i) an asset (ii) expenditure in respect of a transaction or in relation to an event or occasion; or 8 (iii) an entry or entries in the books of account, which has escaped assessment amounts to or is likely to amount to fifty lakh rupees or more.

“Section 149, read with sections 148 and 148A, of the Income-tax Act, 1961 and section 3 of the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 and Article 142 of the Constitution of India, 1950- Income escaping assessment - Time limit for issuance of notice - Assessment years 2016-17 and 2017-18 - A notice dated 28-6-2021 under unamended section 148 was issued upon assessee in respect of relevant assessment year 2017-18-Similarly, a notice dated 30-6-2021 under unamended section 148 was issued upon assessee in respect of relevant assessment year 2016-17- Pursuant to judgment of Supreme Court in case of Union of India v. Ashish Agarwal [2022] 138 taxmann.com 64/286 Taxman 183/444 ITR 1 (SC), revenue issued another notice under section 148A(b) dated 20-5-2022 for assessment year 2017-18-Assessee contended that reassessment proceedings triggered against it were time-barred as limitation period of three years qua relevant assessment years had expired - Whether 9

reassessment notice issued on or after 1-4-2021 under unamended section 148 would be deemed to have been issued under substituted section 148A(b) and revenue could not have issued another notice under section 148A(b) for assessment year 2017-18 Held, yes Whether, further, since concededly, in instant case, alleged escaped income was less than Rs. 50 lakhs, impugned notices issued between 1-4-2021 and 30-6-2021, by which time limitation of three years under-section 149(1)(a) had already expired, these notices were barred by limitation Held, yes Whether, consequently, orders passed under section 148A(d) and consequent notices issued under section 148 concerning both assessment years could not be sustained Held, yes [Paras 54] [In favour of assessee]”

reassessment itself is quashed, all other issues on merits of the additions, in the impugned assessment proceedings, are rendered academic and infructuous.

Order is pronounced in the open court on 22/06/2026.

Sd/- (Dr. Arjun Lal Saini) लेखा सद�/Accountant Member इंदौर/Indore िदनांक/ Date: 22/06/2026 Copy of the order forwarded to :  The assessee  The Respondent  CIT  The CIT(A)  DR, ITAT, INDORE  Guard File By order //True Copy// Assistant Registrar/Sr. PS/PS ITAT, Indore