PATRAN FOODS PRIVATE LIMITED vs. INCOME TAX OFFICER AND ANOTHER

CWP-10888-20 IN T Patran Foods Pr Income Tax Off CORAM : HO HO Present: Mr Ms for (thr SUDEEPTI SH The 29.07.2022 (Ann (hereinafter refe Ward Sangrur) proceedings. BRIEF FACTS 2. Bri issued notice un (Income Tax O without followin amended by Fin 025(O&M) THE HIGH COURT OF PUNJ AT CHANDIGA -.- CW De rivate Limited VERSUS ficer, Ward Sangrur & Another ON’BLE MRS. JUSTICE LISA ON’BLE MRS. JUSTICE SUD r. Nikhil Goyal, Advocate for the s. Gauri Neo Rampal, Sr. Standin the respondents. rough Video Conferencing) -.- HARMA, J. e challenge in the present wr nexure P-4) issued under Sectio erred to as ‘the Act’) by respo , for the Assessment Year 2 S ief facts of the present case ar nder Section 148 of the Act o fficer, Ward Sangrur). Since n ng the procedure established fo nance Act, 2021 and this issue w -1- JAB AND HARYANA ARH WP-10888-2025(O&M) cided on :- 24.04.2025 ....Petitioner ....Respondents A GILL EEPTI SHARMA e petitioner. ng Counsel, rit petition is to the notice da n 148 of the Income Tax Act, 19 ondent No.1 (Income Tax Offic 2015-2016 and the consequen re that the petitioner was initia on 12.04.2021 by respondent N notice dated 12.04.2021 was issu or issuance of notice as per the was finally decided by the Hon’ ated 961 cer, ntial ally No.1 ued law ’ble TRIPTI SAINI 2025.05.07 13:26 I attest to the accuracy and integrity of this document CWP-10888-20 Supreme Court [2022] SCC On Supreme Court Sangrur) issued the petitioner re exercise of juris Res objections raise 148A(d) of the income of the p notice dated 29 under Section 14 The consequential p decided along w Union of India Tha [2024] 469 ITR with respect to directions issued and Other Law (hereinafter refe Tha dismissed by th 025(O&M) on 04.05.2022 in Union of India nline SC 543, therefore, in com dated 04.05.2022, respondent d notice under Section 148A(b) esponded to and raised objection sdiction under Section 147 of the spondent No.1 (Income Tax Offi d by the petitioner and proceed Act on 29.07.2022, confirmin etitioner under Section 147 of th 9.07.2022 under Section 148 of 47 of the Act. e petitioner challenged the n proceedings by way of filing with CWP-18488-2022, titled a and Others. at Hon’ble Supreme Court in U 46 (SC) vide its judgment dated o the computation of limitati d in Union of India and Others ws (Relaxation and Amendment erred to as ‘TOLA’). at on 20.12.2024, CWP-21897 his Court on the limited issue o -2- a and Others Vs. Ashish Aggarw mpliance of the decision of Hon’ No.1 (Income Tax Officer, W of the Act on 01.06.2022 to wh ns on various grounds regarding e Act. ficer, Ward Sangrur) disposed of ded to pass the order under Sect ng the jurisdiction to re-assess he Act and issued the consequen f the Act, initiating the assessm notice dated 29.07.2022 and of CWP-21897-2022, which w as M/s Patran Foods Pvt. Ltd. Union of India Vs. Rajeev Ban d 03.10.2024 settled the controve on taking into consideration Vs. Ashish Aggarwal and Taxat t of Certain Provisions) Act, 20 -2022 filed by the petitioner w of competence of the jurisdictio wal ’ble Ward hich the f the tion the ntial ment the was Vs. nsal ersy the tion 020 was onal TRIPTI SAINI 2025.05.07 13:26 I attest to the accuracy and integrity of this document CWP-10888-20 assessing office provisions of S raise other objec On Centre) restored Act calling upo reassessment pro The of the proceedin to the notice d objections rega 2015-2016 by r Supreme Court whereas another issued by respon 3. Hen Section 148 of t are barred by lim SUBMISSIONS 4. Lea a) Act 025(O&M) er to issue a notice under Secti ection 151A of the Act. Libert ctions relating to orders passed b n 31.01.2025 respondent No.2 d the proceedings by issuing a n on the petitioner to furnish in oceedings for the Assessment Y e petitioner raised objections on ngs. The petitioner further filed dated 31.01.2025. The petitio rding the continuation of proc relying upon the concession ma in Union of India Vs. Rajeev r notice dated 16.04.2025 for th ndent No.2 (National Faceless A nce the present petition challeng the Act and consequential proce mitation. S arned counsel for the petitioner c That notice dated 29.07.202 t is barred by limitation. -3- on 148 of the Act in terms of ty was granted to the petitioner by jurisdictional Assessing Office 2 (National Faceless Assessm notice under Section 142(1) of nformation in connection with ear 2015-2016. n 11.02.2025 regarding the valid reply dated 14.02.2025 in respo oner further on 26.02.2025 rai ceedings for the Assessment Y ade by the revenue before Hon’ v Bansal [2024] 469 ITR 46 (S he Assessment Year 2015-2016 w Assessment Centre). ging notice dated 29.07.2022 un eedings on the ground that the sa contends :- 22 issued under Section 148 of the r to er. ment the the dity onse ised Year ’ble SC) was nder ame the TRIPTI SAINI 2025.05.07 13:26 I attest to the accuracy and integrity of this document CWP-10888-20 b) sett Vs. The pro (Su 5. Lea proposition of l Rajeev Bansal 6. We record of the pre JOINT READI UNION OF IN ONLINE SC 54 ITR 46 (SC) CO 7. The under Sections 1 8. Prio reassessment pr Tax Act, 1961:- "In 147 cha may 025(O&M) Further, that controversy in tled by the Hon’ble Supreme C Rajeev Bansal [2024] 469 erefore, the present writ petition oposition of law in the case of U upra). arned counsel for the respon law as settled by Hon’ble Supr (Supra), by which the case of th e have heard learned counsel for esent case. ING OF JUDGMENTS OF HO NDIA AND OTHERS VS. AS 43 AND UNION OF INDIA V ONCLUDES AS UNDER:- e Finance Act, 2021 substituted 147 to 151 of the Income Tax Ac or to the coming into force o roceedings was governed by th ncome escaping assessment 7. If the Assessing Officer has argeable to tax has escaped asse y, subject to the provisions of -4- the present writ petition is alre ourt in the case of Union of In 9 ITR 46 (SC) on 03.10.20 n be allowed in terms of the sett Union of India Vs. Rajeev Ban ndents could not rebut the le reme Court in Union of India he petitioner is covered. r the parties and perused the wh ON’BLE SUPREME COURT SHISH AGGARWAL [2022] S VS. RAJEEV BANSAL [2024] 4 d the entire scheme of reassessm ct, 1961 w.e.f. 01.04.2021. of Finance Act, 2021 initiation he following provisions of Inco reason to believe that any inco essment for any assessment year, of sections 148 to 153, assess ady ndia 024. tled nsal egal Vs. hole IN SCC 469 ment n of ome ome , he or TRIPTI SAINI 2025.05.07 13:26 I attest to the accuracy and integrity of this document CWP-10888-20 rea wh sub rec allo (he rele Pro 143 act from cha rea und (1) ma Pr app fina tax Pr inc 025(O&M) assess such income and also an ich has escaped assessment bsequently in the course of the p computed the loss or the depr owance, as the case may be, f ereafter in this section and in sec evant assessment year): ovided that where an assessmen 3 or this section has been made f tion shall be taken under this se m the end of the relevant ass argeable to tax has escaped asse ason of the failure on the part der section 139 or in response to of section 142 or section 148 terial facts necessary for his ass rovided further that nothing co ply in a case where any income ancial interest in any entity) lo x, has escaped assessment for any rovided also that the Assessing O come, other than the income invo -5- ny other income chargeable to and which comes to his no proceedings under this section, reciation allowance or any ot for the assessment year concern ctions 148 to 153 referred to as nt under sub-section (3) of sect for the relevant assessment year, ection after the expiry of four ye sessment year, unless any inco essment for such assessment year of the assessee to make a ret o a notice issued under sub-sect 8 or to disclose fully and truly sessment, for that assessment yea ontained in the first proviso sh in relation to any asset (includ cated outside India, chargeable y assessment year: Officer may assess or reassess s olving matters which are the subj tax tice , or ther ned the tion , no ears ome r by turn tion all ar: hall ding e to uch ject TRIPTI SAINI 2025.05.07 13:26 I attest to the accuracy and integrity of this document CWP-10888-20 ma tax Exp boo dili nec pro Exp also esc 025(O&M) tters of any appeal, reference o x and has escaped assessment. planation 1.-Production before oks or other evidence from whic igence have been discovered b cessarily amount to disclosure w oviso. planation 2.-For the purposes o o be deemed to be cases whe caped assessment, namely :- (a) where no return of in assessee although his total other person in respect of wh during the previous year exc is not chargeable to income- (b) where a return of inc assessee but no assessment h the Assessing Officer that income or has claimed exces relief in the return; (ba) where the assessee has f of any international transa under section 92E; (c) where an assessment has -6- or revision, which is chargeable the Assessing Officer of acco ch material evidence could with d by the Assessing Officer will within the meaning of the forego of this section, the following sh ere income chargeable to tax ncome has been furnished by income or the total income of a hich he is assessable under this ceeded the maximum amount wh tax; come has been furnished by has been made and it is noticed the assessee has understated ssive loss, deduction, allowance failed to furnish a report in resp action which he was so requi been made, but- e to ount due not oing hall has the any Act hich the d by the e or pect ired TRIPTI SAINI 2025.05.07 13:26 I attest to the accuracy and integrity of this document CWP-10888-20 Exp this in r com und hav of s 025(O&M) (i) income chargeable to tax (ii) such income has been ass (iii) such income has been m under this Act; or (iv) excessive loss or depr allowance under this Act has (ca) where a return of inco assessee or a return of inco on the basis of information prescribed income-tax auth section 133C, it is noticed income of the assessee ex chargeable to tax, or as th understated the income o deduction, allowance or relie (d) where a person is fou financial interest in any entit planation 3.-For the purpose of s section, the Assessing Officer respect of any issue, which has e mes to his notice subsequently der this section, notwithstandin ve not been included in the reas section 148. -7- has been underassessed; or sessed at too low a rate; or made the subject of excessive re reciation allowance or any ot s been computed; ome has not been furnished by me has been furnished by him a n or document received from hority, under sub-section (2) by the Assessing Officer that xceeds the maximum amount he case may be, the assessee or has claimed excessive lo ef in the return; und to have any asset (includ ty) located outside India. f assessment or reassessment un may assess or reassess the inco escaped assessment, and such is in the course of the proceedi ng that the reasons for such is sons recorded under subsection elief ther the and the of the not has oss, ding nder ome ssue ings ssue (2) TRIPTI SAINI 2025.05.07 13:26 I attest to the accuracy and integrity of this document CWP-10888-20 Exp the sha bef Issu 148 rec the may any dur yea and pro suc Pr (a) on Sep (b) sec to s am but 025(O&M) planation 4.-For the removal of e provisions of this section, as a all also be applicable for any fore the 1st day of April, 2012. ue of notice where income has e 8. (1) Before making the computation under section 147, t e assessee a notice requiring him y be specified in the notice, a re y other person in respect of wh ring the previous year correspo ar, in the prescribed form and d setting forth such other particu ovisions of this Act shall, so far ch return were a return required rovided that in a case- where a return has been furnis the 1st day of October, 1991 ptember, 2005 in response to a n subsequently a notice has bee ction 143 after the expiry of twe subsection (2) of section 143, a endment of said sub-section by t before the expiry of the time li -8- f doubts, it is hereby clarified t amended by the Finance Act, 20 assessment year beginning on escaped assessment e assessment, reassessment the Assessing Officer shall serve m to furnish within such period, eturn of his income or the income ich he is assessable under this onding to the relevant assessm verified in the prescribed man ulars as may be prescribed; and as may be, apply accordingly a to be furnished under section 13 hed during the period commenc 1 and ending on the 30th day notice served under this section, a en served under sub-section (2) elve months specified in the prov as it stood immediately before the Finance Act, 2002 (20 of 20 imit for making the assessment, that 012, n or or e on , as e of Act ment nner the as if 39: cing y of and ) of viso the 002) re- TRIPTI SAINI 2025.05.07 13:26 I attest to the accuracy and integrity of this document CWP-10888-20 ass 153 a v Pro (a) on Sep and (b) sec in bef rea sec dee Exp not app of O (2) sec Tim 149 ass 025(O&M) sessment or recomputation as sp 3, every such notice referred to i alid notice: ovided further that in a case- where a return has been furnis the 1st day of October, 1991 ptember, 2005, in response to a d subsequently a notice has bee ction (2) of section 143 after the the proviso to clause (ii) of su fore the expiry of the time l assessment or recomputation a ction 153, every such notice re emed to be a valid notice. planation.-For the removal of thing contained in the first pro ply to any return which has bee October, 2005 in response to a n The Assessing Officer shall, be ction, record his reasons for doin me limit for notice :- 9. (1) No notice under section 1 sessment year- -9- pecified in sub-section (2) of sect in this clause shall be deemed to hed during the period commenc 1 and ending on the 30th day a notice served under this secti en served under clause (ii) of s e expiry of twelve months specif ub-section (2) of section 143, limit for making the assessme as specified in sub-section (2) eferred to in this clause shall doubts, it is hereby declared t oviso or the second proviso sh en furnished on or after the 1st d notice served under this section. efore issuing any notice under ng so. 148 shall be issued for the relev tion o be cing y of ion, sub- fied but ent, of be that hall day this vant TRIPTI SAINI 2025.05.07 13:26 I attest to the accuracy and integrity of this document CWP-10888-20 (a) yea (b) end tax one (c) the to a Ind Exp esc of pur (2) sub (3) a p the pur res six Exp pro 025(O&M) if four years have elapsed from ar, unless the case falls under cla if four years, but not more tha d of the relevant assessment yea x which has escaped assessment a e lakh rupees or more for that ye if four years, but not more tha e end of the relevant assessment any asset (including financial in dia, chargeable to tax, has escap planation.-In determining incom caped assessment for the purpose Explanation 2 of section 147 rposes of that section. The provisions of sub-section ( bject to the provisions of section If the person on whom a notice person treated as the agent of a n e assessment, reassessment or rsuance of the notice is to be mad ident, the notice shall not be iss years from the end of the releva planation.-For the removal of do ovisions of sub-sections (1) and ( -10- m the end of the relevant assessm ause (b) or clause (c); an six years, have elapsed from ar unless the income chargeable amounts to or is likely to amoun ear; n sixteen years, have elapsed fr t year unless the income in relat terest in any entity) located outs ed assessment. me chargeable to tax which es of this subsection, the provisi shall apply as they apply for (1) as to the issue of notice shall 151. under section 148 is to be serve non-resident under section 163 a r recomputation to be made de on him as the agent of such n sued after the expiry of a period ant assessment year. oubts, it is hereby clarified that (3), as amended by the Finance A ment the e to nt to rom tion side has ions the l be d is and in non- d of the Act, TRIPTI SAINI 2025.05.07 13:26 I attest to the accuracy and integrity of this document CWP-10888-20 201 or b San 151 Off rele Ch sat fit c (2) sha bel is s is a (3) Pri Pri Com rec of n 3.1 Act inte 025(O&M) 12, shall also be applicable for before the 1st day of April, 2012 nction for issue of notice :- 1. (1) No notice shall be issued ficer, after the expiry of a perio evant assessment year, unless th ief Commissioner or Principal isfied, on the reasons recorded b case for the issue of such notice. In a case other than a case falli all be issued under section 148 low the rank of Joint Commissio satisfied, on the reasons recorde a fit case for the issue of such no For the purposes of sub-sec incipal Chief Commissioner or incipal Commissioner or th mmissioner, as the case may b corded by the Assessing Officer a notice under section 148, need n In pursuance to the power veste t, 2020, the Central Governme er-alia extending the time lines -11- any assessment year beginning 2. under section 148 by an Assess d of four years from the end of he Principal Chief Commissioner Commissioner or Commissione by the Assessing Officer, that it ing under sub-section (1), no no 8 by an Assessing Officer, who oner, unless the Joint Commissio ed by such Assessing Officer, tha tice. ction (1) and sub-section (2), r the Chief Commissioner or he Commissioner or the Jo be, being satisfied on the reas about fitness of a case for the is ot issue such notice himself." ed under section 3 of the Relaxat ent issued following Notificati s prescribed under section 149 g on sing f the r or r is is a tice o is oner at it the the oint sons ssue tion ions for TRIPTI SAINI 2025.05.07 13:26 I attest to the accuracy and integrity of this document CWP-10888-20 issu Act Date 31.0 24.0 31.0 27.0 The 27t also am pro 3.2 151 by 202 w.e Inc "14 esc may rea allo 025(O&M) uance of reassessment notices un t, 1961: e of Notification Original lim issuance of Section 148 of 03.2020 20.03.2020 to 06.2020 20.03.2020 to 03.2021 31.03.2021 04.2021 30.04.2021 e Explanations to the Notificat th April, 2021 issued under sec o stipulated that the provisio endment by the Finance Act, 20 oceedings initiated thereunder. 2 The Parliament introduced refo 1 of the Income Tax Act, 1961 go way of the Finance Act, 2021, 21. The substituted sections 147 e.f. 01.04.2021, passed in the Fin come escaping assessment- 47. If any income chargeable to caped assessment for any asses y, subject to the provisions of assess such income or recomp owance or any other allowance -12- nder section 148 of the Income T mitation for notice under of the Act Extended Limitation o 29.06.2020 30.06.2020 o 31.12.2020 31.03.2021 30.04.2021 30.06.2021 tions dated 31st March, 2021 a ction 3 of the Relaxation Act, 20 ons, as they existed prior to 021, shall apply to the reassessm ormative changes to sections 147 overning reassessment proceedi which was passed on 28th Mar 7 to 149 and section 151 applica nance Act, 2021, are as under:- tax, in the case of an assessee, ssment year, the Assessing Offi of sections 148 to 153, assess pute the loss or the depreciat e or deduction for such assessm Tax and 020 the ment 7 to ings rch, able has ficer or tion ment TRIPTI SAINI 2025.05.07 13:26 I attest to the accuracy and integrity of this document CWP-10888-20 yea as t Exp rec rea ass cou tha Issu 148 und Ass cop 148 in per pre pre for of t wer Pr is 025(O&M) ar (hereafter in this section and the relevant assessment year). planation.-For the purposes of computation under this section, t assess the income in respect o sessment, and such issue comes urse of the proceedings under th at the provisions of section 148A ue of notice where income has e 8. Before making the assessmen der section 147, and subject to sessing Officer shall serve on th py of the order passed, if requ 8A, requiring him to furnish with such notice, a return of his in rson in respect of which he is as evious year corresponding to th escribed form and verified in t th such other particulars as may this Act shall, so far as may be, re a return required to be furnish rovided that no notice under this information with the Assessing -13- d in sections 148 to 153 referred of assessment or reassessment the Assessing Officer may assess of any issue, which has escap s to his notice subsequently in his section, irrespective of the f have not been complied with". escaped assessment:- nt, reassessment or recomputat the provisions of section 148A, he assessee a notice, along wit uired, under clause (d) of sect hin such period, as may be specif ncome or the income of any ot ssessable under this Act during he relevant assessment year, in the prescribed manner and sett y be prescribed; and the provisi apply accordingly as if such ret hed under section 139: section shall be issued unless th g Officer which suggests that d to or s or ped the fact tion the th a tion fied ther the the ting ions turn here the TRIPTI SAINI 2025.05.07 13:26 I attest to the accuracy and integrity of this document CWP-10888-20 inc ass has not Exp info cha (i) ass form (ii) of I the the Exp (i) doc afte (ii) sec of A (iii) Pri jew 025(O&M) come chargeable to tax has esca sessee for the relevant assessme s obtained prior approval of th tice. planation 1.-For the purposes of formation with the Assessing Offi argeable to tax has escaped asse any information flagged in the c sessment year in accordance w mulated by the Board from time any final objection raised by the India to the effect that the assess e relevant assessment year has n e provisions of this Act. planation 2.-For the purposes of a search is initiated under secti cuments or any assets are requi er the 1st day of April, 2021, in t a survey is conducted under se ction (2A) or sub-section (5) of t April, 2021, in the case of the ass ) the Assessing Officer is satisf incipal Commissioner or Comm wellery or other valuable article -14- aped assessment in the case of ent year and the Assessing Offi e specified authority to issue su f this section and section 148A, ficer which suggests that the inco essment means- case of the assessee for the relev with the risk management strat to time; e Comptroller and Auditor-Gene sment in the case of the assessee not been made in accordance w f this section, where- ion 132 or books of account, ot isitioned under section 132A, on the case of the assessee; or ection 133A, other than under s that section, on or after the 1st d sessee; or fied, with the prior approval of missioner, that any money, bulli e or thing, seized or requisition the ficer uch the ome vant tegy eral for with ther n or sub- day f the ion, ned TRIPTI SAINI 2025.05.07 13:26 I attest to the accuracy and integrity of this document CWP-10888-20 und on (iv) Pri or 132 202 rela info esc ass to acc con oth seiz Exp mea Con und "14 sec 025(O&M) der section 132 or under section or after the 1st day of April, 202 ) the Assessing Officer is sati incipal Commissioner or Comm documents, seized or requisitio 2A in case of any other person 21, pertains or pertain to, or a ate to, the assessee, the Assessin formation which suggests that t caped assessment in the case sessment years immediately prec the previous year in which th count, other documents or any a nducted in the case of the assess her valuable article or thing or b zed or requisitioned in case of an planation 3.-For the purposes ans the specified authority referr nducting inquiry, providing op der section 148 – 48A. The Assessing Officer sha ction 148- -15- n 132A in case of any other per 21, belongs to the assessee; or isfied, with the prior approval issioner, that any books of acco oned under section 132 or sect n on or after the 1st day of Ap any information contained there ng Officer shall be deemed to h the income chargeable to tax e of the assessee for the th ceding the assessment year relev he search is initiated or books assets are requisitioned or survey see or money, bullion, jewellery books of account or documents ny other person. of this section, specified autho red to in section 151." pportunity before issue of no ll, before issuing any notice un rson l of ount tion pril, ein, ave has hree vant s of y is y or are rity tice nder TRIPTI SAINI 2025.05.07 13:26 I attest to the accuracy and integrity of this document CWP-10888-20 (a) spe tha (b) prio sho not dat by und wh in con (c) sho (d) rep und spe wh no mo per 025(O&M) conduct any enquiry, if requ ecified authority, with respect t at the income chargeable to tax h provide an opportunity of bein or approval of specified authori ow cause within such time, as m t less than seven days and but n te on which such notice is issued him on the basis of an applicatio der section 148 should not be i ich suggests that income charge his case for the relevant asses nducted, if any, as per clause (a) consider the reply of assessee f ow-cause notice referred to in cla decide, on the basis of mater ply of the assessee, whether or n der section 148, by passing an ecified authority, within one mo ich the reply referred to in clau such reply is furnished, within nth in which time or extended r clause (b) expires: -16- uired, with the prior approval to the information which sugge has escaped assessment; ng heard to the assessee, with ity, by serving upon him a notice may be specified in the notice, be not exceeding thirty days from d, or such time, as may be extend on in this behalf, as to why a no issued on the basis of informat eable to tax has escaped assessm ssment year and results of enqu ; furnished, if any, in response to ause (b); rial available on record includ not it is a fit case to issue a no order, with the prior approval onth from the end of the month use (c) is received by him, or wh n one month from the end of time allowed to furnish a reply l of ests the e to eing the ded tice tion ment uiry the ding tice l of h in here the y as TRIPTI SAINI 2025.05.07 13:26 I attest to the accuracy and integrity of this document CWP-10888-20 Pro whe (a) doc cas (b) Pri jew sec oth ass (c) Pri or und of A the Exp mea Tim "1 ass (a) yea 025(O&M) ovided that the provisions of thi ere- a search is initiated under sect cuments or any assets are requi se of the assessee on or after the the Assessing Officer is satisfi incipal Commissioner or Comm wellery or other valuable article ction 132 or requisitioned under her person on or after the 1st d sessee; or the Assessing Officer is satisfi incipal Commissioner or Comm documents, seized in a search u der section 132A, in case of any April, 2021, pertains or pertain erein, relate to, the assessee. planation.-For the purposes of ans the specified authority referr me limit for notice – 149. (1) No notice under section sessment year- if three years have elapsed from ar, unless the case falls under cla -17- is section shall not apply in a c tion 132 or books of account, ot isitioned under section 132A in 1st day of April, 2021; or fied, with the prior approval of missioner that any money, bulli e or thing, seized in a search un r section 132A, in the case of a day of April, 2021, belongs to ied, with the prior approval of missioner that any books of acco under section 132 or requisition other person on or after the 1st d n to, or any information contain f this section, specified autho red to in section 151." 148 shall be issued for the relev m the end of the relevant assessm ause (b); case ther the the ion, nder any the the ount ned day ned rity vant ment TRIPTI SAINI 2025.05.07 13:26 I attest to the accuracy and integrity of this document CWP-10888-20 (b) end in wh form am Pro in a day tim pro imm Pro in a wit init any of M Pro lim ass 148 is s 025(O&M) if three years, but not more tha d of the relevant assessment yea his possession books of accoun ich reveal that the income cha m of asset, which has escaped as ount to fifty lakh rupees or more ovided that no notice under sect a case for the relevant assessme y of April, 2021, if such notice me on account of being beyond ovisions of clause (b) of sub-sect mediately before the commencem ovided further that the provision a case, where a notice under se th section 153A, is required to tiated under section 132 or boo y assets requisitioned under sect March, 2021: ovided also that for the purp mitation as per this section, the ti sessee, as per show-cause notice 8A or the period during which t stayed by an order or injunction -18- an ten years, have elapsed from ar unless the Assessing Officer nt or other documents or evide argeable to tax, represented in ssessment amounts to or is likely e for that year: tion 148 shall be issued at any t ent year beginning on or before could not have been issued at t the time limit specified under ion (1) of this section, as they sto ment of the Finance Act, 2021: ns of this sub-section shall not ap ection 153A, or section 153C r be issued in relation to a sea oks of account, other documents tion 132A, on or before the 31st d poses of computing the period ime or extended time allowed to e issued under clause (b) of sect the proceeding under section 14 of any court, shall be excluded: the has ence the y to ime 1st that the ood pply ead arch s or day d of the tion 48A TRIPTI SAINI 2025.05.07 13:26 I attest to the accuracy and integrity of this document CWP-10888-20 Pro refe lim und rem lim acc Exp sha sha (2) sub San "15 148 (i) P Dir end (ii) whe Gen yea 9. De 1961, by the F 025(O&M) ovided also that where immediat ferred to in the immediately p mitation available to the Assess der clause (d) of section 148 maining period shall be extende mitation under this sub-section cordingly. planation.-For the purposes of c all include immovable property ares and securities, loans and ad The provisions of sub-section ( bject to the provisions of section nction for issue of notice- 51. Specified authority for the p 8A shall be- Principal Commissioner or Prin rector, if three years or less than d of the relevant assessment year Principal Chief Commissioner ere there is no Principal Chief C neral, Chief Commissioner or D ars have elapsed from the end of spite the substituted Sections 1 Finance Act, 2021 which came -19- tely after the exclusion of the per preceding proviso, the period sing Officer for passing an or 8A is less than seven days, s ed to seven days and the period shall be deemed to be extend clause (b) of this subsection, "ass y, being land or building or bo dvances, deposits in bank accoun (1) as to the issue of notice shall 151.' purposes of section 148 and sect ncipal Director or Commissioner n three years have elapsed from r; r or Principal Director General Commissioner or Principal Direc Director General, if more than th f the relevant assessment year." 47 to 151 of the Income Tax A e into force on 01.04.2021 m riod d of rder uch d of ded set" oth, nt. l be tion r or the l or ctor hree Act, any TRIPTI SAINI 2025.05.07 13:26 I attest to the accuracy and integrity of this document CWP-10888-20 reassessment no to the assessees which were assa High Courts qu Tax Act, 1961. Courts setting a Income Tax Act Finance Act, 20 and Others Vs. Court partly allo the judgment of Aggarwal [2022 “5. on lea beh 6. I the refo rea 151 rea gav inte 025(O&M) otices under Section 148 of the I after coming into force of Finan ailed before different High Cou uashed the reassessment notices Union of India challenged the j aside reassessment notices und t, which were issued after 01.04. 021 before the Hon’ble Supreme Ashish Aggarwal [2022] SCC O owed the appeals filed by the U f Hon’ble Supreme Court in Uni 2] SCC Online SC 543 is reprodu We have heard Shri N. Venk behalf of the Revenue and Shri C rned Senior Advocates and oth half of the respective assessee. It cannot be disputed that by su e Income Tax Act (IT Act) by th formative changes are made assessment proceedings. Amende 1 of the IT Act prescribe the assessment proceedings. Howev ve rise to numerous litigations a er alia, on the grounds such as -20- Income Tax Act, 1961 were issu nce Act, 2021 i.e. after 01.04.20 urts on different grounds. Differ s under Section 148 of the Inco judgments passed by different H der Section 148 of the unamen .2021 i.e. after coming into force e Court of India in Union of In Online SC 543 . Hon’ble Supre Union of India. Relevant portion ion of India and Others Vs. Ash uced as under:- kataraman, learned ASG appear C.A. Sundaram and Shri S. Gane her learned counsel appearing bstitution of sections 147 to 151 he Finance Act, 2021, radical a e governing the procedure ed sections 147 to 149 and sect procedure governing initiation ver, for several reasons, the sa and the reopening were challeng (1) no valid "reason to believe" ued 021, rent ome High ded e of ndia eme n of hish ring esh, on 1 of and for tion n of ame ged (2) TRIPTI SAINI 2025.05.07 13:26 I attest to the accuracy and integrity of this document CWP-10888-20 no ass esc offi cha pro (In not 6.1 a m yea Par tax wit sec 6.2 202 foll Alo offi of t the the 025(O&M) tangible/reliable material/inf sessing officer leading to form caped assessment, (3) no enquiry ficer prior to the issuance of n ange of opinion of the assessing ocedure laid down by this Cour ndia) Ltd. v. Income Tax Office t been followed. Further pre-Finance Act, 2021, maximum period up to six years ars leading to uncertainty for rliament thought it fit to amend x administration, ease complianc th a view to achieve the said ctions 147 to 149 and section 151 2 Under the substituted provisio 21, no notice under section 148 lowing the procedure prescribed ong with the notice under sectio ficer (AO) is required to serve th the IT Act. section 148A of the IT e nature of a condition preceden e IT Act can thus be said to be -21- formation in possession of mation of belief that income y being conducted by the assess notice; and reopening is based officer and (4) lastly the mandat rt in the case of GKN Drivesha er and ors; (2003) 1 SCC 72, , the reopening was permissible and in some cases beyond even r a considerable time. Therefo the Income Tax Act to simplify ces and reduce litigation. Therefo object, by the Finance Act, 20 1 have been substituted. ons of the IT Act vide Finance A of the IT Act can be issued with d under section 148A of the IT A on 148 of the IT Act, the assess he order passed under section 14 T Act is a new provision which is nt. Introduction of section 148A e a game changer with an aim the has sing on tory afts has for six fore, the fore, 021, Act, hout Act. sing 48A s in A of m to TRIPTI SAINI 2025.05.07 13:26 I attest to the accuracy and integrity of this document CWP-10888-20 ach com 6.3 ass opp req of G 6.4 stre und if r the esc ass the cau ma whe IT A tim 6.5 148 spe 025(O&M) hieve the ultimate object of simp mpliance and reduce litigation. 3 But prior to pre-Finance sessment, the procedure of giving portunity to the assessee and th quired to be followed as per the GKN Driveshafts (India) Ltd. (su 4 However, by way of section 1 eamlined and simplified. It prov der section 148, the assessing off required, with the approval of s e information which suggests tha caped assessment; (ii) provide an sessee, with the prior approval o e reply of the assessee furnished use notice referred to in clause ( terial available on record incl ether or not it is a fit case to issu Act and (v) the AO is required me stipulated. 5 Therefore, all safeguards are p 8 of the IT Act is issued. At eve ecified authority is required, eve -22- plifying the tax administration, e Act, 2021, while reopening g the reasons for reopening and he decision of the objectives w judgment of this Court in the c upra). 148A, the procedure has now b vides that before issuing any no fficer shall (i) conduct any enqu specified authority, with respec at the income chargeable to tax n opportunity of being heard to of specified authority; (iii) consi d, if any, in response to the sho (b); and (iv) decide, on the basis luding reply of the assessee, as ue a notice under section 148 of to pass a specific order within rovided before notice under sect ery stage, the prior approval of n for conducting the enquiry as p ease an d an were case een tice uiry, t to has the ider ow- s of s to f the the tion f the per TRIPTI SAINI 2025.05.07 13:26 I attest to the accuracy and integrity of this document CWP-10888-20 sec opi opp con any enq prio info esc 6.6 for sec issu ten abs 7. bei spe ass resp pro rela 025(O&M) ction 148A(a). Only in a case wh inion that before any notice is is portunity is to be given to the a nducting any enquiry, the assess y enquiry. Thus if the assessing quiry is required, the assessing o or approval of the specified formation which suggests that t caped assessment. 6 Substituted section 149 is the issuance of notice under section ction 149 of the IT Act has redu uance of such a notice to three y years. It also provides further sent under the earlier regime pre Thus, the new provisions subs ing remedial and benevolent i ecific aim and object to prote sessee as well as and the sa pective High Courts have righ ovisions shall be made available ating to past assessment years, -23- here, the assessing officer is of ssued under section 148A(b) and assessee, there is a requiremen sing officer may do so and cond g officer is of the opinion that a officer can do so, however, with d authority, with respect to the income chargeable to tax provision governing the time li n 148 of the IT Act. The substitu uced the permissible time limit years and only in exceptional ca additional safeguards which w e-Finance Act, 2021. stituted by the Finance Act, 20 in nature and substituted with ect the rights and interest of ame being in public interest, htly held that the benefit of n e even in respect of the proceedi , provided section 148 notice f the d an t of duct any the the has imit uted for ases were 021 h a the the new ings has TRIPTI SAINI 2025.05.07 13:26 I attest to the accuracy and integrity of this document CWP-10888-20 bee wit 8. Cou sam sub ma pro mis not 148 una issu the the the bon The tha ins und hav Act issu 025(O&M) en issued on or after 1st April, 2 th the view taken by the various H However, at the same time, th urts would result in no reassess me are permissible under the bstituted sections 147 to 151 of de remediless and the objec oceedings cannot be frustrated. stake and in view of subseque tifications, the Revenue issued t 8 after the amendment was enfo amended section 148. In our vie ued under the unamended Act an e substituted provisions of sectio e Finance Act, 2021. There appea e amendments as the officers of t nafide belief that the amendmen erefore, we are of the opinion th at regard which the High Cour tead of quashing and setting asi der the unamended provision of ve passed an order construing th t/unamended provision of the IT ued under section 148A of the -24- 021. We are in complete agreem High Courts in holding so. he judgments of the several H ment proceedings at all, even if Finance Act, 2021 and as p the IT Act. The Revenue cannot ct and purpose of reassessm It is true that due to a bonaf ent extension of time vide vari the impugned notices under sect forced w.e.f. 01.04.2021, under ew the same ought not to have b nd ought to have been issued un ons 147 to 151 of the IT Act as p ars to be genuine nonapplication the Revenue may have been unde nts may not yet have been enforc hat some leeway must be shown rts could have done so. Therefo ide the reassessment notices iss f IT Act, the High Courts ough he notices issued under unamend T Act as those deemed to have b e IT Act as per the new provis ment High f the per t be ment fide ious tion the een nder per n of er a ced. n in fore, ued t to ded been sion TRIPTI SAINI 2025.05.07 13:26 I attest to the accuracy and integrity of this document CWP-10888-20 sec pro sub Fin req ass IT A in pas 025(O&M) ction 148A and the Revenue o oceed further with the reasse bstituted provisions of sections 1 nance Act, 2021, subject to c quirements and the defences, sessee under the substituted prov Act and which may be available law. Therefore, we propose to ssed by the respective High Cour (i) The respective impugned respective assessees shall be section 148A of the IT Act 2021 and treated to be show 148A(b). The respective ass days from today provide to material relied upon by the reply to the notices within tw (ii) The requirement of cond approval of the specified au dispensed with as a one-tim which have been issued und Act from 01.04.2021 till date quashed by the High Courts; -25- ought to have been permitted essment proceedings as per 147 to 151 of the IT Act as per compliance of all the procedu which may be available to visions of sections 147 to 151 of e under the Finance Act, 2021 a modify the judgments and ord rts as under: - d section 148 notices issued to e deemed to have been issued un as substituted by the Finance A w-cause notices in terms of sect sessing officers shall within th the assessees the information a Revenue so that the assessees wo weeks thereafter; ducting any enquiry with the pr uthority under section 148A(a) me measure vis-a-vis those noti der Section 148 of the unamend e, including those which have b ; d to the the ural the f the and ders the nder Act, tion irty and can rior be ices ded een TRIPTI SAINI 2025.05.07 13:26 I attest to the accuracy and integrity of this document CWP-10888-20 9. lea Sen resp ord Rev bel suc exc the 025(O&M) (iii) The assessing officers terms of section 148A(d) aft required under section 14 concerned assessees; (iv) All the defences which under section 149 and/or w Finance Act, 2021 and in law to the Assessing Officer und open and/or shall continue to (v) The present order s judgments and orders pass quashing the similar notices 148 of the IT Act irrespe assailed before this Court or There is a broad consensus on rned ASG appearing on behalf nior Advocates/learned counse pective assessees. We are also der is passed, it will strike a b venue as well as the respective lief of the officers of the Revenu ch notices, the Revenue may not chequer which would suffer. Th e present order with a view avoid -26-