TMI Blog2024 (3) TMI 888X X X X Extracts X X X X X X X X Extracts X X X X ..... pre-amended Section 149 (1)(b) becomes applicable and the time limit prescribed therein was four years and not more than six years. Whether the application of the proviso to Section 149 has the effect of incorporating by reference pre-amended Section 151? - In order to substantiate the contention that pre-amended Section 151 gets incorporated by reference, learned standing counsel relied on sub-section 2 to the pre-amended Section 149. It should be noticed that the proviso to sub-section (1) of the amended Section 149 does not even incorporate the whole of pre-amended Section 149. It merely makes the time limit prescribed therein applicable to the issuance of notices for reassessment in respect of any assessment year beginning before 01.04.2021. A fortiori the proviso certainly does not incorporate pre-amended Section 151 by reference and make it applicable. Impact of the TOLA - Undoubtedly, TOLA extended the time limits under specified enactments, including the I-T Act. As per clause (a)(ii) of sub-section(1) of Section 3 thereof, time limits for grant of sanction or approval were also extended. Since the petitioner does not challenge the sanction with respect to the time limit, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 64 (SC) 2022 such notices were directed to be deemed as notices under Section 148A(d) of the amended I-T Act. In response, the petitioner submitted a reply to such notice in respect of each assessment year. Thereafter, orders under Section 148A(d) of the I-T Act were issued in July 2022. On the same day, notices under Section 148 of the amended I-T Act were issued. Draft assessment orders under Section 144B were issued thereafter and these four writ petitions were filed in the said facts and circumstances. 3. Learned counsel for the petitioner challenges the impugned orders and notices largely on the ground that approval of the specified authority in terms of Section 151 of the I-T Act was not obtained. By referring to Section 151, learned counsel points out that Section 151 provides for different specified authorities depending on the amount of time that has lapsed from the end of the relevant assessment year. As regards assessment years 2016-2017 and 2017-2018, which are relevant for the present purpose, he submits that clause (ii) of Section 151 is applicable and, in terms thereof, the specified authorities are the Principal Chief Commissioner or Principal Director General or C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and notice under Section 148 were not valid. 5. As regards the applicability and impact of the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (TOLA), he submitted that the limited impact of the said enactment was to extend the time limit for completion of proceedings, issuance of orders, sanctions or approvals up to 31.03.2021. According to learned counsel, even assuming without admitting that TOLA is applicable, its applicability would have no impact on the specified authority for grant of sanction for proceedings initiated under Section 148. 6. Mr. D. Prabhu Mukunth Arun Kumar, learned standing counsel, made submissions in response and to the contrary. He pointed out that Sections 147, 148, 149 and 151 constitute an interconnected package of provisions, which cannot be interpreted in isolation. By referring to unamended Section 147, he pointed out that the proviso thereto fixes four years as the threshold for unconditional reassessment. Upon expiry of the four year period, he pointed out that reassessment proceedings cannot be initiated unless the conditions specified in such proviso are satisfied. After referring to pre-amended Section 148, h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is by relying on Section 151 of the I-T Act. Therefore, I begin by setting out amended Section 151 which is as under: 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 years have elapsed from the end of the relevant assessment year; (ii) Principal Chief Commissioner or Principal Director General or Chief Commissioner or Director General, if more than three years have elapsed from the end of the relevant assessment year: [Provided that the period of three years for the purposes of clause (i) shall be computed after taking into account the period of limitation as excluded by the third or fourth or fifth provisos or extended by the sixth proviso to sub-section (1) of section 149.] The undisputed factual position in this case is that the amendments to relevant provisions, such as Sections 148, 148A, 149 and 151, were effected by the Finance Act 2021 with effect from 01.04.2021. The order under Section 148A(d) was issued, thereafter, on 28.07.2022 with the prior approval of the Commissioner of Income Tax (Internat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ), Section 153A or 153C, as the case may be, as it stood before the commencement of the Finance Act, 2021, apply to notices under Section 148 in respect of cases pertaining to assessment years beginning on or before 01.04.2021. Since the disputes pertain to assessment years 2016-2017 and 2017-2018, the proviso undoubtedly applies to these cases. What are the implications of the application of the proviso? In my view, as a consequence of the proviso, the time limit specified in the pre-amended Section 149 (1)(b) becomes applicable and the time limit prescribed therein was four years and not more than six years. What is the corollary thereof? 13. The orders and notices are challenged herein not on the ground that the time limit under pre-amended Section 149 does not apply, but on the ground that sanction was not granted by the specified authority. Therefore, it remains to be considered as to whether the application of the proviso to Section 149 has the effect of incorporating by reference pre-amended Section 151. In order to substantiate the contention that pre-amended Section 151 gets incorporated by reference, learned standing counsel relied on sub-section 2 to the pre-amended Sect ..... X X X X Extracts X X X X X X X X Extracts X X X X
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