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TMI Blog2025 (5) TMI 1182X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 148 of the Income Tax Act, 1961 [the Act] in respect of the Assessment Year [AY] 2013-14. It is the Assessee's case that the impugned notice has been issued beyond the prescribed period of limitation. 2. The initial notice under Section 148 of the Act for AY 2013-14 was issued on 30.06.2021. The said notice was unsustainable as it was issued in accordance with the statutory regime as stood prior to 31.03.2021. This court in the case of Mon Mohan Kohli v. Assistant Commissioner of Income Tax & Anr.: Neutral Citation No.: 2021:DHC:4181-DB had set aside such notices that were issued after 31.03.2021 without following the procedure as prescribed under Section 148A of the Act. Some of the other High Courts also took a similar view and str ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rovided information and material to the Assessee on 25.05.2022. The Assessee was granted two weeks' time to respond to the said notice. The Assessee responded to the notice dated 25.05.2022 by a letter dated 09.06.2022. 5. The AO passed an order under Section 148A (d) of the Act on 19.07.2022. According to the Assessee, the same was beyond the period as stipulated for issuance of notice under Section 148 of the Act. 6. In the present case, the period of six years from the end of the assessment year for issuing a notice under Section 148 of the Act expired on 31.03.2020. Thus, in terms of Section 149 of the Act, a notice under Section 148 of the Act could not be issued. However, the said period was extended by the Taxation and Other Laws ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd the period of limitation. 9. This court in Ram Balram Buildhome Pvt. Ltd. v. Income Tax Officer and Anr.: Neutral Citation No.: 2025:DHC:547-DB observed as under: - "53. As is apparent from the plain language of the fourth proviso to Section 149 (1) of the Act, it extends the period of limitation for issuing a notice under Section 148 of the Act so as to provide the AO a minimum of seven days to pass an order under Section 148A (d) of the Act. If the time available to the AO to decide whether it is a fit case for issuance of notice under Section 148 of the Act in terms of Section 148A (d) of the Act is less than seven days after excluding the period as provided under the third proviso, then the period of three years or ten years as pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as stipulated under the said Clause, that is, one month from the end of the month in which the assessee furnishes a reply to the notices issued under Section 148A (b) of the Act. As noted above, the AO is required to complete the entire procedure for issuance of notice under Section 148 of the Act within the period as prescribed under Section 149 of the Act. Plainly, if the AO is unable to complete such procedure within the period of limitation, the AO would cease to have the jurisdiction to issue such a notice. *** *** *** 65. Thus, in the facts of the present case, the last date for issuance of notice under Section 148 of the Act for AY 2013-14 under the statutory framework, as was existing prior to 01.04.2021 was 31.03.2020, that i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act. The petitioner had furnished its response to the notice under Section 148A (b) of the Act on 13.06.2022. Thus, the period of limitation began running from that date. 69. As noted above, by virtue of TOLA, the AO had period of twenty-nine days limitation left on the date of commencement of the reassessment proceedings, which began on 01.06.2021, to issue a notice under Section 148 of the Act. The said notice was required to be accompanied by an order under Section 148A (d) of the Act. Thus, the AO was required to pass an order under Section 148A (d) of the Act within the said twenty-nine days notwithstanding the time stipulated under Section 148A (d) of the Act. This period expired on 12.07.2022. 70. Since the period of limita ..... X X X X Extracts X X X X X X X X Extracts X X X X
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