Proceedings for A.Y 2013-14 & 2014-15 cannot be reopened beyond 4 years even in the light of Apex Court Ashish Agarwal case if original assessments are completed:
In cases where Scrutiny assessments were made for A.Y’s 2013-14 and 2014-15 after thorough verification of facts and material on record, subject to the true and full disclosure of material facts by Assessee, the time limit for issuing reassessment notice under the old provisions gets elapsed by 4 years, as per first proviso to Sec. 147 of the Act prior to amendment made under Finance Act 2021, i.e, on 31.03.2018 and 31.03.2019 respectively, which period is anterior to COVID pandemic and thus once the limitation expires under the old law, it cannot be reactivated under the new provisions even in the light of the Hon’ble Supreme Court decision in the case of Ashish Agarwal (2022 SCC Online SC 543).
Recently the Hon’ble Telangana High Court headed by the Hon’ble Chief Justice took the cognizance of reassessment proceedings initiated under the new law after the expiry of limitation period under old law. Hon’ble High Court stayed the reassessment proceedings vide its interim order dt. 29.07.2022, which reads as under:
“ Challenge made in this writ petition is to the order dated 30.06.2022 passed by respondent No. 1 under section 148A(d) of the Income tax Act, 1961 (briefly, ‘the Act’ hereinafter), for the Assessment Year 2013-14.
Initially notice under Section 148 of the Act was issued on 29.06.2021. However, in view of the decision of the Supreme Court in Union of India v. Ashish Agarwal (2022 SCC Online SC 543), the said notice was construed to be one under Section 148A of the Act.
Petitioner submitted reply on 25.05.2022 specifically pointing out that assessment for assessment year 2013-14 was completed on 31.03.2016 under section 14393) of the Act. In that assessment proceedings all details of unsecured loan obtained by the Petitioner and genuineness of such loan were disclosed, which were examined by the assessing officer. In such a case, the concluded assessment cannot be reopened after four years, based on change of opinion.
This part of the objection was not considered by respondent no. 1 while passing the impugned order dated 30.06.2022, following which notice under section 148 of the Act has been issued.
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In the meanwhile, there shall be stay of all further proceedings pursuant to the order dt. 30.06.2022 passed by respondent No. 1 under section 148A(d) of the Act.”
pl give judgement copy
Hon’ble High Court stayed the reassessment proceedings vide its interim order dt. 29.07.2022, which reads as under: “ Challenge made in this writ petition is to the order dated 30.06.2022 passed by respondent No. 1 under section 148A(d) of the Income tax Act, 1961 (briefly, ‘the Act’ hereinafter), for the Assessment Year 2013-14.
Dear Sir, Kindly make available the above judgment/order. Kind regards, Manu
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