K & S Fincon Pvt. Ltd. Vs ITO (ITAT Delhi)
Whether the notice issued under Section 148 dated 20.07.2022 for AY 2013–14 is barred by limitation,( Amended 148 read with TOLA)
I. Background and Chronology
The appeal concerned AY 2013–14. The material dates are
| Particulars | Date |
|---|---|
| Return filed | 26.10.2013 |
| Assessment u/s 143(3) | 14.03.2016 |
| Original notice u/s 148 (old regime) | 07.06.2021 |
| SC judgment in Ashish Agarwal | 04.05.2022 |
| Notice u/s 148A(b) | 18.05.2022 |
| Assessee reply | 02.06.2022 |
| Order u/s 148A(d) | 20.07.2022 |
| Fresh notice u/s 148 | 20.07.2022 |
The legal issue raised before the Tribunal was that the notice dated 20.07.2022 was barred by limitation under Section 149 read with TOLA and the law laid down by the Supreme Court.
II. Statutory Framework
1. Section 149 (Old Regime)
For AY 2013–14:Six years from end of relevant AY
Limitation expired on 31.03.2021
2. TOLA Extension
Under the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020:
Time for issuing notice u/s 148 extended till 30.06.2021
Thus, the notice dated 07.06.2021 under old law was within extended limitation.
III. Effect of Supreme Court Judgments
Union of India v. Ashish Agarwal (04.05.2022)
Held. Notices issued between 01.04.2021 and 30.06.2021 under old regime
Deemed to be show cause notices under Section 148A(b)
