The article is written by CA Deepak Gadgil, who is into direct and indirect tax litigation and advisory from past 10 years. The article discusses the important points & dates for consideration after Supreme Court’s decision in case of UOI Versus Rajeev Bansal.
Table of Contents
Assessment Year for which FIRST notice Under Section 148 is issued
Date of issue of First Notice under section 148 of the Income Tax Act, 1961 – before 31.03.2021, between 01.04.2021 to 30.06.2021 or between 01.07.2021 to 31.03.2024.
Applicability of TOLA
TOLA has application ONLY IF the proceedings specified falls for completion between 20.03.2020 to 31.03.2021.
After Supreme Court’s Judgement in case of Ashish Agarwal – delivered on 04.05.2022, fresh notice u/s 148A(b) with material relied upon has to be issued on or before 03.06.2022.
Important Dates After Rajeev Bansal Case
Check out the date of expected response mentioned in notice under section 148A(b), including extension sought by assessee & allowed by AO & also date on which reply is actually submitted by assessee which are as follows:
Ascertain amount of escapement as alleged by AO from notice u/s 148A(b) to check whether gets covered u/s 149(1)(i) or 149(1)(ii) as amended by FA 2021 –
Thereafter check applicability of first proviso to section 149(1) with one more additional point in mind – if the case on hand gets covered u/s 149(1)(i) as amended by FA 2021 then apply 4 years test & if the case on hand gets covered u/s 149(1)(ii) then apply 6 years test as per the first proviso
Keep in mind that for AY 2013-14 & 2014-15 – when 6 year test is applied, the crucial dates i.e. 31.03.2020 or 31.03.2021 are affected by TOLA and in such case time for issue of 148 notice gets extended till 30.06.2021
For AY 2015-16 in cases where alleged escapement is below Rs 50 lacs, then that case falls u/s 149(1)(i) as amended by FA 2021 & last date for issue of notice is 31.03.2019 – 3 years criteria & hence is time barred & will not get benefit of TOLA – the same has also been conceded by Government Pleader as per para 19(f) of the judgement.
Benefit of TOLA will also be available for section 151
Benefit of TOLA will also be available for section 151, which deals with Specified Authority for obtaining Approval / Sanction for the case, therefore for AY 2016-17 & 2017-18 where the initial 3 years period as per amended section 149(1)(i) ends on 31.03.2020 & 31.03.2021, sanctions / approvals taken on or before 30.06.2021 under section 151 as per OLD provisions of section 151 will be valid.
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