Reassessment proceedings initiated by notice under Section 148 are invalid if the notice is effectively issued on or after April 1, 2021, without following the Section 148A procedure, or if the escaped income is below the Rs 50 lakh threshold mandated by CBDT Instruction No. 1/2022.

आदेश /O R D E R

PER M. BALAGANESH, AM :

This appeal by the assessee is filed against the order of the learned Commissioner of Income Tax (Appeal), NFAC, Delhi, (in short Ld.CIT(A) for the assessment year 2014-15, vide order dated 12.07.2024.

2. The assessee had filed concise grounds of appeal before us. The Ground Nos. 1,8,9 & 10 raised by the assessee are general in nature and does not require any specific adjudication.

3. The Ground Nos. 2,3,4 & 5 raised by the assessee are challenging the validity of assumption of jurisdiction under section 147 of the Act on various facets. Since this is a preliminary issue and goes to the root of the matter, we deem it fit and appropriate to address the same first.

4. We have heard the rival submissions and perused the materials available on record. The assessee is an individual and managing partner of M/s. Antony Muthu Udayar & Co. The return of income for the assessment year 2014-15 on 13.11.2014 determining declaring total income of Rs 4,97,210/-. This return was duly processed under section 143(1) of the Act on 24.02.2015. The case was selected for complete scrutiny and accordingly assessment under section 143(3) of the Act was completed on 13.06.2016 determining total income at Rs.5,97,210/-. Subsequently, the AO noticed that the assessee had failed to disclose the savings bank account maintained at Syndicate Bank and the closing balance of Rs.32,47,512/- was not admitted in the balance sheet as on 31.03.2014. Hence, the entire amount of Rs.32,47,512/- being the closing balance in the savings bank account to be treated as undisclosed investment u/s.69 of the Act. As the assessee had not admitted the investment in the return of income filed for assessment year 2014-15, the Learned AO had reason to believe that income of the assessee had escaped assessment within the meaning of section 147 of the Act and issued notice under section 148 of the Act dated 31.03.2021. In response to the notice under section 148 of the Act issued to the assessee, the assessee filed a return of income on 16.04.2021 declaring total income of Rs.4,97,020/-. However, the assessee has not made any request for providing the reason for reopening. Therefore, the Learned AO issued statutory notices sought for furnishing the details called for. In response to the above, the assessee did not file the required details on or before 25.01.2022, but filed the objection for reopening on 25.01.2022. Thereafter, the assessee had filed additional objections on 01.02.2022. During the assessment proceedings, the Learned AO asked to furnish the copy of Savings bank maintained at Syndicate Bank (now Canara Bank), but the assessee failed to furnish the details called for. The Learned AO completed the assessment by making an addition of Rs 2,03,20,293/- treated as unexplained money u/s.69A r.w.s 115BBE of the Act and concluded the assessment on 04.07.2022 u/s. 147 of the Act on the basis of material available on the record.

5. The short point that arises for our consideration is as to whether the notice under section 148 of the Act dated 31-3-2021 was issued to the assessee on 31-3-2021 or on 1-4-2021 and accordingly whether the new provisions of section 148A of the Act would get kicked in or not in the facts and circumstances of the instant case. In the instant case the notice under section 148 of the Act was dated 31-3-2021. The claim of the assessee is that the same was issued by the Learned AO on 1-4-2021 as per the screenshot reflected in the ITBA Portal. On the contrary, the revenue’s case is that the said notice was issued to the assessee and dis