Reassessment notices issued under the old regime between April 1, 2021, and June 30, 2021, are treated as show-cause notices under section 148A(b) of the new regime. Limitation periods for subsequent reassessment notices must be calculated by excluding the duration of the court-mandated stay period and applying TOLA extensions.

O R D E R

1.In this Writ Petition, the Petitioner has challenged the Notice dated 29.07.2022 issued by the under Section 148 of the Act under the new regime and the Order dated 29.07.2022 passed by the respondents under Section 148A(d) of the Act under the regime for the Assessment Year 2017-2018.

2. The Petitioner had not filed a Return of Income for the Assessment Year 2017-2018. Earlier, Notice under Section 148 of the Act under the old regime as in force from 31.03.2021 was issued by the Respondent on 05.04.2021 to the Petitioner for the Assessment Year 2017-2018, which has culminated in the impugned proceedings pursuant to the amendment to the Income Tax Act, 1961 with effect from 01.04.2021.

3. Heard M/s Hema Muralikrishnan, learned counsel for the Petitioner and Mr.Ramasamy, learned Senior Standing Counsel for the Respondents.

4. Have perused the documents and the list of dates and events qua Paragraph No.28 from the decision of the Hon’ble Supreme Court in Union of India Vs. Ashish Agarwal , (2023) 1 SCC 617 and Paragraph Nos.112 and 114 from the decision of the Hon’ble Supreme Court in Union of India Vs. Rajeev Bansal , 2024 SCC Online SC 2993.

5. It will therefore be useful to refer to passage from Paragraph No.28 from Ashish Agarwal case (cited supra) and Paragraph Nos.112 and 114 from Rajeev Bansal case (cited supra).

6. For the sake of clarity, Paragraph No.28 from Ashish Agarwal case (cited supra) is reproduced below:-

“28. In view of the above and for the reasons stated above, the present Appeals are allowed in part. The impugned common judgments and orders passed by the High Court of Judicature at Allahabad in W.T. No. 524/2021 and other allied tax appeals/petitions, is/are hereby modified and substituted as under:

(i) The impugned section 148 notices issued to the respective assessees which were issued under unamended section 148 of the IT Act, which were the subject matter of writ petitions before the various respective High Courts shall be deemed to have been issued under section 148A of the IT Act as substituted by the Finance Act, 2021 and construed or treated to be show cause notices in terms of section 148A(b). The assessing officer shall, within thirty days from today provide to the respective assessees information and material relied upon by the Revenue, so that the assessees can reply to the show cause notices within two weeks thereafter

(ii) The requirement of conducting any enquiry, if required, with the prior approval of specified authority under section 148A(a) is hereby dispensed with as a onetime measure visàvis those notices which have been issued under section 148 of the unamended Act from 01.04.2021 till date, including those which have been quashed by the High Courts. Even otherwise as observed hereinabove holding any enquiry with the prior approval of specified authority is not mandatory but it is for the concerned Assessing Officers to hold any enquiry, if required;

(iii) The assessing officers shall thereafter pass orders in terms of section 148A(d) in respect of each of the concerned assessees; Thereafter after following the procedure as required under section 148A may issue notice under section 148 (as substituted)

(iv) All defences which may be available to the assesses including those available under section 149 of the IT Act and all rights and contentions which may be available to the concerned asses