ORDER :

C. SARAVANAN, J.

The Petitioner is before this Court against the impugned order passed under Section 148A(d) of the Income Tax Act, 1961 and the impugned notice issued under Section 148 of the Income Tax Act, 1961, both dated 31.03.2023.

2. The impugned Order and Notice relates to the Assessment Year 2016-2017. As per the amended Section 149 of the Income Tax Act, 1961 which came into force with effect from 01.04.2021, the last date for issuance of Notice under Section 148 is 3 years or 10 years i.e., 31.03.2020 or 31.03.2027. Extended period of 10 years is available to an Assessing Officer where the income escaping assessment is likely to amount to fifty lakh rupees or more.

3. However, such a Notice under Section 148 of the Income Tax Act, 1961 can be issued under the new regime within 3 years or 10 years, as the case may be provided that the limitation prescribed under the old regime under Section 149 of the Income Tax Act, 1961, as in force on 31.03.2021, had not expired. The other requirement for invoking extended period is that Assessing Officer should be in possession books of account or other documents or evidence which reveal that the income chargeable to tax, represented in the form of—

(i) an asset;

(ii) expenditure in respect of a transaction or in relation to an event or occasion; or

(iii) an entry or entries in the books of account,

which has escaped assessment amounts to or is likely to amount to fifty lakh rupees or more. This is as per the first Proviso to Section 149 of the Income Tax Act, 1961 as in force with effect from 01.04.2021.

4. Section 149 of the Income Tax Act, 1961 as in force with effect from 01.04.2021 is reproduced below:-

“149. Time limit for notice.

(1) No notice under section 148 shall be issued for the relevant assessment year,-

(a) if three years have elapsed from the end of the relevant assessment year, unless the case falls under clause (b);

[(b) if three years, but not more than ten years, have elapsed from the end of the relevant assessment year unless the Assessing Officer has in his possession books of account or other documents or evidence which reveal that the income chargeable to tax, represented in the form of—

(i) an asset;

(ii) expenditure in respect of a transaction or in relation to an event or occasion; or

(iii) an entry or entries in the books of account, which has escaped assessment amounts to or is likely to amount to fifty lakh rupees or more:]

Provided that no notice under section 148 shall be issued at any time in a case for the relevant assessment year beginning on or before 1st day of April, 2021, if [a notice under section 148 or section 153A or section 153C could not have been issued at that time on account of being beyond the time limit specified under the provisions of clause (b) of sub-section (1) of this section or section 153A or section 153C, as the case may be], as they stood immediately before the commencement of the Finance Act, 2021:

Provided further that the provisions of this sub-section shall not apply in a case, where a notice under section 153A, or section 153C read with section 153A, is required to be issued in relation to a search initiated under section 132 or books of account, other documents or any assets requisitioned under section 132A, on or before the 31^st day of March, 2021:

Provided also that for the purposes of computing the period of limitation as per this section, the time or extended time allowed to the assessee, as per show-cause notice issued under clause (b) of section 148A or the period during which the proceeding under section 148A is stayed by an order or injunction of any court, shall be excluded:

Provided also that where immediately after the exclusion of the period referred to in the immediately preceding proviso, the period of limitation available to the Assessing Officer for passing an order under clause (d) of section 148A is less than seven days, such remaining period shall be extended to seven days and the period of limitation under