CA. Brijesh Baranwal
Quick Summary
Honble Supreme Court in its order today i.e. 4th May, 2022 in the matter of UOI vs. Ashish Agarwal, reversed the decisions of the several High Courts and restored the notices issued under new provisions of income tax in reassessment matters which were applicable w.e.f. 01.04.2021. The decisions o
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FAQ :
The Supreme Court validated income tax reassessment notices issued under the new provisions applicable from 1st April 2021, reversing decisions by several High Courts.
The Supreme Court reversed decisions from the Bombay High Court, Allahabad High Court, and Delhi High Court, among others.
Section 148A outlines the procedure that Assessing Officers must follow before issuing a notice under Section 148. This includes conducting inquiries and providing the assessee an opportunity to be heard.
Generally, no notice can be issued if three years have elapsed from the end of the relevant assessment year. However, if the escaped income is in the form of an asset amounting to fifty lakh rupees or more, the limit extends to ten years.
The Supreme Court's decision specifically pertains to notices issued under the new provisions effective from 1st April 2021. Notices issued under the unamended Act before this date would be governed by the old rules.
The Supreme Court's order deems these notices as show cause notices under Section 148A, allowing the Assessing Officer to proceed by providing necessary information and material to the assessee.
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