With the Supreme Court upholding the reassessment notices issued before the amendment to the Income Tax Act through the Finance Act, 2021, taxpayers will have a time period of two weeks to respond to the notices sent by the tax department, experts said.
With the Supreme Court upholding the reassessment notices issued before the amendment to the Income Tax Act through the Finance Act, 2021, taxpayers will have a time period of two weeks to respond to the notices sent by the tax department, experts said.
According to the top court’s judgment, the assessing officer will, within 30 days from May 4, provide the respective assesses the information and all relevant material which was relied upon to send the income tax recovery notice to them. Following the receipt of the notice, the assesses will have up to two weeks to respond to the notice, said Maneet Pal Singh, partner at READ accounting firm I.P. Pasricha & Co, said. IN APP
Around 90,000 notices were issued under the old Section 148 even after passage of Finance Act 2021. They were appealed in high courts of Delhi, Calcutta, Bombay, where the courts quashed the reassessment notices. “All such notices issued beyond the limitation period of 31st March, 2021 shall now be valid and thousands of taxpayers who had been served with a notice shall have to prepare themselves for the reassessment proceedings,” Singh said.
The ruling now also implies that all reassessment notices hereon issued under Section 148 of the Act will be deemed to have been issued under Section 148A, as amended earlier this year. Section 148 of the Income-Tax Act deals with notice in case the income chargeable to tax has READ IN APP escaped assessment for the relevant assessment year and the Assessing Officer has obtained prior approval of the specified authority to issue such notice.
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