Section 148 of the Income Tax Act
Section 148 of the Income Tax Act, has been amended along with the insertion of new Section 148A by the Finance Act, 2021. With this, the process of reassessment has been revised and now the Assessing Officer has to comply with the provisions of Section 148A before issuance of a notice for reassessment under Section 148.
LawWiser takes you through Section 148 of the Income Tax Act, in an explainer by Paras Nath, Partner, TR Chadha &Co LLP.
Paras shares the analysis of this provision and recent judgments on the legal validity of notice issued under Section 148 of the Income Tax Act, issued after April 01, 2021.
In accordance with the power under Section 3(1) of the Relaxation Act, the CBDT had issued notifications extending the due dates for the issuance of Notices under erstwhile Section 148 from March 31, 2021, to firstly, till 30th April 2021 and subsequently to June 30, 2021. And, on the basis of this extension, Income Tax Department has issued notices to the assessee under erstwhile Section 148 which was applicable till March 31, 2021, i.e., without adhering to the requirements of Section 148A.
With notices issued by the Income-tax Department during this extended time limit, the question arises regarding the validity of such Notices issued between April 01, 2021, to June 30, 2021, on the grounds that whether two different provisions in relation to the process of reassessment can be applicable at a time and whether the Relaxation Act gives the power to choose between two Finance Acts for issuance of Notice
On the issue of validity Paras takes us through some key cases filed before various High Courts. Watch the full video to understand the issue better.
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