Initiation of the Reassessment proceedings under the new mechanism

Rajiv Kumar, Ruchesh Sinha & Anmol Batra – [2022] 137 taxmann.com 42 (Article)

The financial year 2021-2022 has been ended, finding a judicial favour from various courts in terms that the reassessment notices issued U/s 148 of the Income Tax Act, 1961 (Act), which were issued after 1st April 2021 to 30th June 2021 for the A.Y. 2013-14, 2014-15, 2015-16, 2016-17 & 2017-18 has been quashed.

While quashing the reassessment notices, many of the Hon’ble Courts have given the liberty to the department to act in ‘accordance with law’. For instance, the Hon’ble Delhi High Court in the case of Mon Mohan Kohli v. Asstt. CIT [2021] 133 taxmann.com 166 (Delhi) has observed that “If the law permits the respondents/revenue to take further steps in the matter, they shall be at liberty to do so. Needless to state that if and when such steps are taken and if the petitioners have a grievance, they shall be at liberty to take their remedies in accordance with law”.

Be that as it may, now the provisions of section 148A are applicable w.e.f 1st April 2021, and hence the issuance of notice U/s 148 of the Act is subject to the said provisions. Thus in the present article, the discussion is made on the said section and section 149 of the Act.

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