Section 148B inserted by Finance Act 2022 – a still born provision!

Dr. Hemant O. Sharma, Hardayal Singh & Gopal C Mehta – [2022] 137 taxmann.com 385 (Article)

To reduce avoidable inaccuracies, section 148B, recently inserted by the Finance Act 2022, requires the Assessing Officer (AO for short) to obtain the “prior approval” of the Joint Commissioner of Income Tax (JCIT for short), before passing an assessment order, consequent to a search, survey or requisition.

There is no doubt that the intent behind obtaining such “prior approval” is to have some judicious inputs from JCIT, so that highhandedness which AOs are often accused of in such cases, can be eliminated.

If this objective can be achieved, such elimination may result in an order consistent with the first principles propounded by the judiciary with regard to assessments. This article however does not intend to discuss the jewels (read law) consistently reiterated by the courts, because that is not its objective. Even so, it is worthwhile to reiterate that “prior approval” by the JCIT on the lines of such first principles, could help deliver fair, just, and reasonable assessment orders. But this outcome, for reasons discussed subsequently, is a tall order indeed.

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