Tata Communications Transformation Services Limited Vs ACIT (Bombay High Court)
Summary: The Bombay High Court considered a batch of writ petitions, including Writ Petition No. 1334 of 2021 filed by Tata Communications Transformation Services Limited, challenging reassessment proceedings initiated under Section 148 of the Income-tax Act, 1961 after 1 April 2021 by relying upon the provisions as they stood before that date. The petitions raised common questions concerning the interaction between the Finance Act, 2021, which substantially substituted the reassessment provisions with effect from 1 April 2021, and the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020, together with CBDT Notifications Nos. 20/2021 dated 31 March 2021 and 38/2021 dated 27 April 2021.
The Court noted that, prior to 1 April 2021, Sections 147, 148, 149 and 151 contained the earlier reassessment regime, including the requirement of a reason to believe, prescribed limitation periods and specified sanction requirements. The Finance Act, 2021 substituted Sections 147, 148, 149 and 151 and introduced Section 148A with effect from 1 April 2021. Under the new regime, before issuing a notice under Section 148, the Assessing Officer is required, subject to the statutory exceptions, to conduct the prescribed enquiry where necessary, provide the assessee an opportunity of being heard, consider the assessee’s response and decide whether the case is fit for issuance of notice.
