Case Law Details
New India Assurance Company Limited Vs ACIT (Bombay High Court)
Introduction: The Bombay High Court recently delivered a significant judgment in the case of New India Assurance Company Limited Vs ACIT, reshaping the landscape of tax law. The court, in its meticulous analysis, quashed notices for the Assessment Year (AY) 2013-14 issued post 31st March 2021 and declared the Taxation Laws (Amendment) Act, 2021 (TOLA) as not applicable. This landmark ruling underscores the importance of understanding the legal landscape at the time of notice issuance and upholds the principle of finality in legal proceedings.
Understanding the Notable Propositions:
1. Validity Based on Law at the Time of Notice: The court set the tone by emphasizing that the validity of a notice under Section 148 must be evaluated based on the legal framework existing on the date of issuance. This approach aligns with precedents, notably Siemens Financial and Tata Communications.
2. Impact of Ashish Agarwal Case: The court delved into the implications of the Ashish Agarwal case, asserting that it did not disturb earlier findings. Instead, it directed Assessing Officers to adhere to the procedure under Section 148A. Crucially, the court asserted that TOLA has no application to notices issued after 31st March 2021.
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