ST ISAAC Welfare Society Vs ITO (Telangana High Court)
Telangana High Court Quashes Reassessment Notices Under Sections 148A and 148 Following Earlier Precedent
In a significant ruling concerning income tax reassessment proceedings, the Telangana High Court set aside notices issued under Sections 148A and 148 of the Income-tax Act, 1961, along with consequential proceedings, by following its earlier landmark judgment in Kankanala Ravindra Reddy vs Income Tax Officer.
The Court reiterated that reassessment proceedings initiated contrary to the scheme introduced under the Finance Acts of 2020 and 2021 are unsustainable and liable to be quashed. However, the relief granted remains subject to the outcome of pending Special Leave Petitions before the Supreme Court.
Introduction
The Telangana High Court dealt with a large batch of writ petitions involving challenges to reassessment proceedings initiated by the Income Tax Department under Sections 148A and 148 of the Income-tax Act.
The petitioners contended that the reassessment notices were issued in violation of the statutory framework introduced through the Finance Act, 2021 and were therefore without jurisdiction.
Since the issues raised were identical to those already decided in Kankanala Ravindra Reddy vs Income Tax Officer, the Court disposed of the batch by applying the same principles and granting similar relief.
