Reassessment

Permission for reassessment cannot be sought by AO u/s 56 of UP VAT Act, 2008

Goods and Services Tax - Section 56 of the U.P. VAT Act would reveal that the section has wide power, but seeking of permission by the assessing authority for making reassessment of the dealer is not conferred under the said provision....

Time Travel in Avengers Endgame Visualised in Income Tax Act

Goods and Services Tax - Friends, all of us have seen the Hollywood block buster movie- ‘Avengers Endgame’. In the movie, the Avengers enter the Quantum Realm with the help of Pym Particles, and travel back in time, to prevent Thanos from getting the infinity stones, in order to make good the wrong, which Thanos has done in the past. […]...

Critical analysis of new reassessment provisions, SC decision & CBDT Instruction

Goods and Services Tax - Critical analysis of new reassessment provisions, Instruction No. 1/2022 dated 11th May, 2022 issued in light of Supreme Court decision regarding Section 148, Section 148A and Section 149 in the case of Union of India Vs Ashish Agarwal ...

An Appeal to Regularize Income Tax Reassessment Proceedings

Goods and Services Tax - As per Section 147 of Income Tax Act, 1961, if the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment for any assessment year, he may, subject to the provisions of sections 148 to 153, assess or reassess such income and also any other income chargeable to tax which […]...

Fresh Controversies In Reassessment- Misfortune or Misinterpretation

Goods and Services Tax - The Honourable Supreme Court has delivered his judgement in the controversies surrounding in cases of reassessment notice issued between 01.04.2021 to 31.03.2022 u/s 148 of the Income Tax Act and used power conferred under article 142 of constitution to save the revenue from humiliation to a great extent. In this decision, The Supreme Cou...

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Request to clarify on SC judgement on Section 148 notices

Goods and Services Tax - Income Tax Gazetted Officers’ Association requested CBDT to issue Clarification in respect of the judgement of Hon’ble Supreme Court in the case of Union of India Vs Ashish Agarwal ,Civil Appeal No. 3005/2022, Dated: 04/05/2022 in the matter of notices u/s 148 issued between 01-04-2021 to 30-06-2021 under the pre amended provisio...

Indiscriminate Income Tax notices without allowing reasonable time

Goods and Services Tax - In view of Indiscriminate notices by income Tax Department without allowing reasonable time it is requested to Finance Ministry and CBDT that suitable steps should be taken so that adequate time is allowed for compliance and cases are not disposed of in a hurry, without giving adequate opportunity for the taxpayer to be heard. The [&helli...

Extend Time Limit for Income Tax Assessment time barring on 31.3.2022

Goods and Services Tax - Lucknow CA Tax Practicioners Association has made a Representation to FM for Extension of Time Limit for Assessment cases time barring as on 31.3.22 under the Income Tax Act 1961 in view of Problems faced in completion of Reopened Assessment cases (letting time barred on 31st March 2022, Problems faced in completion of Assessment as [&hel...

Notices for assessment/reassessment of income of old cases

Goods and Services Tax - Under the provisions of Income-tax Act, 1961, notices for assessment/reassessment of income of old cases of more than six years from the end of the relevant assessment year can be issued only in the following exceptional situations: i. Under clause (c) of sub-section (1) of section 149 of the Act, in cases where income in […]...

Return revised to change cash balance /Income may face Scrutiny

Goods and Services Tax - It is brought to the notice of tax payers that any instance coming to the notice of Income-tax Department which reflects manipulation in the amount of income, cash-in-hand, profits etc. and fudging of accounts may necessitate scrutiny of such cases so as to ascertain the correct income of the year and may also attract penalty/prosecution ...

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Reassessment cannot be In Casual & Whimsical Manner

Manash Nandi Vs ITO (ITAT Kolkata) - Manash Nandi Vs ITO (ITAT Kolkata) We find that the AO has recorded the reasons u/s 148 of the Act in a very casual manner. We find that the AO has only reproduced in the reasons recorded the information received and hurriedly came to the conclusion that there exists escapement of income and evasion...

Change of opinion not constitutes reason to believe for Income escapement

Bhavani Gems Private Limited Vs ACIT (Bombay High Court) - Change of opinion does not constitute justification and/or reason to believe that income chargeable to tax has escaped assessment....

Reopening not allowable to disallow prior period expenses duly disclosed during original Assessment

Orange Business Services India Solutions Private Limited Vs DCIT (ITAT Delhi) - ITAT Delhi held that Reopening not allowable to disallow prior period expenses which were duly disclosed during original Assessment in Financial Statements and Tax Audit report ...

Reopening by change of opinion on facts already examined is not valid

Vapi Infrastructure and Industrial Township LLP Vs ITO (Bombay High Court) - Re-opening proposed is purely based on change of opinion and entire issue which is subject matter of reasons recorded has been raised during assessment proceedings ...

Allowing mere 8 hours to reply to SCN is neither reasonable nor effective

Rahul Biala Vs ITO (Delhi High Court) - Court is of the view that time of eight hours to file reply to the show cause notice was neither reasonable nor effective, as within this short time, the Petitioner could not have supplied relevant information and documents to substantiate his case....

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Section 148 Notices: Steps to follow in cases impacted by SC decisions

ITBA Step-by-Step Document No. 1 - (12/05/2022) - ITBA Step–by–Step Document No. 1 w.r.t. CBDT Instruction No. 1 of 2022Dated 12.05.2022 Steps to be followed in ITBA for the cases impacted by Hon’ble Supreme Court decision dated 04.05.2022 in the case of Union of India vs. Ashish Agarwal Dated 12.05.2022 NOTE: The AOs/ITBA users shoul...

CBDT Instruction on Implementing SC Judgment on Section 148 Notices

Instruction No. 01/2022 - (11/05/2022) - CBDT issues Instruction No. 01/2022 regarding Implementation of Hon. Supreme Court’s Judgment in Union of India vs. Ashish Agrawal dated 04.05.2022 Instruction No. 01/2022 | Dated: 11th May, 2022 F. No 279/Misc./M-51/2022-ITJ Ministry of Finance Department of Revenue Central Board of Direct T...

Potential cases for issue of Section 148 Notice- Central Charges Information

F.No.225/40/2021/ITA-II - (27/03/2021) - It is hereby- directed that the information received from Central Charges after 01.04.2019 may be considered as 'Potential cases', if ii has not been uploaded into VRU/CRIU functionality and is so flagged to the Jurisdictional Authorities concerned by the Central In such cases. Para 1(v) of Board's ...

Section 148- Instructions on handling of Non-PAN cases flagged by DRI

Notification No. 225/40/2021/ITA-11 - (26/03/2021) - These non-PAN cases have been pushed by Systems to respective Pr. CCIT/Pr. CIT based on address. Considering the time involved in allotting PAN in such non-PAN cases and other technical issues involved in generating notices through the system, the following instructions are being issued for handling...

Cases to be considered as Potential cases for section 148 notice

F. No.225/40/2021/ITA-II - (15/03/2021) - Following categories of cases will be considered as Potential cases' for taking action u s 148 of the Act tor the A.Y 2013-14 to A.Y. 2017-18 by 31.03.2021: i. Cases where there are Audit Objection (Revenue Internal) which reclaim action u/s 148 of the Act:...

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