Amendment of section 148A.
45. In section 148A of the Income-tax Act,—
| (i) | in clause (b), the words \"with the prior approval of specified authority,\" shall be omitted; | |
| (ii) | in the proviso, in clause (c), for the words \"relate to, the assessee.\" the following shall be substituted, namely:— |
\"relate to, the assessee; or
(d) the Assessing Officer has received any information under the scheme notified under section 135A pertaining to income chargeable to tax escaping assessment for any assessment year in the case of the assessee.\".
","words":88,"text_source":"published"},"classification":[],"instruments":[],"judgments":[{"cnr":"SCIN010030632023","order":"order-161.pdf","title":"Union Of India vs Rajeev Bansal","court":"SC","court_name":"Supreme Court of India","date":"2024-10-03","citation":"2024 INSC 754","precedential_value":"Landmark binding precedent","court_marking":"reportable","ratio_decidendi":"The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act 2020 (TOLA) continues to apply to reassessment proceedings initiated under the Income Tax Act even after the Finance Act 2021 came into force on April 1, 2021 and substituted the reassessment regime, where any action or proceeding contemplated under the substituted provisions of the Income Tax Act falls for completion between March 20, 2020 and March 31, 2021 (or such extended date notified). The extended time limit of June 30, 2021 provided under TOLA applies to the issuance of reassessment notices under Section 148 and the grant of sanction under Section 151 of the Income Tax Act. Reassessment notices issued under the new regime must be issued within the time limit surviving under the Income Tax Act read with TOLA's relaxations. Notices issued beyond the surviving time limit are time-barred and liable to be set aside as the time limits constitute jurisdictional requirements for the assessing officer's power to reassess. The legal fiction created by the Supreme Court in the Ashish Agarwal decision, deeming old regime notices as new regime show-cause notices, carries the consequence that the balance of time available under Income Tax Act read with TOLA applies to the completion of reassessment proceedings initiated under that fiction.","applied_to_this_section":"Deletion of requirement for obtaining approval under Section 148A(b) in show-cause notice","basis":"cited","decided_under":null,"url":"https://ecourtsindia.com/cnr/SCIN010030632023/order-161"},{"cnr":"SCIN010037002023","order":"order-161.pdf","title":"Union Of India vs Rajeev Bansal","court":"SC","court_name":"Supreme Court of India","date":"2024-10-03","citation":"2024 INSC 754","precedential_value":"Binding (Supreme Court of India - declaration of law)","court_marking":"reportable","ratio_decidendi":"The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act 2020 (TOLA) continues to apply to the Income Tax Act after the Finance Act 2021 substitutes the reassessment provisions with effect from April 1, 2021. TOLA's non-obstante clause overrides the time limits specified in Section 149 of the Income Tax Act only to the extent of relaxing (extending) the time limit for issuance of reassessment notices under Section 148 and for grant of sanction under Section 151, but only for actions that fall for completion between March 20, 2020 and June 30, 2021. Section 3(1) of TOLA must be read harmoniously with the new reassessment provisions to give full effect to the legislative intention of both enactments. The first proviso to Section 149 of the new regime acts as a saving clause preventing revival of assessments that became time-barred under the old regime but does not prevent TOLA from extending time limits that fell for completion within TOLA's stipulated period. Reassessment notices issued under Section 148 of the new regime must be issued within the time limit surviving under the Income Tax Act read with TOLA. Any notice issued beyond this surviving time limit is time-barred and invalid. The legal fiction created in Ashish Agarwal (deeming old regime notices as new regime show-cause notices) has the consequence that the time during which those notices were effectively stayed (from issuance until supply of information and assessee's response) must be excluded from the limitation period under the third proviso to Section 149. The surviving time limit is calculated as the balance between the date of issuance of the old regime notice and June 30, 2021, plus the exclusions under third proviso.","applied_to_this_section":"The Finance Act 2022 deleted the requirement of obtaining sanction from specified authority under Section 148A(b) for providing opportunity of being heard, though the Court noted this deletion occurred after the reassessment notices under challenge were issued.","basis":"cited","decided_under":null,"url":"https://ecourtsindia.com/cnr/SCIN010037002023/order-161"},{"cnr":"SCIN010030872023","order":"order-161.pdf","title":"Union Of India vs Rajeev Bansal","court":"SC","court_name":"Supreme Court of India","date":"2024-10-03","citation":"2024 INSC 754","precedential_value":"Binding - Supreme Court Declaration on Interpretation of Income Tax Act and TOLA","court_marking":"reportable","ratio_decidendi":"The Taxation and Other Laws Relaxation Act 2020 (TOLA) continues to apply to the reassessment procedure under the Income Tax Act even after the Finance Act 2021 substituted Sections 147-151 from 1 April 2021. TOLA's extended time limits till 30 June 2021 apply to reassessment notices whose time limit prescribed under Section 149 (old or new regime) falls for completion between 20 March 2020 and 31 March 2021. The reassessment notices issued by the Revenue between 1 April 2021 and 30 June 2021 under the old regime are deemed to have been issued as show-cause notices under Section 148-A(b) of the new regime (per Ashish Agarwal) with the surviving time limit from issuance of the deemed notice to 30 June 2021 remaining available to the Revenue to complete reassessment proceedings under the new regime. Reassessment notices issued under Section 148 of the new regime must be issued within the time limits surviving under the Income Tax Act read with TOLA; notices issued beyond the surviving period are time-barred and liable to be set aside. The first proviso to Section 149(1)(b) of the new regime acts as a saving clause preventing the issuance of reassessment notices for assessment years beginning on or before 1 April 2021 if such notices were time-barred under the old regime's Section 149(1)(b) six-year limit.","applied_to_this_section":"Deletion of requirement to obtain prior approval under Section 148-A(b) for issuance of show cause notice","basis":"cited","decided_under":null,"url":"https://ecourtsindia.com/cnr/SCIN010030872023/order-161"}],"corresponds_to":[],"url":"https://indiacode.ecourtsindia.com/finance-act-2022/section/45/","note":null,"source_note":"Harvested from the Income Tax Department's own portal at incometaxindia.gov.in, which publishes the Finance Acts section by section. India Code carries none of them: its Central community holds the Acts that stand as general law, and a Finance Act is an amending and rate-fixing instrument.","judgments_note":"Judgment holdings are the ratio decidendi as extracted from the order by eCourts India, reproduced unaltered. Reported judgments only.","licence":"Published with commentary and other original matter under s.52(1)(q)(ii), Copyright Act 1957."}