Commencement of this Part
Section 147 of the Finance Act, 2021 deals with commencement of this Part. PART IV AMENDMENTS TO THE SECURITIES CONTRACTS (REGULATION) ACT, 1956 Commencement of this Part.
PART IV
AMENDMENTS TO THE SECURITIES CONTRACTS (REGULATION) ACT, 1956
Commencement of this Part.
147. The provisions of this Part shall come into force on the 1st day of April, 2021.
Section 147, The Finance Act, 2021.
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Union Of India vs Rajeev Bansal
Court's Decision & Legal Precedent
After 1 April 2021, When The Finance Act 2021 Substituted The Reassessment Regime, The Income Tax Act Must Be Read Along With The Substituted Provisions. TOLA 2020 Continues To Apply To The Income Tax Act If Any Action Or Proceeding Falls For Completion Between 20 March 2020 And 31 March 2021, Because TOLA's Purpose Of Providing COVID Relief Persists Regardless Of Whether The Regime Changed. Section 3(1) Of TOLA, With Its Non-Obstante Clause, Overrides The Time Limits In Section 149 Only To The Extent Of Relaxing The Time For Issuance Of Reassessment Notices Till 30 June 2021 For Actions Whose Original Time Limits Fall Within The TOLA Period. The Legal Fiction In Ashish Agarwal (Deeming Old Regime Notices As New Regime Show Cause Notices) Stops The Clock From The Date Of The Deemed Notice, And The Surviving Time For Issuing Final Reassessment Notices Under The New Regime Is Calculated From That Date Till 30 June 2021, Excluding Periods When Proceedings Were Stayed And Time Allowed For Response. Notices Issued Beyond The Surviving Time Limit Are Time-Barred And Invalid.
On this section: The Court Examined How The Finance Act 2021 Completely Substituted The Old Reassessment Regime With A New One Featuring Stricter Procedural Requirements, Including The Need For Show Cause Notices, Response Periods, And Higher-Level Sanctions. The Court Applied The Principle That The New Regime Must Be Read Along With The Substituted Provisions And That The Monetary Threshold For Extended Time Limits Was Increased From Rupees One Lakh To Rupees Fifty Lakhs.
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Union Of India vs Rajeev Bansal
Court's Decision & Legal Precedent
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.
On this section: The Finance Act 2021 substantially overhauled the reassessment procedure under the Income Tax Act effective from April 1, 2021, introducing a new regime with stricter requirements including prior approval for enquiry, show cause notice with opportunity of hearing, and new time limits (reduced from 4 years to 3 years for all situations). The Court interpreted how these new provisions apply to past assessment years and interact with TOLA.
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Union Of India vs Rajeev Bansal
Court's Decision & Legal Precedent
The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act 2020 continues to apply to the Income Tax Act after 1 April 2021 if any action contemplated under the substituted provisions falls for completion between 20 March 2020 and 31 March 2021. The extended time limit provided by TOLA notifications till 30 June 2021 applies to reassessment notices issued under Section 148 of the new regime only to the extent of the surviving time limit calculated from the date when the deemed show-cause notices were issued under the old regime (between 1 April 2021 and 30 June 2021). Reassessment notices issued under Section 148 of the new regime beyond this surviving time limit are time-barred and invalid. The legal fiction created in Ashish Agarwal judgment, by which old regime notices were deemed to be new regime show-cause notices, logically extends to allow issuance of final reassessment notices within the time surviving under TOLA, but not beyond.
On this section: Substantial amendment of reassessment procedure introducing new safeguards, reducing time limits from four years to three years, increasing monetary threshold from Rs. 1 lakh to Rs. 50 lakhs, introducing show-cause notice procedure under Section 148A, expanding time limit to ten years for assessments involving foreign assets
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Union Of India vs Rajeev Bansal
Court's Decision & Legal Precedent
1. TOLA 2020 continues to apply to reassessment procedures under Income Tax Act even after Finance Act 2021 substituted the regime on 1 April 2021, provided the action falls for completion between 20 March 2020 and 31 March 2021. 2. The non obstante clause in Section 3(1) of TOLA overrides Section 149 of Income Tax Act only to the extent of relaxing the time limit for issuance of reassessment notices; it does not extend the time limit of three years (or six years for pre-April 2021 assessments) prescribed by the Income Tax Act itself. 3. Section 151 relating to grant of sanction by specified authority is subject to TOLA to the extent that the time limit of three years falls between 20 March 2020-31 March 2021, thereby extending to 30 June 2021 the time for grant of sanction. 4. The legal fiction created in Ashish Agarwal by deeming Section 148 notices under old regime as Section 148A(b) show cause notices under new regime operates with effect from the date of original issuance of the notices, and the surviving time limit for issuance of reassessment notices under new regime must be calculated after accounting for exclusions specified in the third proviso to Section 149. 5. Reassessment notices issued under Section 148 of the new regime in pursuance of the deemed show cause notices must be issued within the surviving time limit under Income Tax Act read with TOLA; all notices issued beyond this surviving period are time-barred and liable to be set aside. 6. The directions in Ashish Agarwal judgment extend PAN INDIA to all ninety thousand reassessment notices issued under the old regime between 1 April 2021 and 30 June 2021, including those not individually challenged before courts.
On this section: Substituted the entire scheme of reassessment effective April 1, 2021; introduced stricter requirements including prior approval, prior hearing, and reduced time limits
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Union Of India vs Rajeev Bansal
Court's Decision & Legal Precedent
The provisions of the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act 2020 (TOLA) extending time limits till 30 June 2021 for completion of actions under the Income Tax Act continue to apply after 1 April 2021 even though Sections 147-151 of the Income Tax Act stand substituted by the Finance Act 2021, provided the action or proceeding specified under the substituted provisions of the Income Tax Act falls for completion between 20 March 2020 and 31 March 2021. The section 3(1) of TOLA overrides Section 149 of the Income Tax Act only to the extent of relaxing the time limit for issuance of reassessment notice under Section 148. The legal fiction created by this Court in Union of India v. Ashish Agarwal deeming Section 148 notices issued under the old regime between 1 April 2021 and 30 June 2021 as show cause notices under Section 148A(b) of the new regime has the effect of continuing the proceeding from the date of issuance of the original notice, with the time during which the show cause notices were deemed stayed (from issuance till supply of material plus two weeks response period) being excluded from limitation computation. The assessing officers were required to issue reassessment notices under Section 148 of the new regime within the time limit surviving under the Income Tax Act read with TOLA. All notices issued beyond the surviving period are time-barred and liable to be set aside.
On this section: Introduction of new regime for reassessment effective April 1, 2021 with reduced time limits (3 years instead of 4 years), requirement of prior approval under 148A, increased monetary threshold (Rs 50 lakhs instead of Rs 1 lakh) for 6-year period, differentiated sanctioning authorities
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Union Of India vs Rajeev Bansal
Court's Decision & Legal Precedent
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.
On this section: Substitution of entire reassessment procedure with effect from April 1, 2021; introduction of new requirements (prior information, prior approval, show-cause notice, opportunity of hearing); reduction of time limit from four years to three years; increase of monetary threshold from one lakh to fifty lakhs; new sanctioning authorities specified
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Questions about Section 147
What have the courts held on Section 147 of the Finance Act?
Union Of India vs Rajeev Bansal (03 Oct 2024) is the leading judgment on this section among those set out below: The Court Examined How The Finance Act 2021 Completely Substituted The Old Reassessment Regime With A New One Featuring Stricter Procedural Requirements, Including The Need For Show Cause Notices, Response Periods, And Higher-Level Sanctions. The Court Applied The Principle That The New Regime Must Be Read Along With The Substituted Provisions And That The Monetary Threshold For Extended Time Limits Was Increased From Rupees One Lakh To Rupees Fifty Lakhs. Another 5 judgments on this section are set out below, all of them from the Supreme Court.
How do I find court cases under Section 147 of the Finance Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Finance Act 2021 147, section 147 Finance Act 2021, section 147 of the Finance Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 6 reported judgments on this section are set out on this page, beginning with Union Of India vs Rajeev Bansal (03 Oct 2024).
What should I read with Section 147 of the Finance Act, and has it changed?
2 other provisions in this corpus refer back to it.
When was the Finance Act enacted?
Finance Act was enacted in 2021. India Code records no commencement date for it. It is in force as at the date shown on this page.
Other sections of this Act
- Fourth Schedule. Fourth Schedule26628 words
- First Schedule. First Schedule9574 words
- 2. Income-tax5993 words
- 6. Amendment of section 103582 words
- 130. Substitution of new section for section 43513 words
- 131. Substitution of new section for section 52699 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. 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. This page is not a substitute for legal advice.