2024 (11) TMI 252 - SCH - Income Tax

Validity of reassessment notices/ proceedings - scope of notices issued under Section 148 of the new regime between July and September 2022 - Application of TOLA to the Income Tax Act after 1 April 2021 - TOLA and notifications issued under it will also apply to reassessment notices issued after 1 April 2021 or not? - As decided by HC 2023 (3) TMI 1538 - GUJARAT HIGH COURT all original notices under section 148 of the Act referable to the old regime and issued between 01.04.2021 to 30.06.2021 would stand beyond the prescribed permissible timeline of six years from the end of Assessment Year 2013-14 and Assessment Year 2014-15. Therefore, all such notices when they would relate to Assessment Year 2013-14 or Assessment Year 2014-15 would be time barred as per the provisions of the Act as applicable in the old regime prior to 01.04.2021. These notices cannot be issued as per the amended provision of the Act. HELD THAT - The Special Leave Petitions are disposed of in terms of the judgment of this Court in Union of India vs Rajeev Bansal 2024 (10) TMI 264 - SUPREME COURT (LB) AO will dispose of the objections in terms of the law laid down by this Court in Rajeev Bansal (supra). Thereafter, the assessees who are aggrieved will be at liberty to pursue all the rights and remedies in accordance with law, save and except for the issues which have been concluded by the judgment of this Court in Rajeev Bansal (supra). Pending applications, if any, stand disposed of.

Summary

The Supreme Court, in a judgment by Chief Justice Dhananjaya Yeshwant Chandrachud and two other Justices, disposed of Special Leave Petitions in accordance with a previous judgment in Union of India vs Rajeev Bansal. Assessing officers must follow the law laid down in the Rajeev Bansal case, and aggrieved assessees can pursue remedies except for issues already decided in that case. Pending applications are disposed of.