SLP filed in Supreme Court against order of Allahabad High Court quashing reassessment notices u/s 148

As expected, the department has filed an SLP before the Supreme Court against the order of the Allahabad High Court wherein all the notices u/s 148 issued on or after 01/04/2021 has been quashed for the reason that the delegated authority cannot be exercised so as to override the enacted provision of the Act. The SLP filed by the department argued that the Allahabad Hon’ble High Court has adopted an interpretation that is contradictory to a plain and literal construction of Section 3 (1) of TOLA. It is further pleased that that Section 3(1) provides for relaxation/extension of time-limits for completion of actions that could not be completed with within the statutory deadline due to the COVID-19 pandemic

It may be recalled that the income tax department has issued numerous notices u/s 148 after 01/04/2021 without following the new procedure set by the Finance Act-2021. The new reassessment proceeding prescribed the new procedure to be followed for reassessment cases and also the new time limit of reopening of the case.

The Allahabad High Court, Rajasthan High court, Delhi High Court & Kolkata High Court have already decided the appeal in favor of the Assessee. The Chhattisgarh High court has decided the case in favor of the department by holding that all such notices are valid.

Income Tax Department’s Special Leave Petition [SLP] with Supreme Court against Allahabad High Court order quashing notices u/s 148 of Income Tax Act has now made all the proceedings live till the case is disposed off by the Supreme Court.