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bow down to the parent statute. This proposition application of mind by the authority prior to
has been upheld by the Hon'ble Supreme Court in reopening is must. Escapement of income is
the case of UOI &Anr v. Intercontinental Consultants required and reopening shall not be permitted to
and Technocrats Private Limited (2018) 4 SCC 669, make general/roving enquiry. Any vague or
Nova Ads v. Metropolitan Transport Corporation incorrect information cannot form basis for
&Ors (2015) 13 SCC 257, and Babaji Kondaji Garad v. reopening the assessment for making roving
Nashik Merchants Co-operative Bank Ltd., Nashik enquiry The authority shall look into the information
&Ors AIR 1984 SC 192. and make inquiry and seek reply from the assessee
Therefore, CBDT Circulars, Notifications and before issuing notice under 148 of the Act. Power of
Instructions cannot conflict with the Income-tax review shall not be available with the authority.
Act, 1961. The Parent statute i.e., Income-tax Act, While drafting reply to notice 148A(b) of the Act
1961 will prevail over such CBDT Circulars, assessee should seek whatever clarification or
Notifications and Instructions. details they require in regards to the information
As per the Supreme Court decision the defence of and simultaneously file detail reply along with all
limitation u/s 149 is available to the Assessee. As far possible evidence and documents to refute any
as A.Y. 2013 - 2014 is concerned the last day for issue alleged facts stated in the information.
of Notice u/s 148 is. 31.03.2020. Now by virtue of The authority has to pass a Speaking order under
first proviso to Section 149 of the Act the reopening section 148A(d) of the Act. In case proceeding u/s.
is time barred. The proviso reads as under 148A of the Act are stayed, the period of limitation
“Provided that no notice under section 148 shall be for issuance of the notice u/s 148, would be
issued at any time in a case for the relevant extended by 7 days if the available time limit is of
assessment year beginning on or before 1st day of less than 7 days. Once the reassessment proceeding
April, 2021, if a notice under section 148 or section u/s. 147 of the Act is initiated and subsequently
153A or section 153C could not have been issued at some issue has been noticed by the Assessing
that time on account of being beyond the time limit Officer, for that subsequent issue, no requirement
specified under the provisions of clause (b) of sub- to comply with the provision of section
section (1) of this section or section 153A or section 148.Procedure under section 148A of the Act shall
153C, as the case may be, as they stood immediately not be applicable in case of search, survey or
before the commencement of the Finance Act, requisition cases initiated or made or conducted
2021” Before such assessment or re-assessment or re-
The Hon. Gujarat High Court in Keenara Industries computation commences, a notice is required to be
Private Ltd v. ITO (2023) 147 taxmann.com 585 (Guj) issued under section 148A of the Act, which can be
(HC) and Allahabad High court Rajeev Bansal v. UOI issued only when there is information with the
(2023) 147 taxmann.com 549 (All) (HC) has held that Assessing Officer which suggests that the income
Notice u/s 148 issued after 31/3/2021, TOLA will not chargeable to tax has escaped assessment in the
apply. SLP are filed before Supreme court case of the assessee for the relevant
notice are issued to the parties , assessment year.
therefore one have to wait to see the Thus for valid initiation of reassessment
final fate of these limitation issues proceedings under sections 147 to 151 of
before Supreme court.
the Act, the following jurisdictional pre-
conditions needs to be satisfied.
Scope and application of New i. That the assessing officer should have
provision for reassessment:
information which suggests that
13. On reading of the provision assessee's income chargeable to tax has
it is clear that requirement of escaped assessment. The said
33 Keep smiling, because life is a beautiful thing and there’s so much to smile about.
