The Central Board of Direct Taxes (CBDT) has issued an instruction in pursuance of the recent significant ruling of the Supreme Court saving around 90,000 re-assessments by deeming compliance with section 148A of the Income Tax Act, 1961.
A two-judge bench of the Supreme Court comprising Justice M R Shah and Justice B V Nagaratna, on 4th May, upheld the reassessment notices under Section 148 of the unamended Income Tax Act which were issued beyond 01.04.2021 (the effective date of amendment of the said provision by the Finance Act, 2021) to be deemed to have been issued under Section 148A of the IT Act as substituted by the Finance Act, 2021 and be construed as show-cause notices in terms of section 148A(b).
In the light of the above judgment, the Board has issued detailed guidelines regarding the operation of the new section 149 of the Income Tax Act to identify the cases where a fresh notice under section 148 can be issued.
The CBDT instruction also specifies the cases where the Assessing Officer is required to provide the information and the material relied upon within 30 days and the procedure required to be followed to comply with the Supreme Court judgment.
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