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New Reassessment Regime in the Finance Act 2021, Got Introduced,
With time period for Reopening u/s 148, from 6 to 3 years, Reduced.
Only Escaped Income, exceeding Rs. 50 lakhs per year,
Gave the Jurisdiction, to reopen the cases up to 10 years.
Reason to Believe got Replaced with Information in Possession,
CBDT’s Risk Management Strategy substituted AO’s Discretion.
Deadline of 31.3.2021 for Issuing Old 148 Notices, got Mandated,
However, for 3 more months, CBDT proclaimed this deadline as Extended.
The Transition Phase resulted in Exchequer’s’ Loss of Revenue Worry,
Section 148 Notices, in large numbers, got issued in a Hurry.
Assessees challenged such 148 Notices’ Validity.
Contending the Finance Act 2021, Legal Sanctity.
Delegated Power can’t Overreach Principal Legislation,
This Settled Legal Position got reinstated in High Courts’ Decisions.
High Courts supported the Assessees’ Belief.
And Notices were Quashed, bringing the much-wanted Relief.
Revenue filed SLP before the Supreme Court,
The SC Invoked Article 142 of the Constitution, in Support.
Holding such old 148 Notices as Deemed 148A Notices,
The SC’s Order tries to Mitigate Revenue Losses.
With the Power of Article 142, besides,
Substantive Provisions were given an Override.
Mandating Finance Act 2021 Provisions, as Applicable,
The SC Makes its Order Palatable.
Proviso to section 149 comes in support of Assessees’ Luck.
Notices for AY 2013-14 & 2014-15 shall get Struck,
Notices for AY 2015-16, 2016-17 & 2017-18 shall only Survive,
If the Escaped Income in Asset, exceeding Rs. 50 lakhs, is Derived.
Interestingly, to Reduce Litigations, these Legislative Amendments, were Strived,
Ironically, increased Litigations, are now to be Contrived.
Now, no further Litigation, in this Clearness, is warranted,
If the philosophy of ‘Ease of Doing Business’ is to be adopted.
[By Mayank Mohanka]
