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The Reassessment Order Story



The Finance Act 2021 substituted the old provisions on reassessment with new set of reassessment provisions which were made applicable from the 01 April 2021. However, the Income Tax department has extended the validity of the old reassessment law till June 30th 2021 and thereby issued reassessment notices to various assessees. As a result, many assessees have filed writ petitions at various jurisdictions challenging the validity of the notification as being arbitrary and illegal. Considering the writ petitions of the assessees, the Centre is considering promulgating an ordinance to reduce such litigations.


Sources


[1] The Finance Act 2021, Section 40 amending Section 147 of the Income Tax Act, 1961.

[2] Central Board of Direct Taxation, Department of Revenue, Ministry of Finance, Notification S.O.1703(E), (April 27th 2021), https://www.incometaxindia.gov.in/communications/notification/notification_38_2021.pdf

[3] ‘Centre mulls Ordinance for past tax assessment as litigation mounts’. BUSINESS STANDARD, (July 21, 2021), https://www.business-standard.com/article/economy-policy/tax-tussle-centre-mulls-ordinance-as-income-tax-litigation-mounts-121072001774_1.html also ‘Govt ponders Ordinance route for past tax assessment as income-tax litigation rises: Report’, ET Now Digital (Jul 21, 2021), https://www.timesnownews.com/business-economy/economy/article/govt-ponders-ordinance-route-for-past-tax-assessment-as-income-tax-litigation-rises-report/788406

[4] Id


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