Union of India & Ors...Appellant (S) Versus Ashish Agarwal..Respondent (S)

Parties Involved

Facts Summary

The case involves reassessment notices issued by the Revenue under section 148 of the Income Tax Act, 1961, which were challenged by various assessees in multiple High Courts. The High Courts held that the reassessment notices issued after 01.04.2021 were governed by the substituted sections 147 to 151 of the Income Tax Act, 1961, introduced by the Finance Act, 2021, and were thus invalid. The Revenue appealed to the Supreme Court against these judgments. The Finance Act, 2021, introduced new provisions for reassessment proceedings, including the requirement of prior approval from specified authorities and the need to serve a showcause notice under section 148A. Despite these changes, the Revenue issued reassessment notices under the unamended sections, leading to numerous litigations.…

Legal Issues

• 1. Whether the reassessment notices issued by the Revenue after 01.04.2021 under the unamended sections of the Income Tax Act, 1961, are valid?
• 2. Whether the High Courts were correct in quashing the reassessment notices issued under the unamended sections?

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

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