Union of India & Ors. v. Rajeev Bansal

Parties Involved

Facts Summary

The present batch of appeals involves the interplay of three Parliamentary statutes: the Income Tax Act 1961, the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act 2020, and the Finance Act 2021. The Income Tax Act was enacted to levy and collect tax on the income of assesses. Sections 147 to 151 of the Income Tax Act deal with the procedure of reassessment of income chargeable to tax which has escaped assessment. The TOLA was enacted in the backdrop of the COVID-19 pandemic to provide relaxation of time limits specified under the provisions of the Income Tax Act and certain other legislations. The Finance Act 2021 amended the provisions dealing with the reassessment procedure under the Income Tax Act with effect from 1 April 2021. The Income Tax Act was substantially overhauled by the Finance Act 2021. The assessing officers issued reassessment notices between 1 April 2021 and 30 June 2021 by relying on the provisions under Section 148 of the old regime. These reassessment notices were challenged by the assesses before various High Courts. The High Courts allowed the writ petitions and quashed all the reassessment notices issued between 1 April 2021 and 30 June 2021 under the old regime on the ground that Sections 147 to 151 stood substituted by Finance Act 2021 from 1 April 2021. The Revenue appealed to the Supreme Court.…

Legal Issues

• 1. Whether TOLA and notifications issued under it will also apply to reassessment notices issued after 1 April 2021.
• 2. Whether the reassessment notices issued under Section 148 of the new regime between July and September 2022 are valid.

Judgment Outcome

Decided in favour of Revenue.

Precedents Relied Upon

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