Page 82 - DHC Budget Book 2021-22 Final

INDIA BUDGET 2021-22 — Hitherto, Sec. 148 required AO only to serve
Sec On or before 31-03-2021
149(1)(c) In case, income escaping
assessment is in relation to any asset outside India, not more than sixteen years has elapsed from the end of the relevant assessment year.
After 31-03-2021
Said provision has been deleted
notice on the assessee before initiating reassessment proceedings and was not bound to provide reasons recorded for doing so.
— However, w.e.f 01-04-2021, proposed new
Sec. 148A mandated that the AO mandatorily requires to conduct enquiries with prior approval of specified authority before issuing notice u/s 148 and provide an opportunity of being heard to the assessee. After considering the reply
of assessee, the AO shall decide, by passing
an order u/s 148A(d)[which is not appealable], whether it is a fit case for issue of notice u/s 148 and is required to serve the copy of such order along with notice u/s 148 to the assessee. However, this procedure of enquiry, providing opportunity and passing order, before issuing notice u/s 148 of the Act, shall not be applicable in case of search cases.
— Post amendment, time limit for issuance of notice has undergone changes as depicted in table below -
No reopening under the new provisions is permissible if the time limit prescribed in erstwhile Sec. 149(1)(b) has already expired. Further, for the purpose of computing period of limitation, time allowed to assessee as per notice u/s 148A(b) & period during which any proceedings was in stay or injunction shall be excluded.
— Sec. 153A and 153C has been amended so as to apply only in relation to search initiated u/s 132 or books of accounts requisitioned u/s 132A on or before 31-03-2021.
— Specified authority for the purpose of this Section shall be Pr. Commissioner/Pr. Director of Income Tax or Commissioner/Director if
less than 3 years has elapsed and Pr. Chief Commissioner /Pr. Director General of Income Tax or Chief Commissioner or Director General if more than 3 years has elapsed from the end of the relevant assessment year.
Comments
— Various settled principles of the Apex Court wherein it was held that AO must have a reason to belief which should be formed by applying his mind has now been negated by the aforesaid amendment. Further the plea taken by the assessee before the Courts that in view of full disclosure of claim in the return of income, reassessment proceedings cannot be initiated beyond four years by the AO shall now also become ineffective.
— The amended provisions has become more stringent to provide that AO w.e.f 01-04- 2021 can reopen assessment on the basis of
Sec
On or before 31-03-2021
After 31-03-2021
Not more
than 4 years has elapsed from the end of relevant assessment year [no monetary limit]
In case, income escaping assessment is more than H 1 lacs, not more than 6 years has elapsed from the end
of the relevant assessment year.
149(1)(a)
149(1)(b)
Not more than
3 years has elapsed from the end of relevant assessment year [no monetary limit]
Not more than 10 years has elapsed from the end
of the relevant assessment
year, where the AO has in his possession books of accounts or other documents or evidence, which reveal that income chargeable to tax, represented in the form of asset, is more than H 50 lacs.
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