Supreme Court Judgement on Income Tax Section 148 Controversy - Impact on Assessee - Who Got What

[@casansaarca]

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[@ajitkumarjain5170]

First of all thank you Rajivji Jain for such a nice explanation. Secondly you have replied to all the queries in this message board which clarify all the doubts. Thanks 😊

[@cadipakunadkat5055]

The explantion given by Mr Rajiv Jain is excellent. Than Mr Khurana for arranging webinar of Rajiv Jain.

[@sureshchandsinghal8119]

Explained in a most benefitting manner. Thanks

[@ashwinimishra9936]

Sir you have explained the Decision in an excellant way. My personal appreciation for a splendid Delivery

[@twoSister_delhi]

My clients also issued notice us 148 of it act A.Y. 2014-15 ,2016-17, 2017-18 21 assessment cases

[@sonusingla2325]

Bahut ache se smjhaya hai . Agar dhyan se suno toh koi doubt hi nhi bachta..

[@mohankumarc2605]

My 148 Notice was dated 31-Mar-2021 but email received on 1-Apr-2021 and Digital Signature is 1-Apr-2021, also the postal notice sent to me Digital signed on 1-Apr-2021. The AO has opened my case in Old Tax Law(prior to amendment of Finance Act 2021) by issuing notice on 1st April 2021 with digital signature and in email (but notice dated as 31-03-2021), At that time it came under 6 Years (AY re-assessment) rule and no limit of 50 lakhs to reopen my case. They completed the assessment and passed order. But now, due to SC Ruling on 4-May-2022 and my notice is deemed to be issued on 1-Apr-2021, only upto past 3 AY can be opened and 50 lakhs rules needs to be followed for anything previous to 3 AY’s. Also, In our objection all this time on this case assessment proceedings.. we did not mentioned notice was issued on 1-Apr-2021 and its not valid to assess beyond 3 years. Our Objection was Assessment cannot be opened beyond 4 years only (as my Auditor was assuming my 148 was issued on 31-Mar-2021 ) Will it be ok to raise Objection now on this merit? Considering we did not raise objection all this time.

[@hanumanthareddyc9581]

Same kind of situation to my client also. What would be the solution.? Can we raise this point in CIT Appeals?

[@rajivjain791]

@@hanumanthareddyc9581 It is a better remedy to file a writ petition before High Court

[@hanumanthareddyc9581]

@@rajivjain791 Can I have your contact details sir?

[@ratansinha3377]

After closing of IT Filing date of aparticular financial year what is the maximum time limit that Income tax department can issue notice under 148(A) for anamoly of income shown in the instant financial year.

[@priyanshukumar-ov2fn]

Thanks Sir..

[@swastikadubeyeducationhub7719]

sir jadgement jarur bajaya kare link ke sath

[@rameshgupta-ud4rk]

What is limitation for issue of notice for Ay2015-16. Ithink no notice can be issued after 31/03/2022 where no writ was filed

[@rajivjain791]

31-03-2026

[@manishaggarwal3837]

Sir On which page no. of Judgment ,it is mentioned that for AY 2013-14 and 2014-15 could not be reopened. Please tell us.

[@rithikkedia2577]

Sir how ay 15-16 assessment can be opened after 1/4/22 as 6yrs will be lapsed

[@girishbharihoke7967]

What about cases of ay 17-18 recd notices after 1 April 2021 and also contested in high court of delhi

[@rajivjain791]

Limit of RS 50L to be applied

[@hasmukhlodha7995]

@@rajivjain791 Pl give me your contact number

[@hasmukhlodha7995]

Read latest judgement of Delhi highcourt where on Assment year 2013 14 Tola has been accepted by Highcourt. All writ will now dismiss on that ground

[@b.k.vyascompany5215]

Nice deliberation, thanks

[@prashantanchlia]

What is the effect of TOLA with reference with the SC Judgement....

[@rajivjain791]

TOLA notifications are quashed by various highcourts and that part of judgement of various high courts have not been modified. Therefore, judgement of HC shall prevail.

[@samirmistry1960]

Sir wat about notice 148 for AY 2013-14 rec'd. Will that b also valid as per suprime court judgement?

[@rajivjain791]

No

[@skloona1441]

Sir,. Is it possible to prepare a draft reply for 148 Notices served for the AY 2013-14, 2014-15, for the benefit of subscribers.

[@bimalkumar-bk5kc]

Excellent

[@omprakashgoyal1859]

Right sir

[@manishaggarwal3837]

Sir how can I meet u professionally.

[@mohankumarc2605]

Sir, 148 Notice dated 31-Mar-2021 but email received on 1-Apr-2021 and Digital Signature is 1-Apr-2021. In this case new Finance Act 2021 takes effect or old Act will be used by the IT. Department for assessment? Pls let me know

[@rajivjain791]

This will be deemed to be issued on 01-04-2021 and all consequences to follow

[@mohankumarc2605]

@@rajivjain791 Thank you sir,

[@mohankumarc2605]

@@rajivjain791 My 148 Notice was dated 31-Mar-2021 but email received on 1-Apr-2021 and Digital Signature is 1-Apr-2021, also the postal notice sent to me Digital signed on 1-Apr-2021. The AO has opened my case in Old Tax Law(prior to amendment of Finance Act 2021) by issuing notice on 1st April 2021 with digital signature and in email (but notice dated as 31-03-2021), At that time it came under 6 Years (AY re-assessment) rule and no limit of 50 lakhs to reopen my case. They completed the assessment and passed order. But now, due to SC Ruling on 4-May-2022 and my notice is deemed to be issued on 1-Apr-2021, only upto past 3 AY can be opened and 50 lakhs rules needs to be followed for anything previous to 3 AY’s. Also, In our objection all this time on this case assessment proceedings.. we did not mentioned notice was issued on 1-Apr-2021 and its not valid to assess beyond 3 years. Our Objection was Assessment cannot be opened beyond 4 years only (as my Auditor was assuming my 148 was issued on 31-Mar-2021 ) Will it be ok to raise Objection now on this merit? Considering we did not raise objection all this time. My assessment order was issued with additional escaped income of 7 lakhs only.

[@hanumanthareddyc9581]

@@rajivjain791 Could you please explain what would be the consequences?

[@rajivjain791]

@@hanumanthareddyc9581 As per Supreme Court decision it will be deemed to be notice u/s 148A and has to be disposed accordingly

[@sonalmann3146]

very well explained.

[@Udai-Bharat]

Sir what type of material shall department provide to assess. In AY 13-14 before 31 march 22 order has passed. What is remedy as per Honble SC Order.

[@rajivjain791]

If notice was issued after 31-03-2021 then file a writ

[@vikastiwari338]

Sir, I have one question for Rajiv sir Sir plz let me know if notice U/s 148 issued before 31 march 2021 and subsequently notice issued from 01 April 2021 to 31 June 2021 , than wht is supreme court order effects.

[@prprasanna1008]

Thank u .👌👌👌

[@MB-oy3ys]

Sir my client as received 2 notice one for 142(1), 2nd is 148 for the AY 2013-14 under faceless assessment income is more than 50L . 148 notice can be void/ invalid for my client ...?

[@pawan1007]

Sir, what will happen if assessee didn't go to high court and AO has given order with demand

[@rajivjain791]

Will have to file writ

[@rupaligupta770]

Thanks

[@manojsdeep]

Very nice explanation Sir, Still confused that how AY 2013-14 and AY 2014-15 out of time limitations of 10 Years in case of Income escape more then 50 Lac ? And a another query that this decision is applicable on notices which are issued before 31-03-2021 for AY 2013-14 and 2014-15? PLEASE Resolve🙏

[@rajivjain791]

Refer first proviso of section 149(1). AY 2013-14 and AY 2014-15 are out

[@arjunghosh3589]

@@rajivjain791 What about the CBDT notification which clearly states that for AY 2014-15 where escape is more than 50 L can be reopened?

[@biganna99]

I have two points : 1. Consent given by Ashish Agarwal's advocate, how can it be deemed to have been given by all litigants... 2..The originial issue was that the notices were beyond 6 years. Now how can the SC travel back and give the ITD a big rope of 10 years..The ITD has been given a chance to travel back to 10 yrs. This is not from the impugned HC orders and this is injustice to the taxpayers.

[@mitravindgarg5372]

Ideally Hon Supreme Court should provide cost to all the assessee who were issued notice for 148 instead of 148A(b) because it was IT Dept's mistake which costed time and money to those 9000 or 90,000 assessee. Yes Govt should not loose revenue because of technicle mistake of law but at the same time assessee should also not suffer and IT Dept need to take ownership of their mistakes which costed aam admi lot of pain n trouble

[@narasimhagadi6693]

Very detailed video sir. Thank you. I received notice 248 notice for AY 2014/15 on 31/03/2021. I have participated in eproceedings myself. My income was finalised by AO as 37 lakhs which I received from the builder as interest ( Rs 3300000) and compensation (Rs326000). AO decided my aggregate tax as Rs 1900000 which I felt is unfair. He credited TDS of Rs 350000 in computation and sent a demand of Rs 1650000. During the course of the assessment proceedings, I paid tax Rs 759925 in October 2021 for which I have challan paid receipt, 26 AS confirms as well but AO did not take my tax payment into consideration and sent me demand of Rs 1650000. AO is not replying to my emails. As the total income is below 50 lakhs for AY 2014/15 is the AO 144c order valid?. He now started penalty proceedings under 271 1 c for concealment/ inaccurate particulars of income for not offering compensation amount Rs326000 to tax though voluntarily disclosed compensation amount during the proceedings.

[@rajivjain791]

This notice was issued on 31-3-2021 so limit of 50 lac is not applicable

[@rajivjain791]

After CBDT instruction no 1 of 2022 let’s get ready for another round of litigation

[@jollysharma7968]

Sir thanks a lot for such a clear clarification. Sir assessee received notice u/s 148 for ay 2017-18 for depositing 12 lakh cash during demonitisation period. as per this sc order then department now can not go ahead with 148 proceeding?? Pls reply sir

[@rajivjain791]

No Because escaped income is less than Ra 50 lakh

[@jollysharma7968]

@@rajivjain791 thanks a lot sir 🙏

[@hasmukhlodha7995]

Sir Nice information. As In Assment year 2017 18 Eccappment income is 18 lakh and income tax department want to reassment should I go with mumbai Highcourt for quashing.pl sir guide

[@anandprakash8379]

Excellent explanation of the whole judgement, Rajiv Sir 👏

[@vikramgarg1729]

very well explained!

[@coffee_soul_spg]

Thank you for clarification!!!

[@abhaygandhi6229]

The Central Board of Direct Taxes/Income Tax Department, recently published a brochure on 21st November, 2021 with the heading “Benefits of retired employee under Income Tax Law” on the occasion of 75th “Azadi Ka Armit Mahotsav” . In the brochure, CBDT/Income Tax Department, a clear cut answer has been given that the Payment of Leave Encashment after retirement is non-taxable for the employees who covered under sub- clause-II (Board/Nigam/Corporation/Bank/LIC/Insurance and Private Sector etc) up to 10 month salary payment. In this reply, they have neither mentioned the condition of Gazette Notification nor the amount of 3.00 lakh, which was declared in the year 2002 with effect from 1/4/1998, because they know very well that they have done a mistake and not issued Gazette Notification after 2002. So, in the present circumstances, this condition is not applicable, so they have not mentioned this condition in the answer. After this clarification, it is clear that the payment of Leave Encashment is non-taxable since 1961. Despite this IT official allowing exemption of Rs 3lakhs to bank employees and amount exceeding Rs 3Lakhs are added to Income of individuals and levied tax on amount of leave encashment at the time of retirement is per applicable tax. How we can proceed to claim refund for such taxes collected by way of demand notice or otherwise

[@omrajpurohit4562]

Very nicely explained sir, I only query I have is: It is observed that department has issues various notices, however, proceedings were not initiated effectively or not followed up by the tax department due to various HC order. So, what will happen to those cases, since the time limit to pronounce the order has already been passed, means whether extension of time limit will also be available to those assessee even though they were not the party to writ petition?

[@rajivjain791]

Time barring date for completion of assessment is 31-03-2023

[@Anilkumar-kw5rp]

Sir in one case of AY 2013-14, notice issued in the month of March, 2021 and assessee approached the HC where stay granted by HC. What is the next course of action in this case in view of apex court decision. Thanks

[@rajivjain791]

This decision doesnot apply to your case

[@Anilkumar-kw5rp]

@@rajivjain791 sir now what is the limitations for completion of assessment proceedings in this case? How the AO calculate the limitation?

[@rajivjain791]

@@Anilkumar-kw5rp already expired on 31-3-22

[@TheMotorman1981]

Thank you for the clarification.. So basically even if 148A is activated as per Supreme court order, if the order is time barred then how will 148A be executed for notices AY 2015-16 under section 148?

[@rajivjain791]

Limitations for AY 2015-16 has not expired. But additional condition of escaped income of Rs 50 L or more represented by an asset to be satisfied.

[@mohankumarc2605]

Pls explain in English so it can reach wider audience. Too much of information in Hindi , I am not able to understand

[@rajivjain791]

You can ask your question. I will be pleased to reply

[@mohankumarc2605]

@@rajivjain791 sir, AO forced me to file ITR for AY 2015-2016 and they completed assessment also against me (148 was issued on 1-April-2021) and assessment completed by 30-Mar-2022. Is there any relief possible for me sir

[@mohankumarc2605]

@@rajivjain791 it was done in faceless, but suspect that AO had controlled all assessment stage from behind the scenes

[@rajivjain791]

@@mohankumarc2605 You are required to file writ petition to quash the assessment order and seek another opportunity in terms of judgement of Supreme Court. In the alternative you can file appeal to seek relief from CIT.

[@mohankumarc2605]

@@rajivjain791 also , pls explain how to deal with faulty AO who does out of the way process to deal with assessee ...

[@biganna99]

I disagree with the views of Mr Jain. The advocate of Ashish Agarwal might have given consent to the SC in his case, but how that consent can be deemed to have been given in the cases of rest of the affected tax payers who have remained non represented due to this judgement. The deptt may take action afresh for the AY 2013-14/2014-15 as per new procedure u/s 148A for 50L cases falling within 10 yrs. Escapement of income Represented by asset itself includes expenditure as well as entry in the books .. You may wait & watch how the IT Deptt interprets this judgement. This judgement is clearly given in the interest of the exchequer without making any adverse finding on the HC judgements. This is an effort of Hon SC to work out a via media for the ITDeptt and nothing else. None of the assessee is going to be spared..all will be assessed & taxed So it is in the interest of the assessees to try for remedial further appeal / review/ reference etc.. if available

[@krishnareddy9361]

148A is just for the name sake section. No AO reviewing the replies given by assessee apart from copy paste in order

[@sushiljain9948]

define 50 lack

[@nalenymahalingam852]

If you are giving explanations in English strict to English, or if you are giving in Hindi strict to Hindi. don't mix two 'languages

[@rajivjain791]

You can ask your question. I will be pleased to reply

[@tksarun9975]

Sir when u r talking about an important chapter why cannot u talk in English sir.is your intention is only to address few section of people only.being a charted account u could have spoken in English.

[@rajivjain791]

Dear you can ask your question. I will be pleased to reply

[@maheshkumar3268]

Please explain in Hindi language sir please.

[@sandhyapendyala5350]

Please select one language while delivering the topic. Preferably English. Mixing both languages is not advisable. Please speak in English.

[@casansaarca]

HingEnglish is best Language now a days and plz dont comment unnecessary, Ask any query if your have.

[@vivekkhurana4774]

👍🎉🙏👍

[@parthadutta7156]

Thank you, pls share email id / mobile of CA Rajiv Jain