Supreme Court Upholds Income Tax Reassessment Notices under Section 148

In a significant judgment, the Supreme Court ruled in favor of the tax department regarding nearly 90,000 income tax reassessment notices. These notices, issued under Section 148 of the Income Tax Act for assessment years 2013-14 to 2017-18, addressed escaped income. The court allowed reassessments to proceed, while ensuring taxpayer rights are protected under the Finance Act, 2021.

This ruling impacts considerable revenue for the tax department and clarifies how older reassessment provisions apply amidst recent legislative changes. While smaller cases or those not involving assets may offer relief to taxpayers, larger reassessments will continue. The decision has resolved substantial uncertainty surrounding reassessment notices issued during the transition to the Finance Act 2021.

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