20 May 2022
Mr.A received notice u/s 148 for the assessment year 2013-14 as on notice dated 31.03.2021 but the notice was digitally signed on 15/04/2021 .
As per the latest judgment of H'nble Supreme court state that reassessment notices issued under old law shall be deemed to be notices issued under new law.
Here sec 149 state that As per substituted section 149, no notice shall be issued for the relevant assessment year if: (a) 3 years have elapsed from the end of the relevant assessment year, unless the case falls under clause (b) below
(b) If 3 years, but not more than 10 years, have elapsed from the end of the relevant assessment year unless the Assessing Officer has in his possession books of account or other documents or evidence which reveal that the income chargeable to tax, represented in the form of asset, which has escaped assessment amounts to or is likely to amount to INR 50 Lakhs or more for that year.
This limit of 50 lakhs apply to old notices also or not ?
10 July 2024
The Supreme Court's recent judgment regarding reassessment notices issued under the old law being deemed to be notices under the new law pertains to procedural aspects rather than substantive conditions such as the monetary threshold mentioned in Section 149 of the Income Tax Act, 1961.
Let's break down the relevant points:
### 1. Notice Period under Section 149:
- **Old Law vs New Law:** The judgment states that the procedural aspects of notice issuance will be governed by the new law, even for notices issued under the old law.
- **Substantive Conditions:** However, substantive conditions such as the monetary threshold of INR 50 lakhs under Section 149(b) remain applicable irrespective of whether the notice was issued under the old law or new law.
### 2. Applicability of Monetary Threshold:
- **For Notices Issued Under Old Law:** If the notice issued to Mr. A under Section 148 pertains to the assessment year 2013-14, the Assessing Officer must have in possession books of account or evidence indicating that income chargeable to tax, which has escaped assessment, amounts to or is likely to amount to INR 50 lakhs or more for that year.
- **Old Notices:** The threshold of INR 50 lakhs applies to notices issued both under the old and new provisions of Section 148. This means that for the notice issued to Mr. A for AY 2013-14, the Assessing Officer must satisfy this threshold condition.
### Conclusion:
While the procedural aspects of notice issuance may be aligned with the new law as per the Supreme Court's judgment, the substantive conditions such as the threshold of INR 50 lakhs for reassessment under Section 149(b) apply uniformly to notices issued under both old and new provisions of the Income Tax Act, 1961. Therefore, for Mr. A's case, the Assessing Officer must justify the issuance of the notice under Section 148 by meeting the conditions specified in Section 149, including the monetary threshold requirement.
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