Webinar on Reassessment under Income-tax by AIFTP-NZ

Added: 2026-05-30

[00:00:00]Narang Jensen sir past president of AFTP and dear senior members dear professional colleagues on behalf of AFTP nor zone uh I warmly welcome all of you to today's webinar on the topic reassessment under income tax as ap completes its 50 glorious years with vision of ethics education and excellence we continue to organize such webinars for the benefit of our tax professionals and members It is really encouraging to see such such an active participation from all of you. This is our 10th webinar in the year 2026. We have already organized four conferences and uh the fifth conference we are going to organize on 13th June at JP hotel which would be graced by Shiri Mahavir Singh GI vice president honorable IT SG and renowned speakers G Shoja Sar JK Mitt Saras would be deliberating. I personally request all the members present over here to please register for the conference on 13th June. I sincerely thanks direct tax study circle committee ship Guptas Shivatas and all other office beers and team members for their hard work in organizing these programs.

[00:01:16]Today's topic is reassessment proceedings. Reassessment proceedings are very important in today's tax practice and we are privileged to have with us advocate CAN from Delhi as today's speaker. Sir is respected in the field of taxation and known for his vast knowledge and experience. We are thankful to him for joining us and sharing his valuable insights. I once again welcome our esteemed esteemed speaker and all participants to this webinar. Thank you very much Jah Jar.

[00:01:46]Over to direct tax committee chairman Shiv Gupta sir please.

[00:01:50]Thank you Anoj. Uh >> good evening.

[00:01:58]>> Good good evening to all. I welcome Vijay Jan sir Naran Jen our past president and Mr. AK Sasta Vice President North Jone AFTP and all other delegates attendees in this June meeting as mentioned that this is the 10th June meeting which has been organized now today's topic is very important the topic is the reassessment uh under the income provisions of income tax act and as we all know reassessment has been very important topic from very beginning and most substantial litigation under the income tax act has been relating to the reassessment and the old leading case has been the Kolkata discount 41 ITR which laid down various legal propositions in this regard and after that lot of case law any ITR which you may pick up more than 10 15 cases you will find on reassment itself and after that there has been a judgment of the chicken drive shaft which provided certain basis that the officer should provide the regions and they pass his speaking order and all that. So that this is judgment of the Supreme Court was passed in 2020 2003 but the government took a very long time to bring that law laid down by the Supreme Court in the institute and in 2021 this law was amended under the income tax act and after that lot of litigation had gone into and the leading cases have been the Ashish Shagarval Rajiv Bansal and all that and again there have been amendment in 2024 and again there has been controversy regarding fo and jao and amenment has been brought in in 2026 with retrospect effect. So what I want to say that this has been always a very important topic under the income tax act and Mr. Be Jan has been associated at all levels under the in regard to this litigation and he has been part of all litigation which happened before the Supreme Court Rashad Dal Rajiv Bansal and all that. though we could not find a better person to speak on this topic.

[00:04:10]Therefore, we requested Mr. V Jen and he we are glad that he accepted our uh request and he is here today in this zoom meeting to address us. So before Mr. Bean take over I'll request Mr. NP and our past president to say few words and then Mr. AK SAS can introduce Mr. Bean and then Mr. Beijan can take over.

[00:04:35]May I request Mr. NP please Naran Prasad Jan our past president of EFTP.

[00:04:43]>> Uh thank you VP Gupta G.

[00:04:46]Today I have come to this webinar to listen to the respected CNG and the N zone is doing very well. My congratulations to VP Gupta G for his able guidance and Anoj akasav G and you are doing a good job. Whenever I find time and the issues related to direct I am I've been joining and I will keep on joining I will not take much of a time because I want I would like to listen to CAN advocate come thank you very much Mr. AK Rasta please introduce Mr. >> Good evening. Good evening friends and thank you VP for all see so in the federation we have the moto fedicious moto is triple E education ethics and excellence. Keeping this in mind, we are have been in the process of holding programs from time to time and in nozzy circles, one in direct tax and one on indirect taxes in which we hold a meeting every month.

[00:06:07]The attempt is to educate or share with the fellow members about the developments in uh in law and also to resolve their uh the issues that they may come across in their practice.

[00:06:24]Today's uh program is the in the month of May that is the fifth fifth month of the year and this is the fifth program on direct access. We had we had four four lectures earlier and they were all very well attended. They are all very relevant topics and today's topic when we were to decide was either what whether we go for 20 25 act or we go for something which the members are grappling with and it was for virtually we decided that we will have uh the issues in which the members are have issues and uh we couldn't find a person better than Mr. V and uh just to share with you the program was already slated for tomorrow but Vij had some personal uh program tomorrow which had come up. So he requested that if we can change the date and to our in fact he asked if we can cancel it but to my request he agreed that okay he will postpone it. he will prop it and that's why from instead of 29th we are holding this program on uh on 20 28 that's a Thursday generally we hold it on Friday uh well Mr. Mr. VP Gupta has already said a few words about uh about the subject. This is an reassessment is a neverending litigation uh issue not only from the juris jurisp point of view but also the statutory amendments are there from time to time and the government has or on behalf of the government it is being stated in the in the supreme court many a time that well so much of revenue is involved so many many cases are involved and leading rather persuading supreme could exercise his extraordinary powers under 142 article 142 to go beyond something which was even not there in the prayer of the of the department and as as said by Gupta G Mr. has been associated with this right from the high court to the Supreme Court in all the all the matters and we had earlier also heard heard him in uh an IT80 bar program on reassessment along with couple of other councils who are working now coming to introduction of vijen I don't think Mr. Jen requires any the audience requires any attendance because he's such a Jen is such a popular figure a towering figure in in the provision of accountancy and tax that anyone who is uh has done anything on on or has some depth in in tax would know Mr. Mr. Ven just to maybe just briefly I would say that Mr. Vijen has been the a triple graduate then he's a law graduate and uh he has been the past president of the institute and for last couple of some years he in he gave up his certificate of practice and he's practicing as an advocate that's why and he can he could go to the I quote and supreme court and uh the depth of knowledge that he has not only on the on the tax but also on the economic aspects I often listen to him when the finance bill is presented that economic aspects that he he deals deals with are something which is a mindboggling that he has a in-depth knowledge on on the economic part also economics economic and then he could talk about that why and has has a rationale behind uh the amendments that are being brought up brought in by the by the by the government through finance bill or the economic policy that we have I think I I'll have to go cut short there and straight away request request Mr. Vij to take up the topic. Thank you sir.

[00:10:13]>> May I now request van to take up this issue matter and after you finish in between any member having any question may note down the question the chat box may put the question and at the end there will be I'll request Mr. Jan to kindly answer the questions which will be questions will be read by Silpa Gupta who is the cook to this study circle meetings and so I'll request your kindly take over thank you Gupta G thank you Shivas Sab and honorable past president Narend and Sori I can see Anus was there and uh Van is here and all my dear Friends, colleagues, brothers and sisters, it's a great honor for me for being invited to talk at a meeting and a webinar being organized by the Linda Federation of Text Practitioners, Northern John. Uh I can hear I can see V Gupta G and Anuji and Ashab doing a wonderful job persuading speakers, inviting people, organizing meeting programs, enlightening members on the various issues on tax issues. India federation has been quite old and very active federation on the tax issues and it's always a privilege to be part of this type of a webinar and to share the views on that part on that issues.

[00:11:41]Uh friends uh today topic is a topic on reassessment and reassessment has become popular in the last five years as my experience in the text for the last almost now for 50 years. I have seen it that I have never seen such vigorous I think active activation on part of the revenue and such vigorous resistance from the taxpayers on the issue of the reassessment.

[00:12:22]We all I think being tax practitioners are aware of the way back when normal scrutiny notices used to be issued.

[00:12:29]There was a period I believe uh pre80s bilab or early part of '90s it is when every first assessment used to be a scrutiny assessment and thereafter it started the process of some selective scrutiny assessment by draws etc or then thereafter this computer selective scrutiny schemes came up and reassessment was only an exception Earlier the period was allowed to the department to issue 1432 to notice was quite big. It used to be 2 year then reduced to one year then reduced to 6 month and now reduced to 3 months.

[00:13:12]Reassessment in very rare cases used to be a notice coming up assessing officer recording reasons uh asking you to file the return you are filing return then file objections and getting disposed of.

[00:13:25]And my experience in high court which I think now is almost 15 years. I joined high court. I started coming to the high court in 2011 and it used to be very rare cases that it used to come about 148 reopening because the number of cases being reopened were very very few only cases on the issue but as I see in last five years I believe thanks to the amendment made in the section 147 to 151 and at the same time computerization ation using the data a or all of that information. Now I believe reassessment is a norm assessment is an exception. You number of cases getting selected in scrutiny under cash are exception but reassessment is a norm as and when any information travel to the department 148 notice comes up on the table on issues.

[00:14:26]One of the reason I say oh is this the data been coming to the revenue and the second is the amendment which was made by the finance act 2021 when covid was at the peak and the way the procedure was changed and the way that extension was granted it opened up a pandara box for everyone revenue taxpayer and the tax practitioners.

[00:14:50]I you would have heard ESC making observation in the Supreme Court when Ashish Shagaral was being discussed 93,000 cases when Rajie wins was being taken up saying again more than one lakh cases and recently when Jiao Fas is coming up he made a statement government revenue of more than 15 lakh cr rupes is involved in this reassessment procedure now this has posed a challenge to all of us as a practitioner also because as I See assessment the revenue has a right to select the case for scrutiny and tell yes I want to have a scrutiny of this assessment nobody can raise any issue. I believe 143 notices by and large are not challenged except when the notice are delayed or something like is there or otherwise there is no challenge and assessing officer is well within the right to say that I want to scrutinize the return but when reassessment comes up the larger issue is because the allegation is that income has escaped assessment and this cannot be a substitute for an assessment.

[00:15:55]Reassessment is with an allegation that income has escaped assessment and primary honors is on the revenue on the assessing officer to lead evidence and to come out with a primary facts which for a common man of a similar knowledge and intelligence can have a reasonable bas basis to assume that yes your income has escaped assessment.

[00:16:24]I believe before 1st April 2021 this was very well structured in section 147 when an assessing officer has reasoned the belief that income has escaped assessment and then he can reopen the assessment issue notice 148 after recording the reason taking a valid approval whatever it is not required and the there were time- tested judgment from right from supreme court on various issues what is the meaning of reason to believe It cannot be reason to doubt, reason to suspect. It should be a reason which is balanced and which one can understand. Yes, there is a negation privacy. There were judgment both in favor of the revenue, both in assesses.

[00:17:07]Yes. What is the meaning of the reason to believe and enough Jewish students was there? But the scenario changed from the 1st April 2021.

[00:17:17]And what has happened is from 1st April 21 and today today we are if I assume 31st March 26 if not more at least four times this mechanism has been changed which itself is a creating too much uncertainty too much problem on the issue what is the meaning etc on that issues I would just like you to take you through various provisions and then I will come to the various issues who's arising. If you allow me to share the screen, let me just share the section wise. I just want to go on that part.

[00:18:08]Can you see this presentation?

[00:18:14]>> Yes sir. Uh we can easily see this.

[00:18:18]>> You can see this slides.

[00:18:19]>> Yes. Yes. Yes. Yes. Yes.

[00:18:22]>> It can be. Yes, it's visible. It Yeah, it is visible now.

[00:18:25]>> Now what what I have done is on the left hand side is section old section and right side is the new section uh under the income tax act 2025. But I will say that by and large the right side is exactly what the left side is there only assessment year getting two tax years. I will just talk about wherever it is required to make a uh some uh presentation or some clarification on that part. If you look at this right side of the section 147 if any income chargeable to tax in the case of an SSC has escaped assessment or any assessment year assessing officer may subject to the provision assess or reassess the income or valuation. Very simple. If any income chargeable to tax has escaped assessment, there can be no doubt. Yes, it will. And then the explanation comes up for the purposes of assessment or reassessment or recomputation under this section or assessing officer may assess or reassess the income in respect of any issue which has escaped assessment and such issue comes to his property subsequently in the course of proceeding under this section. irrespective of the fact provision of section 148 have not been complied. This explanation by and large is exactly the explanation which was there earlier in 147. But this section if any income has a chargeable to this there is a change on that part and then if you if you look at this this I 147 will come later on when Java for we will talk it out. Now this laid down because when what we what we were reading here income chargeable to tax has escaped assessment. Now what has escaped assessment has now been explained in section 148 and what it says is before making assessment reassessment or recomputation under section 147. The assessing officer shall subject to the provision section 148 issue notice. This can be left it out. Now if you go a little down this is the explanation which has been given what where is the income has escaped assessment for the purpose of this section and 146 148 the information with assessing we suggest that income chargeable to test assessment means now these are the six challenges because now it has been now tableated that under these six circumstances there is an information which has escaped which say suggest that income has escaped assessment and which give jurisdiction to the assessing officer to issue 148 notice of course subject to 148A procedure. Now what are these six any information in the case of the relevant assessment year in accordance with the risk management strategy formulated by the board from time to time.

[00:21:21]Now here is this is the biggest challenge.

[00:21:24]I believe in case a policy has been formed by the risk management strategy ideally it should be scrutiny that we believe that this type of cases need to be verified then there can be a scrutiny but to say that any information in the case of sess where in accordance with the risk management strategy I believe that cannot be and should not be a ground for what we call making a reassessment Reassessment you can initiate only when you have prime FSI material to show income has escaped itself but I will give a credit to the revenue also. They say that this is only for the purpose of issuing 148A notice one notice and you are entitled to send a reply and if you're satisfied then we will not go ahead with this but the experience says this is by and large a formality once a 148A1 notice comes up I believe my all my friends which are sitting here will endorse the view that if not more than 80 to 90% cases 148 A3 notice order is passed against and 148 notice comes up on the table. So this this cannot be I believe in my opinion per se cannot be a ground for issuing 148 notice. It can at best be 1432 notice.

[00:22:51]Second is any audit objection to the fact that assessment has not been made in accord with the provision of the app.

[00:22:59]I appreciate that this can be one of the ground not in accordance with the provision of that one one can look into that. Of course, any information received in an agreement referred to in section 90 or 9A. Here again, I believe this cannot be per say ground for reopening. Of course, subject to 148A.

[00:23:20]You are again verifying it. Information may come. I have made an investment outside India. I have an allas. Why? Why that should be a ground for issuing 148A or 148? If you believe you must have materiality yes this information indicate that you have not disclosed or this is not added in your income then on can be ground any information made available to the assessing officer under the scheme notified as section 135A so much information get uploaded under the various this AI etc and the 285BA provision where is required to submit the information 1336 you collect information on that basis now on that basis again you have to Make a primary view at your end. Any information will require action in consequence of the order of a tribunal or a court. Yes. Assessing officer on the basis of any order passed.

[00:24:12]Thereafter he looks into that and then he found out that in your return there is some challenge he can of course issue and then any information cases say emanating from a survey. Yes, you have very well right to do that order. Now this these were the six category of cases under the 1961 act applicable till 31st March 2026.

[00:24:34]Now you see on the left right hand side right hand side there are I say six but G and H have also been added and G and all any direction in the case of an SS given by the panel under section 2746.

[00:24:50]Now this is basically a G issue where the issue has coming about any finding or direction contained in an order passed by an authority criminal or court in any proceeding under this act by way of appeal reference or revision. This is an additional ground added where the assessing officer shall be deemed to have information that income has escaped assessment and then he can issue 148A notice. Only two cases where he is not required to issue 148A proceeding is the information which is made available under the scheme of 135A then he is not required because then in that case with approval he can open up the straightaway on that issue on that part.

[00:25:31]Now having said so when information comes back come to him now this is the procedure which he has to follow. This is 148 A. Some of my friend will know will be knowing that earlier there used to be 148 A B C D and A mandated that assessing officer will verify the information at his end and thereafter after verification he will carry out the exercise and issue a notice of B. Now that a 148 a has been deleted and this 148 away stateway assessing officer will issue a notice. If I read it out where the assessing officer has information which suggests that income chargeable to tax has escaped assessment. In the case of an SSC for the relevant assessment year, he shall before issuing any notice under section provide an such serving upon him a notice to show cause.

[00:26:38]Why a notice under section 148 should not be issued.

[00:26:42]notice that income chargeable to now what is being what is being projected is that by deleting that clause that whereby assessing officer himself was required to examine the information I believe that's not a good for the purpose of trans I will say equity assessing officer need to look into the information need to look into the return and should make a prime FSI view yes it is a case for issue a 148AB notice which mean that he has got something up his sleeve which indicate yes which meet the requirement of a reassessment to income escaping assessment but now it is not there it only states that in case he he will issue an notice to you giving an opportunity of being heard of being heard here will not mean that you will have an opportunity of a personal hearing all you will have is a shock a notice and you can reply it only online or by post whatever it is may be the case in case it is there and the second part is that assessing officer shall give the information which suggest he has to provide the information which he has up his sleeves on the basis of which he is saying that income has escaped information. Now we must try to uh read uh the word which have been used because there are two word which will come in later on 148 A3 and 11 here is he need to be need to provide information. It it is not saying that he need to provide the material. Now if you look at this section three what he says the assessing official shall on the basis of material available on record and taking into the account of the reply. Now there is now I think difference of opinion on this these two words because accompanied by information and then saying on the basis of material available.

[00:28:50]What happens that assessing officer just gives a primary assign information.

[00:28:56]He does not provide you the entire material. You submit the reply or later on he uses the other material available with him against the assistant and says that it is a fit case. I believe objective was not this though the words uses information and the material. If we make out a difference that there's a difference between the information and the material and assessing officer despite having the material doesn't share the same and using this that material against the CSE we are defeating a very very objective of introducing this new scheme which was to overcome which has happened earlier that the GK and drive ship GK and drive shing officer was not providing he was recording reason issue 148 and Later on challenge being made then the problem was coming up. Then they said no we will provide you everything what you have what we have. I believe the right course I I will assume and the interpretation should be whatever the information assessing officer and material he had on the basis of which he is coming and issuing a notice that need to be provided to the assesse and the material available here will mean what has been provided. I can appreciate any information or material coming after issue of 1481 notice. But in case it was with the assessing officer and he has not given to the obviously the reply which is required to be submitted in response to this notice will not be complete since the sess does not have the information knowledge what is against him. He need to be provided absolutely all material which is available in Sudan.

[00:30:42]Now this this is the procedure which has to be followed by the assessing officer not hard meaning only reply on receipt of reply he will consider etc. And para four says that as I said that this procedure need not be followed when 135 is so and so and so but he need to take an approval from the authority. Now a significant amendment has been introduced which I said there are two thing which more have been added. The SSC has received assessing received direction from the approving panel or income escapement has pursuant to any finding or direction which I will talk you later on on that part on that issue. Now going back on the issue after doing this exercise now what he has to do he has to issue a 148 notice. Now if you look at this before making assessment reassessment recomputation under section 147 the assessing officer shall subject to the provision of section 148A issue a notice to the assesse meaning thereby before making assessment he need to issue a 148 notice require him to furnish within such period as may be specified in the notice not being less than 30 days from the date of such notice but not exceeding 3 month from the end of the month in which such not issued the return of income of any other person respect his assessible under so and so and so and so.

[00:32:13]Now this clause has is a independent clause. Now provided that no notice under this section shall be issued unless there is information with the assessing officer which suggest that income chargeable to tax has escaped assessment in the case of si for the relevant assessment year. Now there is double jeopardy here. If you go back to section 147, if any income chargeable to tax in the case of has escaped assessment, the assessing officer may subject to the provision of section so and so and so issue. Now if you look at this section three, it says in these cases it will be considered that assessing officer is having income chargeable information chargeable to assessment. Now we say provided that no notice shall be issued.

[00:33:06]Of course the notice can be issued only when the first clause says that notice had to be issued on that issue. An important change which has been made and probably which has gone unnoticed is this issue and notice.

[00:33:21]If you look at the earlier act of 2021 and even in 21 the word was serve serve a notice. Now this has been substituted with issue of a notice. I believe this is outcome of the judgment of the Dilli High Court in the case of Chetan Gupta and earlier where it has been held that in case a notice 148 notice has been issued before 31st March. It is well within the time but that does not mean the service is dispensable and assessing officer were duty bound to serve the notice before completion of the assessment maybe after the limitation period but beforement. Now that in order to overcome that difficulty in the 2024 this amendment was made where this word issue of notice uh issue a notice had been substituted instead of a service.

[00:34:19]Now I believe in case a notice has been issued even if it has not been served on the sessi before completion of assessment I believe it will be difficult to rely upon chetan gupta and to then to survive on that part on that old issue. Now coming back to on this issue, the return shall be furnished in the form such form as baby and shall acry the return were furnished and now a new section has also been provision has also been added that in case the return is not furnished within the due time prescribed it will not be deemed to be written under section 139.

[00:34:55]Now this will overcome the difficulty which department was having that sometime when the return has been filed belatedly 143 to notice was not given.

[00:35:03]So we were challenging that your assessment is bad in law because I have filed a return. Now it is being said it will not be deemed to be a return under section 139. Now I p a question. It is it does not say that return will be invalid.

[00:35:21]It sh not be deemed to be a return under section 139 which means that assessing officer will be able to take cognizance of that return that's another issue another challenge I believe which will still to be tested because this provision was introduced in 2024 will only act only and that's I think the next issue will come up on that part but now this makes it mandatory for SSE the moment he receives is 148 notice within the time prescribed he should file the return on that part on that issue. This is 148 this is daily. Now coming to this time limitation.

[00:36:05]Now time limitation has been wavering over a period. Some of my friends of old days or of my age may be knowing it that earlier limitation was used to be 16 years. At one point of time it was 16 years. This was reduced to 8 years. Then it was reduced to four years, 6 year and flip-flop has been going on on that issues. But when this finance act 2021 which has made the major amendment and change the scheme of 147 to 151 the period was reduced to 6 years. Two block was made 3 years then six year income less than 50 lakhs then 3 years more than 3 years more than 50 lakh 6 year.

[00:36:49]Now in 2024 again the revamping has been done and now it is 3 and 5 years and we can read this and then look into some of the issue which may arise.

[00:37:00]Time limit for notice under section 148.

[00:37:03]No notice under section 148 shall be issued for the relevant assessment year.

[00:37:08]If 3 year then 3 month 3 years 3 months have been used mainly for the purpose of meeting the challenge of uh giving the period of 148 A1 inquiry when you assessing officer issues notice you submit a reply and he passes an order.

[00:37:24]So no notice shall be issued if 3 year and 3 months have elapsed from the end of the relevant assessment year unless the case fall under clause B. And if three year and 3 month but not more than five or 3 months have left from the end of the arrangement year unless the assessing officer has in his position books of accounts or other document or evidence related to an asset or expansion so and so at 50 lakh or more. Now most important is there are two part to section 149. Before reading 1491, one should read 1492 because 148A will come first and then 148 will come. So now it says no notice to show cause under section 148A shall be issued for the relevant assessment year if 3 years have allowed from the end of the relevant assessment year unless the case falls under clause B.

[00:38:21]If three year but not more than five year have elapsed from the end of the relevant assessment year. Unless the income chargeable to tax has escaped assessment as per the information with assessing year amount is likely to amount to 50 lakh rupees or more.

[00:38:38]Meaning thereby for the purpose of issuing 148A if the allegation is 50 lakh or more than than 3 years and if relegation is less than 50 lakh then it is within 3 years. Now coming back to issue 148A is required to be issued in these circumstance. Now you see in out of these six these are the six cases where 148 for the purpose section and section this is the where information will be there and then you will see that 148 is required to be issued only not in the cases of where 135A is applicable. So this is not required 135 is to be issued. So now in case a person has not received 148A notice by 31st March and period of 3 or 5 years have elapsed. So 148 where 148 is applicable proceeding cannot go on and reopen. But in case the issue is of 135A and then 135A for that 148 A is not to be followed straight away 148 can come with approval. So meaning thereby here it will get three year 3 months and five year 3 month but in other cases it will be five year and three year because extended period will not be available because you have to follow the process of 148A and 148 limitation is clearly here stated that no notice can be issued. Another important point which need to be noticed is that while issuing 148A notice all that assessing officer requires is unless the income chargeable to tax at per 50 lakh at both. Having said so, having got the reply in the 1483 order, he has to make out a case that 15 lakh or more income has escaped assessment. beyond three years and he has information in his possession, books of account or other document or evidence relating to any asset or expenditure or transaction or entry which show that income chargeable to tax has escaped assessment. I will request my friend to take a note of these two provision.

[00:41:15]Initially issuing 148A all he has to set in in escape assessment is 50 lakh or more. But while after examining the reply he has to reach a finding that he has material possession that this income is is because of the books of document and etc where income has escaped assessment is 50 lakhs or more. Now you will ask me how does it make a difference? It does make a difference.

[00:41:46]Meaning thereby there is some tangible material in his possession which indicate that what you have stated in your return what you have done in your return is incorrect. Your expenditure is not genuine or something is not corresping or your whatever evidence you are filed that may not be correct. But issue like exemption, deduction which you have claim or which are legally debatable issue they cannot be subject matter of repra beyond 3 years because it cannot be said that he has in his possession books of account or other document or evidence related to any asset on expenditure or transaction or entry which show that income chargeable escape because a junction in case you have claimed under any provision etc that cannot be a subject matter of this on that part. This is important thing which we need to notice it. Now another thing which is important is under the present act of 1961 there is no explicit provision that 148 cannot be issued within the assessment year. Now in the new act a specific provision has been part if you can see on the right side the green part no notice under section 280 shall be issued within one year from the end of the tax year. So end of the tax year within one next year is the assessment year. Tax year is the previous year and next year is the assessment year. So it clear explicitly said that in case your uh financial year is 26 27 assessment year will be 2728 in that cases that notice cannot be issued because you have to file the return by July August or October or December and then you have a 3 months period window now with the amendment to revise the return after paying certain charges etc. So that's also a benefit.

[00:43:37]Another change which you can notice is since assessment year has been substituted with the tax year and tax year is act equal to previous year. So three years have become four years and five year have become six year. This is the change which you can see on the left side as well versus the right side on that part on that issue.

[00:43:58]Now this is some of the slide which I need not spend time on that issue that uh how to test it last date of issuance not for regular scripting and reassessment proceeding for different assessment year. This this table gives an idea that at what point of time he can give or give on that issue.

[00:44:17]Now this is another change which I think before I coming to this issue I let me come to uh now saying approval. Now this is this is going to be another controversial issue which continue to haunt the department as well as the As you know that in 2024 by way of a I will say simplification etc. Now they have earlier there used to be provision 1511 and 1512 approval within 3 year within principal commissioner beyond three year with the principal chief commissioner.

[00:44:57]Now it says approval will be from the joint commissioner irrespective of the three year of high. So the they have clearly stated that this approval will be 3 years, 5 years or that basis. But this does not create a this will create another problem. If I come to this is section 152.

[00:45:26]Now this section 152 called out an exception. If you will look at this because it looks to be a simple mechanism but section subsection three and four are relevant. Now say where a search has been initiated because now new scheme new provision of 2024 of 148 are applicable from 1st September 2024 period is 3 years 5 years approval is from additional commissioner or joint commissioner. So in case a 148 proceeding is being initiated after 1st September the this new procedure which I have explained will be applicable but there are two exception which has been carved out. One is very relevant. Second may not be so relevant. Subsection three, if you can read it out, where a search has been initiated under section 132 or acquisition is made under section 132A or a survey is conducted under section 132 on or after 1st April 21 but before 1st September 24th, the provision of section 147 to 151 shall apply as they stood immediately before the commencement of the pool. So meaning thereby as you know that post 1st April 21 during this period such cases were also covered in 147. So meaning thereby you have to issue 147 149. So wherever a search material is there etc then of course this old provision of 21 to 24 will be applicable and the major issue was that under the this 21 to 24 mechanism approval beyond 3 years was from principal chief commissioner and be within that principal commissioner. So meaning whereby where 148 notices are being issued even after 1st September 2024 because information and material is consequent to a search. Now the old act 147 151 will be applicable provision and approval has to be obtained from the principal commissioner or chief commissioner and in case approval has been obtained by from the joint commissioner etc that approval will fail. Secondly, it is now mandatory to follow that mechanism. processing officer cannot say that I will adopt the new because there is a mandate that this section will be applicable and he will not have a choice that I will not follow this mechanism on this and accordingly wherever there is a allegation in respect of a search carried out between 1st April 21 to 1st September 2024 and notice under section 148 is being issued thereafter Assessing officer will be duty bound to say it is a search case. It is a double sword. Assessing officer on this basis get an extended period not limited to 5 year but it can be six and 10 year depending upon the one here because 153A and 153 C gives an extended period. But another challenge here is coming up is now scope of this section subsection three whether this will be applicable in respect of a assess who has been searched or will also be applicable in case of assess who has not been searched but material has been found. Now in case the re of course a person who has been searched there can be any no doubt because it is specifically mentioned and assessing officer can always say 147 151 old will apply under the old provision of 149 I have a judction of 10 year in because of 153A gives me 6 year and 10 year but in case of other person 153 C will be applicable in that if that is the case then he will have an extended jurution over 10 year But with the approval from the commissioner or chief commissioner as the case may be this is another area which is there subsection four as I said not it only says it was a I believe a sunset clause that where a notice has already been issued 1483 that will continue to be governed under the old provision of the section on that part on this issue.

[00:49:48]Now, this brings me back to 150. This 150 gives you gives an additional uh leverage to the revenue. If you look at that, this lifts the limitation of section 149. Notwithstanding anything contained section 149, the notice under section 148 may be issued at any time for the purpose of making an assessment reassessment or recompetition or to give effect to any finding or direction contained in an order passed by an authority in any proceeding under this act by way of appeal reference or a court in a proceeding under this act or any other law. Then it say the provision of this section shall not apply in any case where the assessment or reassessment is referred in that section related to an assessment year in respect of which an assessment occur could not have been made. It says the the order which is subject matter of appeal in case on that day itself the limitation was out then it will not be applicable on that part. So now looking to the time constraint I'm not spending much time though there is an amendment which has been made here in 150 uh extend the period of limitation and lifting the 149 periods. I am of the view that whatever probably has been uh tried to made out in the amendment I think revenue may not be able to take advantage because this section subsection 3 is important for the purpose of subsection one notice under section one shall be issued within a period of 3 month from the end of the quarter in with a certified copy of the order of the authority as the case may be received by the judicial principal commissioner or commissioner. So now again it puts a limitation that even when you want to invoke section 150 lifting the limitation this window will be available only for a period of 3 months from the date when the certified copy is received by the principal commissioner or the commissioner on that it does not mean that 15 you can invoke at any point of time the department has to be a little bit quick on on that part. Now this brings me uh bring me to section 1518 jao versus fa I think let's me let me talk now if you look at this this is section 1518 this was enacted in 2021 the central government may make a scheme by notification the official budget for the purpose of assessment or recomportation rejection so and so eliminating the interface optimizing utilization center for a giving affect made under notification so and so. So this was fine 151A. Now this was the notification which were issued on Jaw versus F. If you look at this in this scheme, unless the contracts otherwise require act mean the income tax act, automated allocation means an elaboration of casing by using suitable technological tool including artificial intelligence and machine learning with a view to optimize the use.

[00:53:15]And then scope of the scheme. For the purpose of this scheme, assessment of reassessment or recmputation resection 147 of the act.

[00:53:27]Issuance of notice under section 148.

[00:53:30]This is very important. shall be through automated allocation in accordance with the risk management strategy formulated by the board as referred to in section 148 of the act for issuance of notice and in a faceless manner to the extent provided in section 144b of the act as well. So if you look at this scope of section was two assessment and issuance of notice both was covered. Now on that basis the court has taken a view that this scheme having been notified late before the parliament. The notice has to be issued through automated allocation only and that way notice issued by the jurisdictional assessing officer having not been issued through automated allocation were bad in law and all were quash. Now in that became a word chao versus cow.

[00:54:26]Now if you look at this the new amendment which has been made in section 151a where is 151 147a. This is now to overcome this challenge which courts have question order. This is the amendment which has been made in section one by inserting a new section 147. Notwithstanding anything contained in any judgment order decree of any court in section 151A or in any scheme frame there under for the removal of doubt. It is hereby clarified that the assessing officer for the purposes of section 148 and 148 shall mean and shall always be deemed to have meant to be an assessing officer other than the national assessing officer. So meaning thereby it nowhere says that jurisdictional assessing officer shall be the assessing officer.

[00:55:26]It says national faceless assessing officer will not be the assessing officer. meaning thereby the fo will not be the assessing officer. Our contention is first this amendment is arbitrary retrospectively you're doing it and the second point which is important to come back here on this notification is the scheme nowhere says assessing officer versus it say the allocation has to be automated meaning thereby even if you want to do give a case to an assessing officer who is not an assessing officer within the meaning of national facessing officer. Such assessing officer cannot be judal. It has to be by computer to whom it will go. So 1481 notice when you want to give over it should be randomly given and this has not been overcome by this amendment. So the challenge is this matter came up before the Supreme Court and that's why the Supreme Court has referred the matter back to the various high courts on challenge the constitutional validity of the amendment or even otherwise other contention. So my suggestion to my all friends who are arguing before the various high courts etc is that the focus should be that the word automated allocation has not been deleted and cured and this issue is squarely covered if you I I will suggest each one of you because you are all tax expert tax practitioner reading judgment that in the case of hexaware the Bombay high court has threadbear examined the issue and exact ly what has been done in amendment was the replies submitted by the revenue before the high court and high court has answered rebutted each and every issue. I can just take you out whether this is the issue whether the judicial officer can issue notice under section 148 158 mandate faceless jao have no authority to issue 148 notice read with the research mandate all notice must be issue to the faceless by once parliament elected and cities notify the statut meand so and so and so and what view has been taken by the Delhi high court TPS builder against is I will suggest if you read this judgment. It nowhere addresses the mandate of section 151A as well as the notification issued there. it has gone on other or I I will say other parameter which were not relevant to decide the issue of 151A and that's why we say that the high court judgment probably is not a uh right judgment and other judgment high court which are in favor are on the right part on that issue having said so now I think looking to the little time I may just rush through Now you will be having one question in your mind. Now what happens to how the procedure is going to be followed after the new act has come into force from 1st April 2026 and on that part you need to read out the difference when 1961 act was enacted and the 1922 act was repealed. This is the section 297 in 1921 act and that makes it it say Indian income tax act 1920 is hereby repeal not presenting the repeal of the Indian income tax 1920 or two where a return of income has been filed before the commencement of this act by any person for any assessment year proceeding for the assessment of that person that year may be taken and continued as if the act had not been passed where a return of income is filed after the commencement of this act. Otherwise than in pursuance of a notice of section 34 that was 148 of that year of the repeal act by any person ending on so and so or any earlier the assessment of that person shall be made in accordance with the procedures specified in the new act.

[00:59:49]Any proceeding pending on the commencement before effect will be continued under the old act.

[00:59:56]and then 148 where in respect of any assessment year after the year ending on 31st March 1940 that means what 1940 34 act and then 61 a notice under section of the repeal act has been issued before the commencement of acting in persuance of such notice may be continued and disposed at had not been passed and any income chargeable to tech that has escaped assessment within the meaning of that expression in section 147 and no proceeding under section 34 of the repealed act in respect of such income are pending on the sale it will be under the new act.

[01:00:36]So meaning there it said all proceeding which have been initiated before 31st March 61 they go under the old and thereafter under new. Now surprisingly in the this 2025 act it say that all provision of old act will continue to apply.

[01:00:55]So meaning thereby assessment year two up to 202627 will always be assessed under the old act including reassessment. So be mentally prepared that 1961 act whichever I have explained to you will continue to be applicable at least for next 6 years. So 1932 you assessing officer will have a right to issue a notice for 148 on 2627 and surprisingly when assessing officer will be issuing such notice there can be two assessment year assessment year 26 27 and 2728 there will be two different notice one under 148 one under the new law this se action this is going to pose I believe a herculean challenge on that part that's a issue which will come up on That's on this issue. This is just my analysis. I can skip on the part on a time or time.

[01:01:52]These are some of the issues which I have touched upon reason to believe AO conducts inquiry with prior approval. No mandatory pre-notice inquiries. These are the changes which is there.

[01:02:03]And then these are a few juristprudence on the issue of what is the reason to believe and the various judgment on coming on that part. information received black what is the meaning and whether whether information should be an information per se it cannot be the basis for reopening which I said in the beginning on that part now this is the need 1432 requirement in view of the new mechanism on that part uh now can a reassessment survive where notice under section 140 either issued or served beyond the time limit of 3 month from the end of the financial deal with written is filed. So where return is filed within time limit notice was not issued at all or not issued within the prescribed time limit incurable defect it goes in that case here also this goes this judgment go now return filed within time limit notice issued but not served in such cases this challenge can be only when you have raised an objection before the assessing officer and now with amendment if a return has been filed beyond the 3 months that return will not be deemed to be a written in 139 9 to 139 and that obviously 143 requirement will not be there. Now coming to the common pitfall in 148 proceeding. So if you see the left hand side uh there is a known supply of complete material. Sometimes assessing officer does not supply the material. He does not give you sufficient time because 7 days time is minimum required under the SOP and as well as 144B known application of mind when he passes an order 148 AD earlier now 1483 the order merely reproduces the notice these are the common pitfall failure to obtain prior approval. So approval is required to be obtained before issuing a notice and mixing of assessment keys and in order to mitigate this and how to handle this always begin by examining whether the information fall within the defined category of explanation. You need to ver challenge vague or omnibus information. The information must have a specific and direct access with the alleged escapement of income. Cross reference original assessment of court to demonstrate that all relevant material was already available and considered during the original proceeding. Raise limitation and section objection up front. These are judction and go to the root of the matter. Submit a detailed paragraph wise reply addressing each allegation a well structured response significantly improve the odds of them.

[01:04:31]But one caution don't provide additional information on the basis of which he can make out a case which was not good.

[01:04:38]Limit the case to the extent to which the issue has been raised in 1481 notice. Sometime in our eagerness we provide much more information and then he says this information and he makes out a case against this and then issue arises uh information supplied to you and material available with the assessing officer. your reply itself becomes a material and then he can use it against you.

[01:05:03]Now procedural defense verify jurisdiction post examware confirm whether notice was issued so and so check limitation examination verify 148 compliance confirm information validity there can be issue of change of opinion no escapement borrowed satisfaction no travel back constitutional challenge so and so on that part of the issue this is one issue which is I think still wide open you may be knowing the jet airways We are assessing of whether in the sense of the uh addition on the basis of which the assessment was reopened can any other addition be made.

[01:05:42]uh there are judgment from the Bombay High Court and other high court jet airways, Delhi High Court and vacci laboratory that uh in case the basis on which the assessment was reopened that doesn't survive then any other cannot be made on the applying the same test under the new law also high court in ATS infrastructure has also taken a view that it cannot be done though I will still endorse that there is some challenge in the language because earlier in 40 several also that word is missing but still we are of the view that the very basis for holding that in case original assessment was opened was bad then other addition cannot be made.

[01:06:25]Interestingly, Dilli High Court recently in the case of Walmik Taper has gone to that extent. Even if the sessing officer has made addition in in respect of the issue which was the subject matter of reopening but later on that addition stand deleted then then even then addition uh other addition will not survive and that addition has to go. This is very interesting aspect which has come up on that basis of that is these are some other slides which I have talked parameters extended time for set course etc. I can just own that. Now these are the expired limitations. Some of the limitation issue which has come up and particularly in the light of that once uh a time period has expired the new amendment cannot extend the period for that purpose on that issue and this issue has become a little bit relevant here. Here in this cases the approval under section 151 may be invalid in following cases of assessment year 1516.

[01:07:32]If the notice under section 148 issued on or before 31st March 21 that is in March February then the approval under section 150 would have been obtained from PCIT on the reasoning beyond four year. However due to TOA the limitation of joint admin grants should extended.

[01:07:51]Hence approval obtained from PCIT has been held to be bad in law. This is very interesting issue. If you are having 15 16 assessment a year and that assessment has been opened on 31st March 21 when tla was applicable then under the old law assessing officer because 1516 time barring by 31st March 24 years and that period having been extended to the approval has to joint additional commissioner was having still time to grant an approval and PCI was not having if the notice issued on or after 1 then Reopening at quest upline raji punch 1516 the revenue has given a concession so 1516 in any case either under code same fate happened to 201819 if the notice has been issued on or after before 31st March 2022 that within 3 year and order of has been issued on April 22 then approval would have to be obtained from PCIT as extended period will not be available.

[01:08:57]These are two judgment which are applicable on that part of the issue.

[01:09:02]These are few case which I need not discuss. Authentication of the notice.

[01:09:06]There are some judgment which have said in absence of signature on notice on 148. Absence of signature in 151 approval is not good but a technical issues are there. Delhi high court probably is not taking a favor on this band on this issue.

[01:09:24]Now these are some of the issue key holdings on the issue notice issue under older deemed to be sha notice so and so that's a say ashagaral judgment I need not repeat on that issue this is the table which given by the yes in the Rajiv bansel case and that's why one can take the benefit of this toa is not applicable where to is applicable on that part then this is also this gives answer to the this is a tableated form of the issue of how to calculate the surviving period in in the light of the Rajiv Bansal judgment on that issue. Now when I have covered this part of the assessment, I need to touch upon a smaller issue that now with the amendment made by the finance act 2026, a window has been opened to file an updated return even after 148 notice has been received. I hope some of my friend may be knowing on that issue that in case you have received a 148 notice earlier when a proceeding was initiated you were debarred from using this updated return. Now updated return has been allowed and if you look at this 1398A proviso this is the eighth proviso provided also that an updated return may be furnished by a person for the relevant assessment year in pursuance of a notice under section 148 within such period as specified in such not case the assess shall be procluded from filing the return. So instead of filing a regular return, one can file an updated return. And what you need to do is where an updated return is filed in pursuance of a notice under issue within the period specified the additional income tax payable under subsection 3 shall be increased by further sum of 10% of the aggregate of tax and interest payable.

[01:11:15]So all you can get out of this by paying 10% and on that basis we just made out a slide that what can happen in case this situation comes up. Now take a case assessment year 202023.

[01:11:31]You have declared an income of 10 lakh rupees 1 cr rupees and your income escaped is 10 lakh rupees. One is you file an updated return voluntarily say by 31st March 2026.

[01:11:46]Had you filed voluntary updated return before issue of 148 notice you would have been required to pay assuming tax rate is 36% 3A 60,000 rupees interest 234B starting from 1st April 22 to 31st March 26 48 month 1 lakh 72,000 and then 60% of this in view of 139 8 with 140B to 8 lakh 52,480 but in In case you have not filed and you have received 148 notice then you can still do it by paying 85,248 extra and you can get out of this. This is the mechanism. Interestingly there is another provision which has been introduced by the finance act 2000.

[01:12:33]Earlier there was immunity from imposition of penalty under section 278.

[01:12:39]I hope you are all aware in 27A penalty has been now split into two part. One is where under reporting of income and then second is under reporting due to misreporting.

[01:12:51]On under simple under reporting penalty is 50%. And on misreporting it is 200%.

[01:12:58]However in case of under reporting 50% penalty can be waved off in case you accept the assessment order you pay the taxes don't file an appeal and make an application to the assessing officer that I want to avail this benefit 50%.

[01:13:13]Now finance act has gone a step further.

[01:13:16]Even in the case where there is allegation of what we say misreporting of income where penalty is leviable at the rate of 200%. You can get immunity from penalty as well as prosecution by paying 100% extra tax. And on that basis if one want to avail this scheme in the same example if you have filed the return voluntary you would have paid 9 lakh 372,000 you if you don't avail and immunity scheme you have not filed you would required to pay 12 96,000 but if you avail immunity under 270A and you pay on 31st March 27 go one year more because 26 6. You have received a notice 148.

[01:14:06]You have not you have filed the same return. Assessing officer will complete the assessment order by 30 March 26 and you need to pay the tax by 30th April. You will be paying this tax interest and this will not be required to pay additional because you are not availing 1398A.

[01:14:26]You will be required to simple pay 100% penalty which will be equal to 100% tax 9 36,000.

[01:14:33]So income reassessment can be now I think one can handle it out in case one has taken a chance under reporting misreporting still one can get out of on that issue on that part uh satas should I continue or like because there are issues that now just try to take it on 153 a c etc on that issue >> I think I think jens you can continue for some more time and then we will have the question answers some issues are observations are there of members and maybe you may complete and then we'll take up the this other issues.

[01:15:11]>> Thank you sir. Thank you. Now this is the change which just I by the leg slide I want to show this is any this is regarding the search method any assessment pursued to search action initiated on or before 31st March that the procedure was 153A or 153 C April 21 to 30 31st August 2024 the search being carried out then it was 148 which we have discussed about but there some ramification we have not discussed out post 1st September the matter has been taken out from the 148 and now there is a window in my normal discussion I say search otherwise is bad for a person but those are lucky who where search has been carried out after 1 September but not before 1st September because those where search has been carried out before 31st there is no escape route but after 1st September there is escape route is as good as aministry scheme just pay 60% tax and get out of it. This is the provision which is there on that issue on that part. Now some controversy has arisen uh on on consequent to that also one controversy which is coming from Madras High Court is that after 1st September 2021 the search provision having been converted into 148 proceeding. So even in 153 C where assessing officer records his satisfaction after 1st April 21 that date will be deemed to be the date of search and if that be so that being the deemed date of search obviously the search provision of that day that means 148 will be applicable and 153 C provision will not be applicable I think that's another area which has come up on that now this these are then another area Controversy is going on in the search matter is that during this period from 1st April 21 to 31st August 2024 in view of the explanation there was a deemed in information that income has escaped assessment and 148 notice was still required statement required to be issued and issue as a reason what happened to the year before the year of the search.

[01:17:32]Year of search normally 1432 can move forward but what happened to the immediate before year which already was going in scrutiny 1432. Now number of judgment has come up from the various branches of the criminal starting from Chundigat in the home life and then Balro coming from Delhi Aljana and then I believe Montage also coming from here where now the terminal has held that in all such cases the assessing officer was duty bound to follow the procedure of 148 and he has completed the assessment under 1433. Those assessment are bad in law and liable to be quashed on the and reasoning given is also that is that in 1433 the uh the approval which is required and mandated in 148 is not there or that that has again become a challenge also. Now there have been challenges also where assessing officer has written that from time to time I have taken an approval discussed with assessing GCIT.

[01:18:34]The courts are taking an adverse view that during the assessment in case the assessing officer is taking the guidance and approval from the joint commissioner then is an interference in the power of the assessing officer. Section 119 mandate that nobody can interfere in the assessment proceeding. Obtaining a approval after he has made up his mind and carried out inquiry is different and time to time in intervention by the assessing of joint commission additional commissioner is not permitted under the law. That's again tax but it is a say I say contrary to what 153 that issue is there only.

[01:19:15]Now the new mechanism applies to on or after 1 Sep September 2024 block period covers six years and plus current years and separate from regular assessment and tax and penalty 60% straight away on that part only and this gives a window because now under the this amended law in case when you are required to file the return and whatever you declare in that return you just pay 60% all your penalty get waved off. So this gives a very good option and if you have looked into the form which is written form which has to be filed is very detailed year to ear you have to tell the source you have to tell the nature of income and you have to tell the application so you can take an advantage. I say by and large it is just a revival of the settlement procedure the way we used to make an application for settlement that this is the income earned this way and that way and how it has been applied.

[01:20:08]This gives a very good window for person who has been cert. So there are some relevant issues which I just take it out change of goalpost. Now court have taken that 148 A1 notice which come which makes an allegation assessing officer a duty bound to confine to that only he cannot make out a new case in 148 A3. So these are the four judgment from Delhi High Court itself. ATS, Banyan Real Estate, Usharani Gazar and Catchy Pro where the court had discussed elaborately what what is the meaning of change of golf. Assessing officer cannot set up a new case in 148 A3 as against 148 A1 allegation.

[01:20:48]Then is relevant date to be considered for date of receipt of direction by AO.

[01:20:52]So these are the issue where on that issue for the purpose of this sum gial is very important for that purpose which lays down that it issue what is the meaning of issue issue means when it goes out of the hand of the assessing officer and in case an email has been sent it is only when it is reaches the assess that will be that issue otherwise on that issue date of northeast under section 148 to be considered deemed date of search for non- search person so this is also Another issue which has come from the Delhi High Court where it has been held that what happened because now in between the period 1st April 21 to 31st August there is no concept of 153 C. But now the issue arises is what will be the deemed date of search. So as to apply the oneplus 6 year period or 1 + 6 + 10 for that purpose the delhi high court has said that date of notice under section 148 is to be deemed to be the date of search in the case of other person.

[01:21:52]Now section 150 post bill by observation because department has been making out a case that even if the CIT appeal or something not down when saying there is no incriminating material but with a direction to that for and so the court has rejected that contention they say nothing doing in a visar build there is no such finding or observation recorded that you can initiate reinitiate the proceeding within the beyond the limitation period. Section 152 to be considered based on which order date.

[01:22:23]Meaning thereby 1502 say order order is not of the assessment order. Order appealed against where this issue has a reason that is the date valid date which has to be applied on that reopening based on risk management strategy. The court has these are the few judgment which need to be read. DVIA capital is the one basic judgment where the court has said it is not simply the information information must be such which indicate yes income has escaped and another good judgment is Dr. Matthew Jerian which has come from I Chennai terminal that's another very good I think Madrat high court I believe that that's a good judgment which has come upon constitutional validity under consideration so these are the issue reopening merely on the basis of RMS so that question is still pending with the Delhi high court and dsha holding where we say reopening in the case of a known person merely on the basis of information if even if information is not incriminating Now these are the issue of change of opinion under new regime. So the court because one of the view which are being argued by the revenue council is that under the amended law change of opinion which used to be 147 provisor and even otherwise is no more relevant but the courts have held in no change of opinion still relevant. If an issue has been examined on the same issue assessment cannot be reopened. These are a few judgment which have been there. Now surviving period of course uh one was the issue surviving period and this issue became more relevant in the case of Ram Bulram because Rajiv Bansal has given a way in how the period has to be calculated but then it was being contended by the in the high court that in view of the provisor to 149 where power is assessing officer get an extended period of 1 month from the end of the month in which reply is submitted the court has rejected that they said No 1491 will be subject to this overall limit of 148 that's that you cannot get an extended period reopening on the basis of high value transaction reported in assesses on record cannot that's the same issue in in case it is not incrementing you cannot do it reopening based on investment by foreign company this is anglonic case judgment from Delhi high court where the court has no you cannot reopen based on the investment by a simply because a foreign company has made an investment in energy.

[01:24:55]So now I think we can just go back and uh look into 6:30 we can just spend time.

[01:25:04]>> Thank you Jansab. Uh Shalpa Shalpa Gupta I request you to kindly read the questions which are there in the chat box so that Jens can reply the questions.

[01:25:15]>> Good evening sir.

[01:25:17]>> Good evening. Good evening >> sir. Thanks a lot for such an insightful session. Sir, everyone first of all everyone is asking for PPT including me.

[01:25:27]I will share I will share share sir please ask the office to share with Gupta sir or shas sir sir whatever sir um with your kind permission I'll take the questions of part participant sir sir first question is from Sanjay gi uh he is asking what is pos position after ashi chadra chase assessment year 1617 income more than 50 lakh and notice was issued on 246 621 >> which whose question is this?

[01:26:03]>> Sanjay G.

[01:26:07]>> Uh sir it's in a question answer box.

[01:26:11]>> Yes. What is the position of Rasharal case assessment 16 income more than 50 lakh and notice were issued on 24 >> six to 21 question is not complete is not given.

[01:26:25]No answer. No, I can answer. I I'm getting it.

[01:26:30]>> Question inside.

[01:26:32]I I believe 1617 you see problem is 167 50 lakh period will get an extended period but it will fail on the approval because 1617 approval would have been taken from the PCIT which he should have been taken from the PCCIT as income are there otherwise it will fail because survival on that and it will fail also on the surviving period.

[01:26:56]>> Yes sir.

[01:26:57]>> Because notice is on June 24th June 21.

[01:27:00]>> Okay sir. So sir the next question is from Kabir Karat. I wish to inform the investigation officer inspected bank regarding a person who purchased a property in assessment year 2323 for rupees 10 lakh but not filed the ITR till today. Whether the assessing official officer can make an assessment against that assesse I think it is time barred. Am I correct sir? I think the bar is still three years from the end of the assessment year.

[01:27:33]>> Where is this question? Who has asked this? Where is >> sir? Kabir Karad. Kabir Karat.

[01:27:41]>> Sir, the third question on fourth question.

[01:27:52]>> So I'll read again sir. So he is asking These are in question answer box.

[01:27:59]>> These are in the question answer box, sir.

[01:28:01]>> Question question answer box.

[01:28:02]>> Just just a minute. Yes. I wish to inform that the investigating officer regarding a person had purchased a property in assessment year 2023 for 10 lakh but not file the income till today.

[01:28:14]Whethers can make an assessment against the I think that no in case till 31st March 26 year the judction.

[01:28:22]If a 148A has been issued before 31st March 2026, then he has a judicial.

[01:28:30]>> Okay.

[01:28:30]>> I believe that's the case because 22 23 3ear period will expire on 31st March 26.

[01:28:38]>> Yes sir.

[01:28:39]>> I think he has also he has himself made a comment. I think the bar is Yes sir.

[01:28:44]>> Three years from the end of the >> next.

[01:28:46]>> No he said I think it is time bar. No it is not time bar.

[01:28:50]I think that I think the bar is still three years. is still in case he has received 148 A1 notice before 31st mark by 31st March then it is within time if it is beyond that then it's >> 30% then it's not >> sir uh so the next question is from C at Puri if the notice has only to be issued and serving has been done away with how will the associ know when the 30-day period expires No service has not been done away with.

[01:29:31]I will not say service has not been done away with because if the in case you are able to show that an issue that it was never served then there is problem on a department because no only thing is that earlier there was that there is a mandatory requirement service when in any case has to show demonstrate only thing is in case it has been issued properly addressed then probably that will be addressed on the issue.

[01:29:55]Okay sir. 30day period means which 30day period I believe filing of return. So obviously you will get to you will see now as I understand from the department procedure and I think we need to be little bit more vigilant about this. Yeah.

[01:30:18]>> Uh as per my information what I have been told that the moment the notice is put on the portal a immediate SMS or this realtime alert is also sent to the mobile number registered with the department.

[01:30:35]So service is complete the moment no it is put on the portal and the real time alert is there. So one need to be careful about that also >> otherwise he has to file the condemnation.

[01:30:49]>> Then next question is from DH Kumar Agraal. A civil subcontractor has shown turnover of 5 kores by executing the work of contract and payment received through banking channel after deducting proper TDS and subcontractor also files GST return etc. case was assessed under section 1433 and HO invoked section 69A on all amount received from contract that is 5 K. AO says that assassi could not explain properly that in actual businesses executed AO discarded the business profit and rejected books whether AO can invoke 69A.

[01:31:33]I believe this is a uh issue which is not related but on text point I can answer this question. See this is a some challenge with the revenue on that part.

[01:31:44]Now addition being made on in respect of disallowance of purchases by invoking section this uh 68 or 69 etc. I believe that though those sections 69 C particularly I believe these are these are not good signs and this can I think you can run into difficulty. Now 69A in my opinion cannot be invoked and day before I was carrying out a search and I could lay my hand at least on two judgment which I can share where the court has held that at 69 is bad and the assessment has been quashed on that part itself because because in this case the allegation at best can be that you have unexplained credit this is not your income and 68 could have been involved.

[01:32:35]So it cannot be that whatever is recorded in the books of account cannot be considered to be unexplained investment or unexplained money. So 69A in any case should not be applicable.

[01:32:46]>> Okay sir. Uh sir um uh this is the question from Amit. Uh sir what is your view in case of Hexawware technology what will happen further?

[01:32:59]Sorry, he's asking the fortune.

[01:33:02]>> Hexav has two three connotations on the on the issue of Yao versus Po. I think I'm we are reason we are reasonably confident that we should be able to meet the challenge of the amendment because the very basis of on the hexavar judgment has been delivered by public high court has not been done away by this amendment.

[01:33:29]Uh sir, next question is uh sir as notice under section 28081 is to be issued within one year from the end of the tax year. Will this result in past processing of ITR under section 1431 by CTC?

[01:33:45]>> I don't think this was the this was the meaning which I said it. It only said key within one year from the tax year will not be issued. Notice will not be issued.

[01:33:57]280 281 are talking of 148 these are 148.

[01:34:03]If I if I see section 28 of year of the new act it only clarify that it will not be issued 1280 is replica of 148 and 281 is replica of 148A if I'm correct.

[01:34:28]So it only say if you I think it has been wrongly understood by friend uh that it on the contrary it says the 140 28 281 notice will not be issued within one year from the end of the tax year.

[01:34:44]So meaning thereby you will not initiate 148 for that purpose you have 1421 par or 1432 in case return has been filed.

[01:34:55]>> Thank you sir. Sir, one more question is there from advocate Mahendra G. It's a a big question based on the papers found during the search carried out on 5th February 24 at uh some XY Z company alleging escaped income of 11.25 lakh in assessment year 1718 and rupes 39 lakh in assessment year 1819. The AO issued a notice under section 148 to the assess for assessment year 1718 on 26th March 26.

[01:35:30]Okay. Why finance actu 24 that is with effect from 1st September 24th the following amendments have been made. Now the issue in the present case is which law will apply that is the law on date of issuance of notice that is 24th March 26 or the pre- amended law will apply in the light of section 1523 and 1524 >> I I don't think there is any any any change this is the issue I I I did discuss no see in case a search has carried out during the period from 1st April 21 before 31st September 24 then the provision as they stood before the amendment will be applicable. Now there is a controversy going on whether this provision which I explained will be applicable to the search person or a person other than the search person.

[01:36:27]>> Search person. So one implication is that this will be applicable on the person search and a person other than the such person both it will be applicable on that part. So in that view because he's a person other than the such person. So there is a challenge to him. Yes it will be applicable and if it is applicable on that basis then this notice approval has been obtained from PCCIT and this is falling within the extended period of 10 years that will be applicable but applying the judgment of justice Singh on on that issue. If a notice has been issued on 24th March 26th, so I believe satisfaction would have also been this will be deemed date of satisfaction. The search here will be 26 27 and when I go back 9 years because applying that judgment of uh August.

[01:37:19]>> Yes sir.

[01:37:20]And then this period I think which he's talking of probably may get out or even otherwise applying 153 C he may not get the extended period because it is less than 50 lakhs.

[01:37:36]>> Yes sir. Sir he's asking the next question from the same issue. He's asking whether section 1491A will apply to make the total of escaped income exceeding 50 lakh particularly when no notice under section 148 is issued for 1819.

[01:37:55]>> Whether 149A one will apply to make the total of a state income exceeding 50 lakh particularly when no notice is issued.

[01:38:04]When no notice has issued then how we can aggregate then he cannot.

[01:38:10]>> Yes sir. Also total income 11.29 + 39 is going to be 50 and more 50.25.

[01:38:29]Uh sir next question is for Manoj Kumar G. In case of a person other than s notice 148 being issued stating search took place in your case and then material found in search of ex person which pertain to or relate to you. What is the trait of such notice?

[01:38:47]>> Pertain or relate to the Supreme Court clarify that that has been clarified that yes pertain and relate. I think that scope the judiction will come. Now you have to see what the content of the notice and allegation.

[01:39:02]>> Yes sir. So he is asking again section 148 if return not filed in 3 months it will not be treated. I will I will if Manos Gumar is here I will oh I think you on webinar we cannot hear him now >> yes we can >> I would have loved to hear from him because so many questions coming from unless >> we have to take him on panel only can you allow him to give the webinars let us not file in 3 month it will not be treated under section 139 or if obviously the written will be ignored and then he will be passing an order on 144 only.

[01:39:50]>> Rohumar Kumar can unmute yourself.

[01:39:53]>> Unmute yourself.

[01:39:54]>> Unmute yourself.

[01:40:06]>> Let's move. Should I go to the next question by the way?

[01:40:10]>> Yes. Go. Go ahead. Go ahead.

[01:40:12]>> Uh sir, so the second last question is from Sabir G. I think that the assessing officer will assess the income under new and income tax act. I think he's giving the answer of Manoji Manoji's uh questions. He's giving the answer. So I'll go to the next one. Sir one question in the case where search has been made before 21 but assassi uh >> that search order and do not participated in assessment proceeding till date as he got the stay order. I want to know if that case goes against that how his reassessment been made in view of current position.

[01:40:53]See the law is very clear. When a stay has been granted by the high court from the date it is granted till the date it is vacated disposed of that period get excluded and he will have to travel back to the original proceeding under whichever section was applicable at that point of time will be applicable. So he cannot shift the position current position he will go back to the original position.

[01:41:17]So >> that's all in question answer box. I think if Manoj is there so he can ask himself do any other question please man sir there is a one one question hello are you able to hear me hi Janzab are you able to >> I'm able to hear you >> yeah yeah there is one question from Mr. who sent to me directly.

[01:41:51]>> Yes.

[01:41:52]>> Whether 148 notice can be issued on the ground that wrong TTS credit was allowed.

[01:42:01]I will tell you under the old law there used to be one provision on tax also.

[01:42:07]Fortunately and unfortunately under the amended law tax there's no such provision of tax on the issues.

[01:42:15]Now 148 I believe TDS credit cannot be because word used is income escaping assessment. Tax escaping assessment is not the word used. This is my common knowledge and common sense. Income escaping assessment not tax escaping assessment.

[01:42:31]>> Yes sir. Thanks. Thanks a lot. You have done very well. May I request my Kagra to extend a board of thanks please?

[01:42:40]Mr. Ardi Kagra please.

[01:42:48]Sir, today is a very fortunate day for all of us that that on this bakr day you have organized such a beautiful webinar nor Jun you Mr. GI BP Gupta S all are I congregate to both of you of selecting a very good subject and uh very good speaker. We have just listened the way VW on search and seizure and reassessment of VNG who have by his name he very famous and everyone knows him and he is the authority of this subject and you have organized today the Venji I'm very fortunate and I express my gratitude and to Jenji undoubtedly I have given a two days back I have talked with him and when I got the information that the North John is organizing webinar today. So I came to my good friend Jenji's house Jenji's office to hear on reassessment and thank you.

[01:44:02]>> Thanks my thanks a lot.

[01:44:06]Thank you.

[01:44:07]>> Thanks a lot JA. Thanks a lot everybody.

[01:44:09]Thanks a lot. Yeah, more than 200 delegates happy there.

[01:44:16]Thanks a lot.

[01:44:36]This is something out of the box.

[01:44:42]This is because it is an authoritative coin today. I think Thank you. Thank you. Thank you. It comes to an end. Meeting comes to an end.

[01:45:20]G.