LexUNION OF INDIA & ORS. versus RAJEEV BANSAL
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[2024] 10 S.C.R. 1633 : 2024 INSC 754 Union of India & Ors. v. Rajeev Bansal (Civil Appeal No. 8629 of 2024) 03 October 2024 [Dr Dhananjaya Y Chandrachud,* CJI, J.B. Pardiwala and Manoj Misra, JJ.] Issue for Consideration Whether after 01 April 2021, the Income Tax Act, 1961 has to be read along with the substituted provisions; whether Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act 2020 (TOLA) will continue to apply to the Income Tax Act after 01 April 2021; whether section 3(1) of TOLA overrides section 149 of the Income Tax Act; whether TOLA will extend the time limit for the grant of sanction by the authority specified under section 151 of the Income Tax Act; whether the directions in Ashish Agarwal will extend to all the reassessment notices issued under old regime; what were the requirements for issuing reassessment notice under section 148 of the new regime. Headnotes† Income Tax Act, 1961 – Finance Act 2021 – Whether after 01 April 2021, the Income Tax Act, 1961 has to be read along with the substituted provisions: Held: After 01 April 2021, the Income Tax Act has to be read along with the substituted provisions. [Para 114(a)] Income Tax Act, 1961 – Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act 2020 (TOLA) – Finance Act 2021 – Whether TOLA will continue to apply to the Income Tax Act after 01 April 2021: Held: TOLA will continue to apply to the Income Tax Act after 01 April 2021 if any action or proceeding specified under the substituted provisions of the Income Tax Act falls for completion between 20 March 2020 and 31 March 2021. [Para 114(b)] * Author 1634 [2024] 10 S.C.R. Digital Supreme Court Reports Income Tax Act, 1961 – s.149 – Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act 2020 – s.3(1) – Finance Act 2021 –Whether section 3(1) of TOLA overrides section 149 of the Income Tax Act: Held: Section 3(1) of TOLA overrides Section 149 of the Income Tax only to the extent of relaxing the time limit for issuance of a reassessment notice under Section 148. [Para 114(c)] Income Tax Act, 1961 – Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act 2020 (TOLA) – Finance Act 2021 – Whether TOLA will extend the time limit for the grant of sanction by the authority specified under section 151 of the Income Tax Act : Held: TOLA will extend the time limit for the grant of sanction by the authority specified under Section 151 – The test to determine whether TOLA will apply to Section 151 of the new regime is this: if the time limit of three years from the end of an assessment year falls between 20 March 2020 and 31 March 2021, then the specified authority under Section 151(i) has extended time till 30 June 2021 to grant approval – In the case of Section 151 of the old regime, the test is: if the time limit of four years from the end of an assessment year falls between 20 March 2020 and 31 March 2021, then the specified authority under Section 151(2) has extended time till 31 March 2021 to grant approval. [Para 114(d), 114(e)] Income Tax Act, 1961 – Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 – Finance Act 2021 – Whether the directions in Ashish Agarwal will extend to all the reassessment notices issued under old regime: Held: The directions in Ashish Agarwal will extend to all the ninety thousand reassessment notices issued under the old regime during the period 01 April 2021 and 30 June 2021 – The time during which the show cause notices were deemed to be stayed is from the date of issuance of the deemed notice between 01 April 2021 and 30 June 2021 till the supply of relevant information and material by the assessing officers to the assesses in terms of the directions issued by this Court in Ashish Agarwal, and the period of two weeks allowed to the assesses to respond to the show cause notices. [Para 114(f), 114(g)] [2024] 10 S.C.R. 1635 Union of India & Ors. v. Rajeev Bansal Income Tax Act, 1961 – Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 – Finance Act 2021 – What were the requirements for issuing reassessment notice under section 148 of the new regime: Held: The assessing officers were required to issue the reassessment notice under Section 148 of the new regime within the time limit surviving under the Income Tax Act read with TOLA – All notices issued beyond t
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