Article
Reassessment notices issued under old regime – An attempt to revive a dead law?
By Devashish Jain
The article in this issue of Direct Tax Amicus examines the question as to whether after the enactment of new reassessment law from 1 April 2021, the reassessment notice can still be issued under the old law till 30 June 2021 and whether the old law remains alive for such cases because of the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 and subsequent notifications. The article notes that the issue has been contested before various High Courts who have come out with divergent views in this regard. Summarizing the Chhattisgarh High Court decision in favour of the Revenue department and the decisions of the High Courts of Allahabad, Rajasthan and Delhi which were in favour of the assessee, the author opines that if the intention of the legislature was to save the validity of notices issued under the old law, an express saving clause must have been introduced in the new legislation. According to the author, with contrary rulings from High Courts, it is expected that the issue will knock the doors of the Supreme Court. Therefore, the taxpayers should remain ready for another round of battle before the Supreme Court...
Notifications & Circulars
- Timelines extended for filing of income-tax returns and various audit reports for AY 2021-22
- Faceless Appeal Scheme, 2021 notified
- E-Verification Scheme, 2021 notified
- Timeline extended for verification of electronically filled ITRs
- Insertion of Rule 21AK – Conditions for purpose of Section 10(4E)
- Computation of capital gains of resultant fund for the purposes of Section 10(23FF)
- SEZ units – Form of particulars to be furnished along with return of income for claiming deduction under Section 10A(1B)(b)
Ratio decidendi
- Surcharge on sales tax and turnover tax is not ‘fee’ or ‘charge’, hence, falls outside the scope of Section 40(a)(iib) of IT Act – Supreme Court
- Dividend distribution tax not payable where assessee exempted under Section 50 of SIDBI Act – Section 50 of SIDBI Act overrides Section 115-O of IT Act – Bombay High Court
- Initiation of re-assessment proceedings subsequent to approval of Resolution Plan is not valid – Bombay High Court
- Faceless Assessment Scheme does not mean no personal hearing – Word ‘may' in Section 144B(7)(viii) should be read as ‘must’ or ‘shall’ – Delhi High Court
- Royalty arising in India to a resident of Germany will be taxable on receipt basis under India-Germany DTAA – ITAT Delhi
- Remittance of employee’s contribution to PF and ESI – Explanation 2 to Section 36(1)(va) is not clarificatory and will apply prospectively from AY 2021-22 onwards – ITAT Bengaluru
- No TDS under Section 194H of IT Act on payment of bank guarantee fee – ITAT Delhi
