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Reassessment provisions, applicability of TOLA and way forward in light of the decision in the case of Rajeev Bansal – Part II

INTRODUCTION

7.1 As stated in Part I of this write-up (BCAJ December, 2024), considerable amendments were made in the reassessment provisions by the Finance Act, 2021. Prior to these amendments, a notice could be issued under section 148 of (the ‘old regime’) within the time limits of 4 years (in all cases) / 6 years (escaped income of ₹ 1 lakh or more) / 16 years (asset outside India) as provided in section 149 of the Act if the Assessing Officer (‘AO’) had reason to believe that income chargeable to tax had escaped assessment. Considerable amendments in the provisions dealing with reassessment proceedings (the ‘new regime’) as stated in para 1.4 of Part I of the write-up were brought about by the Finance Act, 2021. The entire procedure for issuance of a reopening notice was revamped by introducing section 148A(d). The erstwhile time limits were also modified and the ‘new regime’ provided for time limit of 3 years in all cases and 10 years in cases where escaped income represented in the form of asset was more than ₹50 lakhs.

7.2 As stated in para 1.3 of Part I of the write up, the time limit to issue notice under section 148 of the Act, granting sanction