Renew Your Membership by 31st October 2024! Renew Now!

September 2024

Important Amendments by The Finance (No. 2) Act, 2024 – Re-Assessment Procedures

By Jagdish T Punjabi, Chartered Accountant
Reading Time 35 mins

1 This Article deals with the amendments made by the Finance (No. 2) Act, 2024 to the provisions of the Income-tax Act, 1961 dealing with reassessment provisions. The Finance (No. 2) Act, 2024 is referred to as “the Amending Act”, the Income-tax Act, 1961 is referred to as “the Act”. The provisions of the Act as they stood immediately before their amendment by the Amending Act are referred to as “the erstwhile provisions”, the amended provisions are referred to as “the amended provisions” / “the present provisions” and the provisions as they stood immediately before their amendment by the Finance Act, 2021 are referred to as “the old provisions”. In this Article, the effect of the amendments carried out by the Amending Act to the provisions of sections 148, 148A, 149, 151 and 152 of the Act have been analysed.

2 Introduction / Background: The Finance Act, 2021 amended the procedure for assessment or reassessment of income escaping assessment w.e.f. 1st April, 2021. The Finance Act, 2021 modified inter alia the provisions of sections 147, 148, 149 and also introduced section 148A. These provisions led to widespread litigation. The Explanatory Memorandum to the Finance (No. 2) Bill, 2024 recognises this and states that “multiple suggestions have been received regarding the considerable litigation at various fora arising from the multiple interpretations of the pro