In a path-breaking judgment in the case of Union of India & Others vs. Ashish Agarwal in Civil Appeal No. 3005/2022, the Supreme Court of India has declared that the reassessment notices issued under the erstwhile unamended section 148 of the Income-tax Act, 1961 (‘Act’) after 1st April 2021 and within 30th June 2021 are valid in law and shall be treated as notices issued under section 148A of the Act. This judgment is rendered on 04.05.2022.
With this decision, the Supreme Court has upheld the validity of all the reassessment notices issued under old section 148 of the Act after 31st March 2021. The Apex Court has exercised its extraordinary powers under Article 142 of the Constitution of India. Consequently, this order will be applicable to all the High Court judgments on the issue, as well as pending proceedings and therefore the present order shall be applicable to PAN INDIA.
