CBDT issues directions to implement Supreme Court’s decision on revaluation dispute

CBDT, in exercise of the powers under section 119, issued Instruction No. 1 of 2022 for implementation of the judgment of the SC in Ashish Agrawal in respect of revaluation notices issued between 01.04.2021 to 30.06.2021; Explains the scope of the decision and lays down the procedure to be followed by the AO. Some of the salient points of the said directive, inter alia, include the following:

• Honourable Supreme Court’s decision will be applicable in all cases Where extended revaluation notices have been issued notwithstanding the fact Whether such notice has been challenged or not,
• The decision of the Hon’ble SC, read with extension of time provided by TOLA, would allow extended revaluation notices to travel back to their original date when such notices were to be issued and then invoked new section 149 of the Act at that point. Have to know ,
• nw 2013-14, AY 2014-15 and AY For 2015-16: A fresh notice under section 148 may be issued with the approval of the Designated Authority, if the matter falls under section (b) of section 149(1) as amended by the Finance Act, 2021, i.e. Income 2013-14, AY 2014-15 and AY Notices cannot be issued for 2015-16, if income To avoid valuation, the amount or amount likely to be less than INR 50 Lakhs. Further, it is clarified that the information and material to be provided as per the Hon’ble SC Judgment cannot be provided in the said cases, where the income evading income is AY. 2013-14, AY 50 lakhs for 2014-15 and in such cases as AY 2015-16 no fresh notice under section 148 will be issued.
• nw 2016-17, AY for 2017-18: Fresh notices under section 148 may be issued with the approval of the Designated Authority under section 149(1)(a), as they are within a period of three years from the end of the relevant assessment year.
• CBDT also laid down the procedure to be followed by the jurisdictional AOs to comply with the Hon’ble SC decision which inter-alia includes the following:
  1. AO will provide reliable information and material within 30 days i.e. by 2nd June 2022
  2. The assessee has to respond within two weeks from the date of final communication of information and material by the AO to the assessee.
  3. If the assessee makes an application and requests it, the AO may grant more time on merit as per section 148A(b).
  4. After receiving the reply, the AO shall pass an order under section 148A(d) within one month from the end of the month in which the reply is received.
  5. If the case is fit for issue of notice u/s 148, the AO shall serve notice u/s 148 to the assessee with an order of 148A(d). Otherwise, the order shall be passed to the assessee only under section 148A(d).

For details, please refer to CBDT Instruction No. 01/2022 dated May 11, 2022 at the link given below

PDF version attached https://www.dpncindia.com/blog/wp-content/uploads/2022/05/CBDT-issues-Instructions-for-implementation-of-SC-ruling-on-Reassessment-Controversy.

Disclaimer:

The information contained herein is in summary form based on the interpretation of CBDT Instruction No. 01/2022 dated May 11, 2022. While the information is believed to be accurate to the best of our knowledge, we make no representations or warranties, express or implied, as to the accuracy or completeness of this information. The reader should conduct and rely on his own examination and analysis and is advised to seek his own professional advice. This document is not an offer, invitation, advice or solicitation of any kind. We accept no responsibility for any error contained herein, whether due to negligence or otherwise or for any damages, whether caused or sustained by a person dependent on it.