cbdt: Cbdt For: Do not reopen sub- 50 l cases for Ays ’14 -16 | Mumbai News


Mumbai: The Central Board of Direct Taxes (CBDT) Has issued full instructions to its Income Tax (IT) cadre regarding reopening of cases for recent implementation. Supreme Court The order will prevent the reopening of minor cases relating to the last few years.
As reported by TOI, according to this order, approximately 90,000 reassessment notices issued after April 1, 2021 by the IT department under the provisions of Section 148 were not valid.
However, the order provides that the protection under the new provisions introduced by the Finance Act, 2021 should be complied with.
Initially, the CBDT’s instructions state that notices may not be issued in cases for assessment years (AYs) 2013-14, 2014-15 and 2015-16 if the proceeds from the assessment amount to Rs. Less than 50 lakhs.
In case of income which has escaped the assessment, the IT officer can reopen the cases from six years ago under section 148 (old rule). Under Section 148A (introduced by the Finance Act, 2021), cases from 10 years ago can be reopened only if the income left over from the assessment is Rs. 50 lakhs and if proper procedure is followed.
For AYs 2016-17 and 2017-18, the CBDT has clarified in its instructions that new notices may be issued with the approval of higher authorities, as the three-year time limit has not expired.
Dhruv Advisors Partner Ajay Waffles “The issuance of these instructions by CBDT is a welcome step,” he told TOI.
However, some ambiguity remains. “The notice does not specify how the IT officials are expected to apply the new requirements for cases where the revenue exceeds Rs 50 lakh. That could be an area where taxpayers can still challenge the actions of IT officials, “Rotti said.

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