Whether Notice U/S 148 Can Be Validly Issued In April 2024 for A/Y 2017- 18

Summary

This video discusses the complexities surrounding the validity of income tax assessment notices under Sections 149 and 148, particularly for the assessment years 2016-17 and 2017-18. The speaker addresses how recent legal changes affect notice issuance deadlines, especially the shift in timelines introduced in 2021. The key issue is the potential invalidity of notices issued after March 31, 2023, and the need for taxpayers to file objections. Citing a Bombay High Court judgment, the speaker emphasizes the importance of understanding the legal provisions and advises affected individuals to seek judicial review if necessary.

Takeaways

• 😀 The speaker discusses the complexities of issuing notices for the assessment years 2016-17, 2017-18, and 2021, particularly in relation to the legal provisions under Section 149 of the Income Tax Act.
• 😀 The main concern addressed is the impact of changes in the law in 2023, especially the introduction of the fifth and sixth provisions, which affect the timeline for issuing notices.
• 😀 Section 149 specifies a 3-year time limit for certain assessments, and a 10-year time limit for others, but recent amendments may alter how these timelines are calculated.
• 😀 The notice issued under Section 148B can have a time limit of 7 days to 30 days, but if not met, additional time may be granted, affecting the timeline for issuing subsequent notices.
• 😀 There is a question of whether notices issued in April after the 31st March deadline are valid, with the speaker suggesting that such notices may be considered invalid if they don't comply with Section 149.
• 😀 The fifth and sixth provisions of the amended law allow for extensions, but the validity of notices is debated, particularly regarding how these extensions apply to the 6-year period under the law.
• 😀 The speaker emphasizes the importance of understanding the nuances between procedural provisions and substantive provisions of the law, especially as they pertain to Section 149 and Section 148B.
• 😀 The Bombay High Court's judgment is highlighted as a significant reference, particularly Paragraphs 29 and 30, which clarify that notices issued outside the correct timeframe may be invalid.
• 😀 The speaker advises individuals affected by these notices to file objections, particularly if the notices are issued after the deadlines in March or April, suggesting that legal recourse may be necessary.
• 😀 The speaker concludes by encouraging legal practitioners to share knowledge and offer guidance on such complex tax law issues, emphasizing the importance of staying informed about legal changes.

Q & A

What is the main topic discussed in the transcript?

The main topic discussed is the legal provisions regarding notices under Section 149 and Section 148B of the Income Tax Act, with specific reference to timelines and the effects of amendments in 2021 and 2023.

What was the issue with the notices expected by March 31, 2023?

The issue arose because the notices under Section 149 and Section 148B, which were due by March 31, 2023, were delayed and were expected to be issued after this date, creating concerns about the validity of these notices.

How did the provisions of the 2021 law affect the timeline for issuing notices?

Under the 2021 law, the timeline for issuing notices under Section 149 was limited to 3 years for some cases, and 10 years for others. The amendments introduced in 2023 changed some of these provisions, affecting the calculation of the timeline for issuing notices.

What does Section 149 of the Income Tax Act specify regarding the timeline for issuing notices?

Section 149 specifies that the timeline for issuing notices can be 3 years or 10 years, depending on the nature of the case. However, amendments in 2023 impact how these timelines are calculated.

What role does Section 148B play in the process of issuing notices?

Section 148B relates to the issuance of notices and specifies the minimum and maximum time allowed for the issuance of such notices. The notice period can be extended, as per the provisions of this section.

What is the problem with the notices issued in April 2023?

The problem is that the notices issued in April 2023 did not comply with the original timelines under Section 149, leading to questions about their validity, as the period for issuing notices may have already expired.

Can the extended timeline provisions (5th and 6th provisions) apply to notices issued after March 2023?

No, the 5th and 6th provisions cannot extend the timeline for notices issued after the legal limits set under Section 149. These provisions are only applicable where the original timelines are within the scope of the law.

What is the significance of the 5th and 6th provisions in relation to notices under Section 149?

The 5th and 6th provisions are intended to provide extensions for certain timelines under Section 149, but they cannot extend the 3 or 10-year period beyond what is permitted under the substantive law of Section 149.

How can one challenge the validity of notices issued after the prescribed deadlines?

One can challenge the validity of notices by filing objections with the authorities or, if necessary, by approaching the judicial High Court to address the issue of the notices being issued beyond the legal deadline.

What is the importance of the judgment mentioned in the transcript from the Bombay High Court?

The judgment from the Bombay High Court is significant as it clarifies the legal perspective on the validity of notices issued after the deadlines, specifically explaining that such notices would be invalid if issued after the stipulated time under Section 149.