Court clarifies requirements for Income Tax Act notices under Section 148, emphasizing evidence, approval, and assessee's rights.

The court examined the challenge to notices issued under Section 148 of the Income Tax Act in 2021 and the interpretation of amended Section 148 and Section 148(A). The judgment emphasized the necessity of evidence indicating escaped income before issuing notices, requiring prior approval and ensuring the assessee's right to be heard. Citing decisions by the Allahabad and Delhi High Courts, reassessment notices issued post-amendment were set aside due to references to unamended provisions. Assessing authorities were permitted to initiate reassessment under the amended Act if legal requirements were met within the limitation period. All writ petitions were disposed of without costs, allowing reassessment proceedings under the amended Act if compliant with the law and within the limitation period.

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Issues:
Challenge to impugned notice under Income Tax Act, interpretation of Section 148 and Section 148(A) post-amendment.

Analysis:
The writ petitions challenged notices issued in 2021 under Section 148 of the Income Tax Act. The amended Section 148 and Section 148(A) were examined, emphasizing the need for information suggesting escaped income before issuing a notice. The provisions required prior approval for issuing notices and conducting inquiries, ensuring the assessee's opportunity to be heard. The judgment referred to a decision by the Allahabad and Delhi High Courts, setting aside reassessment notices issued post-amendment due to reference to unamended provisions. Assessing authorities were granted liberty to initiate reassessment proceedings under the amended Act after fulfilling legal requirements if the limitation period allowed. Consequently, all writ petitions were disposed of with no costs, allowing reassessment proceedings under the amended Act if compliant with the law and within the limitation period.

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