Income Tax: Now the Income Tax Department will not be able to reopen cases that are so many years old, the High Court has clarified
Income Tax Rules: People are always afraid of Income Tax action. Often people are worried about old cases. But a decision of the High Court has given great relief to those who pay income tax. According to the decision, the Income Tax Department will not be able to reopen cases older than a certain time. Let us know about the decision of the High Court in detail.
Income Tax Rules: The High Court of the country's capital Delhi has given an important order on November 20. In which it has been told that the Income Tax Department cannot reopen cases older than a certain time limit. This has brought a lot of relief to taxpayers. A large number of people will benefit greatly from the High Court's decision.
Income tax department cannot reopen cases that are so old
The Delhi High Court said in its order that the Income Tax Department cannot reopen any income tax case that is more than three years old. Except for a few cases, the law cannot reopen it. However, in normal cases, a reassessment order cannot be issued after 3 years.
The Income Tax Department can also reopen ten-year-old cases for reassessment (Income tax reassessment order). But the 10-year time limit will apply only if income of more than Rs 50 lakh has been concealed with the intention of tax evasion. Even in the case of serious fraud, cases up to ten years old can be reopened.
Delhi High Court said this in the hearing
Delhi High Court heard a special case. The hearing was conducted by a bench of Justice Rajiv Shakdhar and Justice Girish Kathpalia in the High Court. The court said that in normal cases, Income Tax Notice cannot be issued three years after the end of the assessment year.
The court has clarified that only in certain special cases, notice for reassessment can be issued even after three years. These include cases in which income of more than Rs 50 lakh has been concealed or there is a case of serious tax evasion.
The court clarified on section 148 of the Income Tax Act
Delhi High Court had to decide on the validity of the notice issued to the petitioner as per Section 148 of the Income Tax Act. At the same time, it became clear in the court that according to the old system of Section 148, the Income Tax Officer could reopen cases up to 6 years old.
Later the government had made it three years. At the same time, in cases up to ten years old, reassessment i.e. the case can be reopened for investigation only if income tax of more than Rs 50 lakh is concealed.