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TMI BlogSupreme Court Upholds Validity of Re-Assessment Notices Issued During COVID-19 LockdownX X X X Extracts X X X X X X X X Extracts X X X X ..... ent notices issued by the Income Tax Department during the nationwide COVID-19 lockdown in 2020. The apex court's decision resolves a long-standing controversy surrounding the applicability of the relaxations granted by the government due to the pandemic and the interpretation of the relevant provisions of the Income Tax Act, 1961 (the Act). Background and Arguments Presented The case arose ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 148A. On the other hand, the Income Tax Department defended the validity of the notices, asserting that the relaxations granted under TOLA were comprehensive and extended to all provisions of the Act, including the procedural requirements u/s 148A. Discussions and Findings of the Court The Supreme Court, after a detailed examination of the relevant provisions and legal principles, upheld th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ect. The court reiterated the well-established principle that statutes operate prospectively unless expressly or by necessary implication provided otherwise. Since the Finance Act, 2021, did not expressly or impliedly provide for retrospective operation, Section 148A could not be applied retrospectively to invalidate notices issued before its introduction. Analysis and Decision by the Court Base ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 39;s ruling has far-reaching implications for the Income Tax Department and taxpayers. It upholds the validity of a significant number of re-assessment notices issued during the lockdown period, paving the way for the Income Tax Department to proceed with the re-assessment proceedings. However, taxpayers still have the opportunity to challenge the merits of the re-assessment proceedings and the su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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