In Brief
The Supreme Court modified High Court judgments that quashed reassessment notices issued under the unamended Income Tax Act after the Finance Act 2021 amendments took effect on 1st April 2021. Rather than striking down the approximately 90,000 reassessment notices, the Court deemed them to be issued under the new section 148A procedure, treating them as show-cause notices. This balanced approach allowed the reassessment process to continue while ensuring assessees received the protective safeguards introduced by the Finance Act 2021, including opportunity of hearing and approval requirements before issuing formal notices.
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