Do not issue reassessment notices for 3 yrs till FY15: CBDT to officers

NEW DELHI: The Income Tax Department has asked field offices to not issue reassessment notices for 201213, 2013-14 and 2014-15 fiscal years to small taxpayers wherein the income escaping from tax is less than Rs 50 lakh.

Issuing an instruction on implementation of the apex court judgement regarding notices sent beyond the threeyear reassessment period, the department said that for FY16 and FY17 where the timeline for issue of such notices falls within the 3 years, tax officers will issue show-cause notices and provide information to taxpayers for initiating reassessment proceedings within 30 days.

Central Board of Direct Taxes (CBDT) asked tax officers to give taxpayers two weeks' time to respond to such notices, which can be further extended at taxpayer's request in genuine cases.

The Supreme Court had earlier this month ruled in favour of the I-T Department and upheld all reassessment notices issued on/after April 1, 2021-- reopening assessments going back to up to 6 years.

The government had in Budget last year (2021-22) reduced the reopening time for I-T assessments to 3 years from 6 years.

However, the tax department sent out a host of notices for reopening assessments which goes back to even beyond 3 years. These notices were then challenged in several high courts and the I-T Department then appealed to the Supreme Court to uphold such notices.