Home Business cbdt: Cbdt To I-t: Do Not Reopen Sub-₹50l Instances For Ays ’14-16 | Mumbai Information

cbdt: Cbdt To I-t: Do Not Reopen Sub-₹50l Instances For Ays ’14-16 | Mumbai Information

cbdt: Cbdt To I-t: Do Not Reopen Sub-₹50l Instances For Ays ’14-16 | Mumbai Information

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Mumbai: The Central Board of Direct Taxes (CBDT) has issued exhaustive directions to its earnings tax (I-T) cadre on reopening of instances to implement the latest Supreme Court order. These directions will hold small instances referring to some previous years from being reopened.
As had been reported by TOI, in line with this order, almost 90,000 re-assessment notices that have been issued by the I-T division after April 1, 2021 underneath the provisions of the unamended part 148 have been held legitimate.
Nevertheless, the order supplied that safeguards underneath the brand new provisions launched by the Finance Act, 2021 must be adopted.
To start with, CBDT’s directions state that notices can’t be issued in instances for evaluation years (AYs) 2013-14, 2014-15 and 2015-16 if the earnings escaping evaluation is more likely to be lower than Rs 50 lakh.
In instances of earnings which have escaped evaluation, underneath part 148 (outdated regime) the I-T officer might reopen instances courting again to 6 years. Underneath part 148A (launched by the Finance Act, 2021), instances courting again to 10 years may be reopened provided that the earnings that has escaped evaluation is over Rs 50 lakh and if a correct course of is adopted.
For AYs 2016-17 and 2017-18, the CBDT has clarified in its directions that recent notices may be issued with approval of the upper officers, because the time restrict of three years has not lapsed.
Dhruva Advisors associate Ajay Rotti advised TOI, “CBDT’s issuance of those directions is a welcome transfer.”
Nevertheless, some ambiguities stay. “The instruction just isn’t clear on how the I-T officers are anticipated to use the brand new necessities for instances the place earnings escaping is increased than Rs 50 lakh. That could possibly be one space the place the taxpayers might nonetheless problem the motion of the I-T officers,” mentioned Rotti.

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