Taxmann’s New Law Relating To Reassessment by D.C. Agrawal – 1st Edition August 2021

This book is a comprehensive commentary on the Reassessment provision under the Income-tax Act, as introduced by the Finance Act, 2021. It features an exhaustive discussion on both fundamental concepts and issues arising under the new law of reassessment combined with essential commentary on statutory provisions and the jurisprudence. It also includes cross-references to other chapters wherever implications need to be understood entirely to assist the reader.

The objective of this book is as follows:

• [Amendments made by the Finance Act 2021] To provide a general idea about the amendment through Finance Act, 2021 in the provisions relating to reassessment
• [Insight into Provisions] To provide an insight into various provisions through a simple and understandable explanation
• [Condition for Deeming Provisions/Procedure] To highlight the conditions under which deeming provision of section 148 can be applied, or procedure contained in section 148A can be followed
• [Case Laws under the Old Law] To highlight to what extent propositions upheld by the Courts under the old law can be applied under the new law
• [Revision u/s 263 in Reopened Cases] To highlight the circumstances under which revision u/s 263 in reopened cases can be done
• [Penal Provisions] To highlight the circumstances under which penal provisions in relation to escaped income can be invoked.

The Present Publication is the Latest Edition, authored by D.C. Agarwal & Ajay Kumar Agarwal, as amended by the Finance Act 2021, with the following noteworthy features:

• [FAQs] for quick answers to 100+ selected questions relating to assessment/reassessment
• [Easy-to-Understand Commentary in Article Format with a focus on Implications] This book is prepared in the form of an easy-to-understand commentary in an article format, and it also provides guidance in understanding the implications of the new law on reopening of completed assessments
• [Understanding Concepts such as Inquiry, Jurisdiction Issues, etc.] It will be helpful to understand the new concept of inquiry before the issue of notice u/s 148 of Income-tax Act for reopening of assessment, and implications and jurisdiction issues arising during its implementation
• [Scope & Limitation of ‘Deemed Information’] The new concept of deemed information contained in section 148, its scope and limitation has been explained in a very lucid manner
• [Interplay of Section 149 & Deemed Information] The book also helps the reader to understand the scope and limitation of section 149 and its effect on deemed information
• [Discussions on Terms which have a Broad Interpretation] The book features thorough discussion on the scope of expressions such as:
  • ‘Suggest’
  • ‘Books of Accounts’
  • ‘Other Documents’
  • ‘Evidence’
  • ‘Asset’
  • ‘Dumb Information’
• It also seeks to share the intricacies and issues arising from the implementation of the new law and their solutions

The structure of the book is as follows:

• The book consists of fifteen chapters, including one on FAQ.
• [Introduction] Chapter one introduces the history of reassessment and legislative background, finally ending with a summary of the new law. It also includes certain judicial views arising during the application of different schemes of reassessment introduced from time to time
• [Income Escaping Assessment – Section 147] Chapter second analyses the following:
  • The new law as framed u/s 147
  • The conditions under which section 147 can be invoked
  • Scope and interpretation of various expressions used in section 147
  • Area of litigation on account of difference of views arising on the scope of section 147 and its relationship with other sections simultaneously introduced
• [Issue of Notice where Income has Escaped Assessment – Section 148] Chapter three describes the following:
  • Various parameters of section 148
  • Conditions for issue and service of notice
  • The concept of information
  • Scope and limitation of Explanations contained in section 148
  • The distinction between the two Explanations
  • Scope of risk management strategy
  • Jurisdictional issues and limitations on initiation of proceedings u/s 148 under different situations
• [Conducting Inquiry, providing opportunity before the issue of Notice under Section 148 – Section 148A] Chapter four provides an analysis of section 148A, which includes the following:
  • Scope of sub-section (a) and (b)
  • Comparison with principles laid down in GKN Driveshafts (India) case [2002] 125 Taxman 963 (SC)
  • Scope of applicability of the procedure laid down in this section
  • Kind and scope of inquiries and limitation thereon
  • The concept of opportunity mentioned in section 148A(b)
  • Consideration of reply furnished by the assessee
  • Scope and limitation of order u/s 148A(d)
• [Concept and Scope of Deemed Information] Chapter five elaborates the concept of deemed information as contained in Explanation 2 to section 148, what is ‘dumb information’ and scope and limitation of deeming fiction contained in this explanation and its consequences on reopening and completion of the assessment
• [Time Limit for Notice – Section 147] Chapter six describes the following:
  • Scope and limitation contained in section 149
  • The condition under which it can be invoked
  • The implication of various provisos contained in section 149
  • The time limit for completing reassessment under the new law
  • Various situations where escaped income cannot be brought to tax after the expiry of three years from the end of the relevant assessment year
• [Books of Account, Other Document & Evidence] Chapter seven describes the scope and limitation of expressions ‘books of accounts, other documents and evidence’ as used in section 149(1)(b)
• [Issue and Service of Notice Generally] Chapter eight will help the readers to understand the law, its intricacies and limitations contained in the issue and service of notices
• [Sanction for Issue of Notice – Section 151] Chapter nine analyses the scope of section 151 under the new law
• [Notice Deemed to be Valid under certain Circumstances – Sections 292B & 292BB] Chapter ten describe the circumstances under which a notice issued will be deemed to be valid
• [Assessment and Reassessment in Search, Requisition and Survey Cases | Revision of Reassessment Orders | Penalties] Chapter eleven to fourteen relates to reassessment procedure including:
  • Reassessment in search requisition and survey cases
  • Revision of reassessment orders and initiation and levy of penalties as a consequence of reassessment
• [Glimpses of Faceless Assessment under the New Law] Chapter fourteen specifically provides a summary of faceless reassessments and model replies required to be filed during the reassessment procedure under the new law
• The last chapter (unnumbered) contains more than 100 questions and their answers typically arising to a reader while studying new law of reassessment