Supreme Court Disposed of SLP Relying on ‘Union of India & Ors. vs. Rajeev Bansal’, Upholds Validity of TOLA [Read Judgement]

The Supreme Court in its recent case disposed of the Special Leave Petition (SLP) relying on ‘Union of India & ors v. Rajeev Bansal’ where the court upheld the validity of the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (TOLA).

The SLP arose out of impugned final judgment and order dated 08-04-2024 in WP No. 3721/2022 passed by the High Court of Judicature at Bombay in Revmax Telecom Infrastructures Pvt. Ltd.

A two judge bench of Justice J.B. Pardiwala and Justice R. Mahadevan disposed of the petitions filed by the Revenue. The assessee will be governed by reasons discussed in the said Judgment. The assessing officers will dispose of the objections in terms of the law laid down by the Court. Thereafter, the assessee who is aggrieved will be at liberty to pursue all the rights and remedies in accordance with law, save and except for the issues which have been concluded in the Judgment.

Understanding Common Mode of Tax Evasion with Practical Scenarios, Click Here

The landmark judgment deals with the legal controversy surrounding reassessment proceedings under the Income Tax Act, 1961. The case concerned the validity of reassessment notices issued between April 1, 2021, and June 30, 2021, under the old reassessment regime, despite a new regime coming into effect from April 1, 2021.

The applicability of the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (TOLA) to the new reassessment regime. The validity of reassessment notices issued under the old regime after the new one had come into force. The procedural aspects of reassessment notices, such as time limitations and the requirement of sanction from a specified authority.

The Supreme Court upheld the validity of TOLA and clarified the procedure to be followed by the assessing officers, providing a definitive resolution to a long-standing legal dispute.

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates