Income Tax Information On Insight Portal A Ground For Action Under Section 148?

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The Tax Publishers Income Tax--Reassessment Information On Insight Portal--A Ground For Action Under Section 148 ? Sameer Bhatia The learned author in his write-up has examined and discussed the provisions of amended Section 148 when the information suggestive of escapement of income is the foundation of proceedings. However, merely on the score that information suggestive of escapement finds a mention on the INSIGHT/Compliance portal factually offers enough tangible material to go for reassessment is something which has been deprecated by the recent decisions of Hon'ble Allahabad and Bombay High Courts respectively. The author rightly argues that information suggestive on the INSIGHT/Compliance portal can also be glued with factual inaccuracy and in such circumstances, forcing the assessee to face re-assessment proceedings will find foul of not only the legislative intent but also affronts authority of judicial precedents available on the subject. 1. Introduction The provisions of Income Tax law as it stands on the statute empowers the department i.e. enforcement agencies to reopen assessments for the concluded period under reference. However such power has to be curtailed to the extent of the provisions as they are enforced within the realm of statute. The expression 'Reason to Believe' was a long lasted provision that existed on the statutory podium just for the sake to receive another amendment to the law whereby the very basis for such an expression has since been removed. The law in the present times is more inclined towards 'Information which is suggestive of the fact that Income has escaped assessment for the relevant year under consideration'. But the fundamental issue arises as to whether post coming into force of information suggestive of escapement of income, still recourse to the provisions of Section 147/148 read with Section 149 be taken under the law by the department. 2. Information extracted through INSIGHT/Compliance Portal The law as it stands today mainly banks upon the information which is suggestive of the fact that income chargeable to tax has escaped assessment/re-assessment for the year under reference. Information which is though suggestive in nature when pitted against the mouthpiece of INSIGHT/Compliance portal is often tagged as income liable to be taken up for assessment/re-assessment by the authorities concerned. Many a times it can also be acknowledged that information in the INSIGHT/Compliance portal is factually disputed and not correct but to the utter astonishment of assessee, proceedings in the amended era are also taken recourse to even when there is absolutely no basis to initiate any such action by the department. The issue was recently dealt by the Hon'ble Allahabad High Court in Prakhar Tandon v. Assessing Officer, Ward No. 1(3)(5), Kanpur reported in (2022) 448 ITR 177 : 288 Taxman 133/140 taxmann.com 98 (Allahabad). The Hon'ble High Court was confronted with a very pivotal issue touching upon the factual aspect of the case under consideration. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

Income Tax--Reassessment

Information On Insight Portal--A Ground For Action Under Section 148 ?

Sameer Bhatia

The learned author in his write-up has examined and discussed the provisions of amended Section 148 when the information suggestive of escapement of income is the foundation of proceedings. However, merely on the score that information suggestive of escapement finds a mention on the INSIGHT/Compliance portal factually offers enough tangible material to go for reassessment is something which has been deprecated by the recent decisions of Hon'ble Allahabad and Bombay High Courts respectively. The author rightly argues that information suggestive on the INSIGHT/Compliance portal can also be glued with factual inaccuracy and in such circumstances, forcing the assessee to face re-assessment proceedings will find foul of not only the legislative intent but also affronts authority of judicial precedents available on the subject.

1. Introduction

The provisions of Income Tax law as it stands on the statute empowers the department i.e. enforcement agencies to reopen assessments for the concluded period under reference. However such power has to be curtailed to the extent of the provisions as they are enforced within the realm of statute. The expression 'Reason to Believe' was a long lasted provision that existed on the statutory podium just for the sake to receive another amendment to the law whereby the very basis for such an expression has since been removed. The law in the present times is more inclined towards 'Information which is suggestive of the fact that Income has escaped assessment for the relevant year under consideration'. But the fundamental issue arises as to whether post coming into force of information suggestive of escapement of income, still recourse to the provisions of Section 147/148 read with Section 149 be taken under the law by the department.

2. Information extracted through INSIGHT/Compliance Portal

The law as it stands today mainly banks upon the information which is suggestive of the fact that income chargeable to tax has escaped assessment/re-assessment for the year under reference. Information which is though suggestive in nature when pitted against the mouthpiece of INSIGHT/Compliance portal is often tagged as income liable to be taken up for assessment/re-assessment by the authorities concerned. Many a times it can also be acknowledged that information in the INSIGHT/Compliance portal is factually disputed and not correct but to the utter astonishment of assessee, proceedings in the amended era are also taken recourse to even when there is absolutely no basis to initiate any such action by the department. The issue was recently dealt by the Hon'ble Allahabad High Court in Prakhar Tandon v. Assessing Officer, Ward No. 1(3)(5), Kanpur reported in (2022) 448 ITR 177 : 288 Taxman 133/140 taxmann.com 98 (Allahabad). The Hon'ble High Court was confronted with a very pivotal issue touching upon the factual aspect of the case under consideration.