(a) whether Income Tax Department is not likely to reopen cases where assessment proceedings had been finalized before April 1, 2012;
(b) if so, the details thereof and reasons therefor; and
(c) the response received so far?
(a) whether Income Tax Department is not likely to reopen cases where assessment proceedings had been finalized before April 1, 2012;
(b) if so, the details thereof and reasons therefor; and
(c) the response received so far?
MINISTER OF STATE IN THE MINISTRY OF FINANCE (S.S. PALANIMANICKAM)
(a) and (b) The provisions of section 147 of Income Tax Act empowers the Assessing Officer to assess or reassess any
income chargeable to tax which he has reason to believe that has escaped assessment. Therefore, the possibility of
reopening of cases where assessment has been finalized before April 1, 2012 would depend upon whether on the basis
of the concerned facts, the Assessing Officer has reason to believe that any chargeable income has escaped assessment
in that case.
However, a clarification was issued that in cases where assessment proceedings have been completed under Section 143
(3) of Income Tax Act, 1961, before the first day of April, 2012, and no notice for re-assessment has been issued prior
to that date; then such cases shall not be re-opened under Section 147/148 of the Income Tax Act, 1961 on account of the clarificatory amendments in Section 2(14), 2 (47), 9 (1) (i) and 195 of the Income Tax Act, 1961 as introduced by the
Finance Act, 2012.
(c) N.A in view of reply to (a) and (b) above.