Income Tax News: Delhi High Court Orders No Case Reopen Rule, Know its Impact on I-T Dept
Income Tax News: The Delhi High Court issued an important ruling on Monday, declaring that the Income Tax Department cannot reopen any income tax-related matter that has been closed for more than three years. In situations of concealment of income over Rs 50 lakh and significant fraud, the Income Tax Department might issue a reassessment order for up to ten years.
What are the Exceptions?
The order was made while the Delhi High Court considered the legality of the petitioner’s notice filed under Section 148 of the Income Tax Act. The Income Tax Officer could open cases up to 6 years old under the former Section 148 regime. At the same time, 10-year-old cases might be opened, but the taxpayer’s annual income must be greater than Rs 50 lakh. Only in circumstances where the claimed undisclosed income exceeds Rs 50 lakh may a reassessment order be granted after three years.
