Reassessment dispute case: SC rules in favour of Revenue Department

The new reassessment law had capped the period for issuing notices with respect to reopening past cases at three years, down from from six years earlier

The Supreme Court (SC) on Wednesday ruled in favour of the Revenue Department in the reassessment dispute case. The top court reversed the earlier high court orders that had quashed income-tax notices issued after March 31, 2021, under the old reassessment regime.

The SC ruling has come as a setback for thousands of taxpayers who had got favourable orders from several high courts on reassessment.

The apex court held that notices issued under the old regime will not be invalid and shall be deemed to have been issued under new provision of the reassessment regime introduced in the Finance Act,