Issue of reassessment notices by the Income-Tax Department in violation of the law: How the Supreme Court validated them without any reasoning under Article 142

It is for the legislature to provide a remedy; it is not for the Supreme Court to supply one by rewriting the Income-tax Act as per its whims and fancies.

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THE Supreme Court's decision on May 4 in Union of India versus Ashish Agarwal validating a series of notices of reassessment issued by the Income Tax Department flies in the face of key foundational principles that govern a constitutional democracy run by rule of law.

The Supreme Court was deciding an appeal filed by the Department against the order of the Allahabad High Court quashing reassessment notices issued by the Department in contravention to the provisions of the Income-tax Act, 1961 as amended by the 2021 Finance Act.

Pertinently, the entire statutory scheme of initiating, inquiring, conducting, and concluding the reassessment proceedings underwent a sea change upon enforcement of the 2021 Finance Act. Under the amended law, from April 1, 2021, no reassessment notice under Section 148 of the Income-tax Act could be issued without following the procedure prescribed under Section 148A of the Act.