• Notification Date: 02-12-2022
• Notification No: N/A

Supreme Court stays Income Tax Reassessment Notice against Radha Soami Satsang Beas Case

The notice issued by the Income Tax Department for reassessment proceedings against spiritual organization Radha Soami Satsang Beas has been stayed by the Supreme Court. 

Supreme Court bench comprising of Justice AS Bopanna and Justice S Ravindra Bhat, have sought the response of the Income Tax Department in the plea which Punjab-based body has challenged the order of Punjab & Haryana High Court order that denied similar relief. As per the statement of the judges, there shall be an interim stay of further proceedings pursuant to the impugned notice dated 29.03.2022. The next hearing of the case will likely be on January 13, 2023. 

The Punjab and Haryana High Court dismissed the plea in the present appeal back in May. The HC stated that alternative statutory remedies were not exhausted. As per Section 12 of the Income Tax Act, reassessment notice provisions for the year 2018-19 are not applicable for a religious trust, argued the petitioner's counsel. After the 2021 Finance Act, new procedures such as Section 148A were introduced under the Act for reducing litigation. 

In such a case, where the new provision is in place, a notice can be issued only when the Assessing Officer has specific information that suggests that income chargeable to tax has escaped assessment.