The Supreme Court has put a stay on notice issued by the Income Tax Department for reassessment proceedings against spiritual organisation Radha Soami Satsang Beas.
A bench comprising of Justice AS Bopanna and Justice S Ravindra Bhat have asked for the response of the Income Tax Department (ITD) in the plea which Punjab-based body has challenged the order of Punjab & Haryana High Court order that denied similar relief.
The judges stated that notice has been issued to the respondent and that there shall be interim stay of further proceedings pursuant to the impugned notice dated 29.03.2022.The case is likely to be heard next on January 13, 2023.
The Punjab and Haryana High Court High Court, in May had dismissed plea in the present appeal stating that alternative statutory remedies were not exhausted.
The petitioner counsel has argued that as per the Section 12 of the Income Tax Act, provisions in the reassessment notice for the year 2018-19 cannot be applicable to a religious trust
It was stressed that after the 2021 Finance Act, new procedures including Section 148A were incorporated, to result in lesser litigation.
The counsel said that which the new provision in place said a notice can be issued only when there is information with the Assessing Officer that suggests that income chargeable to tax has escaped assessment.