Page 28 - Union Budget, 2022

Union Budget, 2022

Simplifying Assessment Proceedings

Appeal by Revenue on a pending identical question of Law
• Existing Sec 158AA provided that if CIT or PCIT is of the opinion that any question of law arising in the
case of an assessee is identical with a question of law in his case for another AY which is pending under appeal
before Supreme Court or in a SLP, he may direct AO (upon acceptance from assessee) to file appeal to the
ITAT against an order of CIT (A) in the assessee’s case, after the Supreme Court adjudicates the case.
• New Sec 158AB is proposed to be inserted to replace the old Sec 158AA to provide that such decision to
defer the act of appeal by the Revenue against the order of the ITAT or jurisdictional HC, shall be decided
upon by a collegium and communicated to the CIT or PCIT, who in turn shall direct the AO (upon
confirmation from assessee).
• The new Section has extended the operation of the provision to even identical question of law pending against
the jurisdictional HC and pending in the case of any other assessee as well.
• Such application shall be filed by the AO within 60 days of the order of CIT (A) to the ITAT or within 120
days to the jurisdictional HC against the order of the ITAT.
• Collegium shall comprise of two or more Chief Commissioners or Pr. Commissioners or Commissioners.

AY 2022-23 and subsequent years

• The proposed amendment intends to reduce the amount of time and resources consumed in filing of appeals
in identical issues by reducing repetitive litigations. The Government has envisaged Sound Litigation

Management Policy with this proposal.
• Whether interest shall be chargeable on the assessee for the period in abeyance is still not clarified.
• Further, clarity is required for issues which are partly question of law and partly fact based.

Income-tax authorities for the purpose of Survey

• It is proposed to amend Explanation to Sec 133A where income tax authority, for the purpose of survey,
would include authorities who are subordinate to Pr. DGIT/DGIT or PCCIT/CCIT, as specified by the
CBDT.

AY 2022-23 and subsequent AYs.

• The proposed amendment widens the scope of the existing provision by entrusting powers to the
prescribed authorities.

Powers to CIT(A) to impose penalty in certain cases
It has been proposed to amend Sections 271AAB (penalty where search has been initiated), 271AAC (penalty
w.r.t. unexplained income, credits, etc.) and 271AAD (penalty for false entry, etc., in books of account) to
provide powers additionally to CIT(A) to penalise assessees’ actions for undisclosed income, unexplained

credits or expenditures, or deliberate falsification or omission in books of accounts.

AY 2022-23 and subsequent AYs

The proposed amendment provides powers to the CIT(A) along with the AO for levying penalty in order to
discourage malicious acts by the assessees.

Insights from NES

Capital expenditure (CAPEX) has been increased substantially for the Indian Railways from an average annual
CAPEX during 2009-14 of Rs.45,980 crores to Rs.2,15058 crores during 2021-22.

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