News of No Reassessment For Retro Amendments only Partially Correct

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The media is reporting the news that Finance Minister has stated that CBDT will issue necessary circular to clarify that the assessment which has been completed upto 01/04/2012 will not be reopened u/s 147 omn account of retrospective assessment.Now , after reading teh said circular , which is given below , one can only says the said report is only partially correct . Why ?? First read the circulars

Letter [F.No.500/111/2009-FTD-1(Pt.)], dated 29-5-2012

The Finance Act, 2012 has introduced certain clarificatory amendments in section 2 clause (14), Section 2 clause (47), Section 9 and Section 195, of the Income Tax Act, 1961 (“Act”), with retrospective effect from 01.04.1962 or 01.04.1976, whereby meaning of various terms used in these sections have been clarified in order to remove any doubt regarding their interpretations.

2. These amendments have been introduced retrospectively in order to clarify the legislative intent and state the position of law from the date of coming into effect of these sections in the Act.

3. Doubts have been raised in various quarters about the implication of these amendments on the assessments that have already been completed and attained finality.

4. The Board, after due consideration, hereby directs that in case where assessment proceedings have been completed under section 143(3) of the Act, before the first day of April, 2012, and no notice for reassessment has been issued prior to that date; then such cases shall not be reopened under section 147/148 of the Act on account of the above mentioned clarificatory amendments introduced by the Finance Act, 2012. However, assessment or any other order which stand validated due to the said clarificatory amendments in the Finance Act, 2012 would of course be enforced.

5. This may be brought to the notice of all officers in your region immediately

True meaning of CBDT circular on retrospective amendment

The aforesaid circular says the assessment which is completed u/s 143(3) shall not be reopened. It only means that all cases where the scrutiny proceeding were not initiated for Assessment upto Asst Yr 2010-11 ( which generally get barred by 31/12/2011 , shall be ripe for reopening foe the reason of retrospective reassessments.