In a big win for the tax department, the Supreme Court ruled on Thursday that the Income Tax Act must be interpreted with the amended provisions effective after April 1, 2021. This decision will impact approximately 90,000 reassessment notices, as clarified by the court.

The ruling stems from the case involving Ashish Agarwal and confirms that the Taxation and Other Laws (Relaxation & Amendment of Certain Provisions) Act (TOLA) will remain applicable to the Income Tax Act beyond the specified date.

While giving out the verdict, Chief Justice DY Chandrachud said that ITO Surat by Gujarat HC, Rajeev Bansal judgment by Allahabad HC, Siemens vs DCIT Bombay HC judgment, Ambika Anand Orissa HC judgment, Twilight industries, Ganesh Das Khanna from Delhi HC were set aside.

The legal disputes arose during the pandemic, when the government temporarily extended the previous regulations governing the reopening of old tax returns.