The Indian government has provided an update to the Supreme Court regarding amendments to Section 150 of the Income Tax Act. According to additional solicitor general (ASG) on behalf of the government, the revised law is set to take effect from April 1, which is expected to impact nearly 20,000 pending assessment cases in courts across the country. This comes during a time when there are significant amounts of reassessment proceedings worth over ₹16.5 lakh crore pending, which are crucial for the Indian economy.

During the hearings, representatives from the Income Tax Department highlighted the implications of the pending cases, with estimates indicating approximately 2,000 cases pending in the Supreme Court alone. The proceedings are vital, considering the potential financial impact on the economy. The Chief Justice hinted that the proposed amendment might be clarificatory in nature, which could include explanations regarding the validity of faceless reassessments, indicating the significance of this development in shaping future legal proceedings related to tax assessments.

Moreover, the Chief Justice suggested that once the law is enacted, its validity may also face challenges in court. In such scenarios, the court may consider granting a 'moratorium' of three months to allow the parties involved time to adjust. This development highlights the ongoing challenges and reforms in India's tax system, as the government aims to streamline the assessment process while addressing the backlog in legal cases related to tax reassessments, which is essential for efficient governance and economic stability.