While mentioning that tax reopening cases have become very common in the recent times, Assocham added that such of cases leads to "extreme harassment of all assessees".
In its pre-budget memorandum to Finance Minister P Chidambaram, the industry body has sought "changes in Sections 147/148 of the Income Tax Act. These sections relate to the tax re-assessment on matters already examined or in a blanket manner".
"It appears that there is no consideration in following the principles on the subject laid down by the Supreme Court and High Courts over the years," Assocham added.
According to the Assocham President, Rajkumar Dhoot, the provisions relating to reopening of tax assessment cases are being misused across different locations, particularly for salaried assessees, where scrutiny assessment is not possible as per the guidelines of Central Board of Direct Tax (CBDT).