148A Income Tax Notice issued ! Here is the Complete Procedure
Procedure for issue of Notice u/s 148a income tax
The procedure under Section 148A of the Income Tax Act, 1961, is a mandatory preliminary process that an Assessing Officer (AO) must follow before they can officially reopen a tax case. It ensures you have a fair opportunity to explain why your assessment should not be reopened.
Procedural Steps for a Section 148A Notice
The process typically follows these four stages:
1. Conducting Inquiry (Optional):
- The AO may conduct an initial inquiry with the prior approval of a specified authority (usually a Joint Commissioner or above) to gather information regarding potential “escaped income”.
2. Issuing a Show-Cause Notice (Section 148A(b)):
- The AO serves you a formal notice asking why a reassessment should not be initiated.
- Accompanying Material: The notice must be accompanied by the specific information or evidence that suggests income has escaped assessment.
- Response Timeline: You must be given a minimum of 7 days and a maximum of 30 days to reply. You can request an extension through the Income Tax e-Filing Portal.
3. Considering Your Reply (Section 148A(c)):
- The AO is legally bound to review and consider any explanation or supporting documents you submit in your response.
4. Passing a Final Order (Section 148A(d)):
- Based on your reply and the available evidence, the AO decides if it is a “fit case” to proceed.
- Speaking Order: If they decide to move forward, they must pass a “reasoned” or speaking order that addresses your objections.
- Approval: This order also requires prior approval from a senior authority before it can be issued.