Section 148A Income Tax Act Procedure before issuance of notice under section 148.
Section 148A Income Tax Act of India is for conducting Inquiry, providing opportunity before issue of notice u/s 148
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For Section 148A of the Income-tax Act, the following sections shall be substituted with effect from the 1st day of September, 2024, namely
Procedure before issuance of notice under section 148.
148A. (1) Where the Assessing Officer has information which suggests that income chargeable to tax has escaped assessment in the case of an assessee for the relevant assessment year, he shall, before issuing any notice under section 148 provide an opportunity of being heard to such assessee by serving upon him a notice to show cause as to why a notice under section 148 should not be issued in his case and such notice to show cause shall be accompanied by the information which suggests that income chargeable to tax has escaped assessment in his case for the relevant assessment year.
(2) On receipt of the notice under sub-section (1), the assessee may furnish his reply within such period, as may be specified in the notice.
(3) The Assessing Officer shall, on the basis of material available on record and taking into account the reply of the assessee furnished under sub-section (2), if any, pass an order with the prior approval of the specified authority determining whether or not it is a fit case to issue notice under section 148.
(4) The provisions of this section shall not apply to income chargeable to tax escaping assessment for any assessment year in the case of an assessee where the Assessing Officer has received information under the scheme notified under section 135A.
Explanation.-For the purposes of this section and section 148, “specified authority” means the specified authority referred to in section 151.]
Summary of Old Section 148A Income Tax Act
- Section 148A Income Tax Act Inserted by the Finance Act, 2021, w.e.f. 1-4-2021.
- Words “with the prior approval of specified authority, in Section 148A (2) ” omitted by the Finance Act, 2022, w.e.f. 1-4-2022.
- Follwing words Substituted for “relate to, the assessee.” by the Finance Act, 2022, w.e.f. 1-4-2022 in Clause (c) of First proviso to section 148A Income Tax
- ” relate to, the assessee; or
- (d) the Assessing Officer has received any information under the scheme notified under section 135A pertaining to income chargeable to tax escaping assessment for any assessment year in the case of the assessee.
Video Explanation of Section 148A Income Tax Act Conducting Inquiry
Section 148A Income Tax Act Conducting Inquiry, providing opportunity before issue of notice u/s 148
Conducting inquiry, providing opportunity before issue of notice under section 148.
148A. The Assessing Officer shall, before issuing any notice under section 148,—
| (a) | conduct any enquiry, if required, with the prior approval of specified authority, with respect to the information which suggests that the income chargeable to tax has escaped assessment; | |
| (b) | provide an opportunity of being heard to the assessee, 1[***] by serving upon him a notice to show cause within such time, as may be specified in the notice, being not less than seven days and but not exceeding thirty days from the date on which such notice is issued, or such time, as may be extended by him on the basis of an application in this behalf, as to why a notice under section 148 should not be issued on the basis of information which suggests that income chargeable to tax has escaped assessment in his case for the relevant assessment year and results of enquiry conducted, if any, as per clause (a); | |
| (c) | consider the reply of assessee furnished, if any, in response to the show-cause notice referred to in clause (b); | |
| (d) | decide, on the basis of material available on record including reply of the assessee, whether or not it is a fit case to issue a notice under section 148, by passing an order, with the prior approval of specified authority, within one month from the end of the month in which the reply referred to in clause (c) is received by him, or where no such reply is furnished, within one month from the end of the month in which time or extended time allowed to furnish a reply as per clause (b) expires: |
Provided that the provisions of this section shall not apply in a case where,—
| (a) | a search is initiated under section 132 or books of account, other documents or any assets are requisitioned under section 132A in the case of the assessee on or after the 1st day of April, 2021; or | |
| (b) | the Assessing Officer is satisfied, with the prior approval of the Principal Commissioner or Commissioner that any money, bullion, jewellery or other valuable article or thing, seized in a search under section 132 or requisitioned under section 132A, in the case of any other person on or after the 1st day of April, 2021, belongs to the assessee; or | |
| (c) | the Assessing Officer is satisfied, with the prior approval of the Principal Commissioner or Commissioner that any books of account or documents, seized in a search under section 132 or requisitioned under section 132A, in case of any other person on or after the 1st day of April, 2021, pertains or pertain to, or any information contained therein, 2 [relate to, the assessee; or | |
| (d) | the Assessing Officer has received any information under the scheme notified under section 135A pertaining to income chargeable to tax escaping assessment for any assessment year in the case of the assessee.] |
Explanation.—For the purposes of this section, specified authority means the specified authority referred to in section 151.]
1. Words “with the prior approval of specified authority,” omitted by the Finance Act, 2022, w.e.f. 1-4-2022.
2 Substituted for “relate to, the assessee.” by the Finance Act, 2022, w.e.f. 1-4-2022.
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