13 June 2022
Mr. A received notice u/s 148 as on dated 16.04.2021 . The income chargeable to tax that has escaped assessment amount is below 50 Lakhs. No new notice u/s 148A(b) issued by the department. Whether the Notice u/s 148 is still valid or not ??
10 July 2024
The validity of the notice issued under section 148 of the Income Tax Act, 1961, depends on various factors, including the procedural requirements and the circumstances of the case. Here’s a detailed explanation based on the information provided:
### Understanding Section 148 Notice:
1. **Section 148 Notice Issuance:** - Section 148 allows the Income Tax Department to issue a notice for reopening assessment if they have reason to believe that income chargeable to tax has escaped assessment. - The notice is typically issued within a specified period from the end of the relevant assessment year.
2. **Validity of Notice:** - For notices issued under section 148, they are generally required to be served within a specific time frame from the end of the relevant assessment year. - Once a notice is issued under section 148, it remains valid unless it is challenged and invalidated through appropriate legal proceedings or if it lapses due to non-compliance by the taxpayer.
3. **Notice u/s 148A(b):** - Section 148A(b) pertains to situations where the income chargeable to tax that has escaped assessment is less than Rs. 50 lakhs. - If the income in question falls within this threshold, a specific notice under section 148A(b) is required to be issued by the Assessing Officer. - Based on your information, it seems no notice under section 148A(b) has been issued by the department.
### Assessment of the Situation:
- **Notice Date:** The notice under section 148 was dated 16.04.2021. - **Income Escaped Assessment:** The income in question is below Rs. 50 lakhs, which falls under section 148A(b).
### Conclusion:
Given the details provided:
- The notice issued under section 148 on 16.04.2021 remains valid unless challenged on procedural grounds or other valid reasons. - Since the income escaped assessment is below Rs. 50 lakhs and no notice under section 148A(b) has been issued, the validity of the notice under section 148 itself hinges on whether it was issued within the prescribed time limits and according to due process.
### Action Steps:
- If Mr. A wishes to contest the validity of the notice, it would be advisable to consult a tax consultant or legal advisor who can review the specifics of the notice and provide guidance on potential actions. - Ensuring compliance with any deadlines or responses required by the notice is crucial to avoid adverse consequences.
In summary, the notice issued under section 148 on 16.04.2021 is likely still valid, but it’s essential to verify compliance with procedural requirements and seek professional advice for any further steps.
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