Prachi Jindal (CA-Article-Final-Student) (129 Points)
05 January 2013I have a query regarding issue of notice under sec 148 inspite of there was time left for the assessment under sec 143(3)...will it be possible to issue notice for income escape even if time is remaining to do the assessment under sec 143(3)..?? Assessee has not received any notice for regular assessment yet..??
CA Sneha Jalan
(CA FINAL)
(73 Points)
Replied 05 January 2013
Dear Prachi,
Income escaping assessment u/s 147 is independent section.it is irrelevent whether Assmnt u/s 143(3) has been done or not.It is assessment as well as re assessment.it is a very powerful tool for AO.
There is some time limit whithin which notice u/s 148 can be issued.there are two time lime limit.first notice can be send for any amount till 4 years from the end of the relevant f.y. second if ur escaped income amount is Rs. 100000 or more then only notice can be issued after 4 years till 6 years.'
But dere is also some situation in which dere is no any time limit for notice.if notice is send for giving effect to the finding nd decision of CIT, ITAT,High COURT, SUPREME COURT nd any other court of any other law...
Hope i m able to solve ur query.
Thanks & Regards,
Sneha jalan
Prachi Jindal
(CA-Article-Final-Student)
(129 Points)
Replied 17 January 2013
Thanks a lot Miss Sneha...m satisfied with ur reply..but my doubt is..Can AO go for 148 notice if there is time still left to serve 143 notice..??
Nikhil Kaushik
(Fellow CA)
(85748 Points)
Replied 18 January 2013
Dear Prachi,
As Sneha pointed out, assessment under 143 and 148 are mutually exclusive. To answer your query, YES, 148 notice can be issued even if 143 time limit is still available.
Kindly refer to cases mentioned in explanation 2 to section 147 for the same.
"Explanation 2.—For the purposes of this section, the following shall also be deemed to be cases where income chargeable to tax has escaped assessment, namely :—
(a) where no return of income has been furnished by the assessee although his total income or the total income of any other person in respect of which he is assessable under this Act during the previous year exceeded the maximum amount which is not chargeable to income-tax ;
(b) where a return of income has been furnished by the assessee but no assessment has been made and it is noticed by the Assessing Officer that the assessee has understated the income or has claimed excessive loss, deduction, allowance or relief in the return ;"
Now, if you see the above "(b)", it actually provides for situation where reassessment can be done where no assessment has been made. Thus, 148 notice may be issued even before expiry of 147 time limit.
To summarize, there is no need for the AO to go through 143 formalities before issuance of 148 notice provided there is sufficient cause to do the same and the reasons have been recorded by the AO in writing.
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