Notice U/S 148

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 02 April 2011

Who can issue notice U/s 148: Section 151(1) provides that in a case where an assessment under sub-section (3) of section 143 or 147 has been made for the relevant assessment year, no notice shall be issued under section 148 by an Assessing Officer, who is below the rank of Assistant Commissioner or Deputy Commissioner, unless the Joint Commissioner is satisfied on the reasons recorded by such Assessing Officer that it is a fit case for the issue of such notice] :

Provided that, after the expiry of four years from the end of the relevant assessment year, no such notice shall be issued unless the Chief Commissioner or Commissioner is satisfied, on the reasons recorded by the Assessing Officer aforesaid, that it is a fit case for the issue of such notice.

In a case other than a case falling under sub-section (1) of section 151, no notice shall be issued undersection 148 by an Assessing Officer, who is below the rank of Joint Commissioner, after the expiry of four years from the end of the relevant assessment year, unless the Joint Commissioner is satisfied, on the reasons recorded by such Assessing Officer, that it is a fit case for the issue of such notice.

Time Limit for Issuing of notice u/s 148: Section 149 provides that notice u/s 148 can be issued within 4 years from the end of relevant assessment year if the income escaped does not exceed one lac Rs. If the income escaped is Rs. one lac or more the notice u/s 148 can be issued within 6 years from the end of relevant assessment year subject to the provisions of section 151.

Further first proviso to section 147 provides that if the assessment has been completed u/s 143(3) no action can be taken u/s 147 after the expiry of 4 years from the end of relevant assessment year unless any income chargeable to tax has escaped assessment for such assessment year by reason of the failure on the part of the assessee to make a return under section 139 or in response to a notice issued under sub-section (1) of section 142 or section 148 or to disclose fully and truly all material facts necessary for his assessment, for that assessment year.

What to do when notice u/s 148 is received: when a notice u/s 148 is received the assessee is asked to file a return of the relevant assessment year. After filling the return the assessee should ask for the copy of reasons recorded for issue of notice u/s 148 and can file objection to the issuance of notice. The assessee should ask specifically assessing officer to pass a speaking order by disposing off the objections giving reference of the Judgment of Honorable Supreme Court in GKN Driveshafts (India) Ltd vs ITO (2003) 259 ITR 19 (SC). The objections should be filled giving reasons for challenging the legality of the notice u/s 148. All this procedure has been laid down by the Honorable Supreme court in GKN Driveshafts (India) Ltd case. This procedure has been provided by the Honorable Supreme court to enable the assessee to file writ petition before the respective High court challenging the legality of the notice u/s 148 before the assessment is completed.

Evan if the assessment order has been passed and the matter is in appeal the assessee can still file writ petition in the high court challenging the legality of notice u/s 148 and the consequent assessment if the above said procedure as laid down by the Supreme court in GKN Driveshafts (India) Ltd case is not followed. But for that assessee off course will have to show that he asked for the copy of reasons for issue of notice u/s 148 and filled objections to that and asked the assessing officer to pass a separate reasoned order disposing off the objections filled and deciding on the legality of the notice issued u/s148.

CA Saiyum khan (Practicing CA) (690 Points)
Replied 02 April 2011

Originally posted by : JMD
	Frnz, I've received a notice u/s 148 for A.Y 06-07. I want to know till how much year notice from IT Dept. cud be issued for a particular A.Y. year. whether 5 yeras or 6???/

Section 149 provides that notice u/s 148 can be issued within 4 years from the end of relevant assessment year if the income escaped does not exceed one lac Rs. If the income escaped is Rs. one lac or more the notice u/s 148 can be issued within 6 years from the end of relevant assessment year subject to the provisions of section 151.

Further first proviso to section 147 provides that if the assessment has been completed u/s 143(3) no action can be taken u/s 147 after the expiry of 4 years from the end of relevant assessment year unless any income chargeable to tax has escaped assessment for such assessment year by reason of the failure on the part of the assessee to make a return under section 139 or in response to a notice issued under sub-section (1) of section 142 or section 148 or to disclose fully and truly all material facts necessary for his assessment, for that assessment year.

JMD (STUDENT) (563 Points)
Replied 04 April 2011

thanks a lot both of u....:)

angshuman das (tax consultant) (29 Points)
Replied 21 February 2015

If an assessee failed to disclose materials facts in his return , then what is the time limit to issue notice u/s 148 ?

Amit (Accountant) (261 Points)
Replied 22 February 2015

Very simply, during the during the financial year 14-15, notice can be issued u/s 148 for A.Y. 2008-09 and not for any previous years.

Dr. R.L.Garg (Others) (21 Points)
Replied 19 June 2015

if notice 148 issue from AIR for deposing more than 10 lac in saving account is not valid because it is not "Reason to beliefe " but only reason to suspect . Cover under reent Citation Bir Bahdur Singh Sijwali vs Income Tax officer Haldwani - ITA No. 3814/Del/11 dated 20.01.2015.

Dr. R.L.Garg

Mohsin Sayed (4 Points)
Replied 27 October 2018

IN INCOME TAX RETURN U/S 148 IAM FILLING THERE ARE SOME TAX LIABILITES WHICH I HAVED FILLED WITH PAYABLE NOW I HAVE TO PAY THE TAX ON WHICH HEAD I WILL PAY THE TAX AS SELF ASST TAX OR REGULAR ASST TAX PLZ HELP

Mohsin Sayed (4 Points)
Replied 27 October 2018

IN INCOME TAX RETURN U/S 148 IAM FILLING THERE ARE SOME TAX LIABILITES WHICH I HAVED FILLED WITH PAYABLE NOW I HAVE TO PAY THE TAX ON WHICH HEAD I WILL PAY THE TAX AS SELF ASST TAX OR REGULAR ASST TAX PLZ HELP