The Central Board of Direct Taxes(CBDT) has issued Guidelines for issuance of notice u/s 148 of Income Tax Act 1961.
In view of substitution of Section 147 / 148/ 149/ 151, amendments in Section 151A and insertion of Sections 148A in the Income-tax Act, 1961 (“Act”) vide Finance Act, 2021 and Finance Act, 2022, the procedure for issuance of notice under Section 148 stands amended. This has necessitated a revision of the existing guidelines on the subject issued vide F.No.247 / 140/2017-A&PC-1 dated 10.01.2018. In view of the above, in supersession of the earlier guidelines as referred above, the following new guidelines are hereby issued.
Before issuing notice u/s 148, the Assessing Officer (AO) must observe the following procedures laid down u / s 148A except in certain categories of cases ( specified in the proviso to section 148A):
i. Notice under section 148 can be issued only if there is an information with the assessing officer which suggest that income chargeable to tax has escaped assessment in the case of assessee for the relevant assessment year. Information has been defined as per Explanation 1 of Section 148 of the Act.
ii. Further, explanation 2 to section 148 provides the incidence where assessing officer shall be deemed to have information.
iii. Proviso’ to section 148A provides that in the following category of cases the provisions of Section 148A shall not apply, if,
(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, 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.
iv. The AO shall, if required, undertake enqumes on any “information” received/ available with him which suggests that the income chargeable to tax has escaped assessment in a previous year only with the prior approval of “specified authority”.
v. If the result of enquiry /information available suggests that the income chargeable to tax has escaped assessment, the AO shall provide an opportunity of being heard to the assessee by issuing a show cause notice u/s 148A(b) of the Act. The said notice shall provide between 7 to 30 days’ time to the assessee for submitting the reply.
vi. As per 3rd proviso to section 149, for the purposes of computing the period of limitation as per this section, the time or extended time allowed to the assessee, as per show-cause notice issued under clause (b) of section 148A or the period during which the proceeding under section 148A is stayed by an order or injunction of any court, shall be excluded.
