The assessing officer has reason to believe that any income chargeable to tax has escaped assessment than the assessing officer may subject to the provision of section 147 to 153 assess or reassess such income. For assessment or reassessment of the income governed under section 147 r w s 148 of the income tax act 1961.
Who can issue the notice U/s 148 of Income Tax Act?
As per section 151(1) of the income tax act,
- The assessing officer shall not issue the notice u/s 148 after the expiry of the period of four years from the end of the relevant assessment year, before approval of Chief Commissioner.
- The assessing officer shall not issue the notice u/s 148 who is below the rank of Joint Commissioner (JC) unless the JC is satisfied on the reasons recorded by such assessing officer
What is the Time Limit for issuing the Notice under section 148?
|If escaped Income below Rs 1 Lakh
||4 years from the end of the relevant AY
|If escaped Income more than Rs 1 Lakh
||6 years from the end of the relevant AY
|If escaped Income related to foreign assets
||16 years from the end of the relevant AY
What would do when received the Notice U/s 148?
- After receiving the notice U/s 148 the assessee should file the Income Tax return for such assessment mentioned in the notice.
- When the Income tax return has been filed in response to the notice U/s 148 the assessee can demand the Reason to believe on the basis of notice U/s 148 issued by the assessing officer.
- If the assessee found that the reason is to believe is baseless or bogus than the assessee can file the objection against the notice issued by the AO and demand to reject the assessment or reassessment.
- The assessee can file a writ petition in the High Court for challenging the notice issued by the Assessing officer before completed the assessment or reassessment.
- The assessing officer passes the order after considering the assesses objections.