Issue of notice where income has escaped assessment - Section 148 - Upto 31.08.2024 - Income Tax - Ready Reckoner - Income Tax

Issue of notice where income has escaped assessment - Section 148 - Upto 31.08.2024 1. Before making the assessment, reassessment or recomputation under section 147 , the Assessing Officer should serve on the assessee a notice requiring him to furnish a return of income within such period as may be specified in the notice a period of three months from the end of the month in which such notice is issued, or such further period as may be allowed by the Assessing Officer on the basis of an application made in this regard by the assessee [Amended by FA, 2023] Before issuing a notice, the Assessing Officer is required to record reasons for doing so. 2. The return filed in response to notice u/s 148(1) shall be treated as if such return was a return required to be furnished under section 139 and therefore, AO shall a serve a notice u/s 143(2) within a period of 6 months from the end of the FY in which the return is furnished by the assessee to make the assessment under section 147 read with section 143(3) . 3. Notice u/s 148 can be issued only if following conditions are satisfied: A. AO having information which suggest that income has been escaped assessment, Information means: (a) Information in accordance with the risk management strategy formulated by the CBDT such as SFT information u/s 285BA or Information from investing wing u/s 133C . (b) any audit objection to the effect that the assessment in the case of the assessee for the RAY has not been made in accordance with the provisions of this Act; or (c) any information received under DTAA u/s 90 or 90A ; or (d) any information made available to the AO under the scheme notified u/s 135A ; or (e) any Information which requires action in consequence of the order of a Tribunal or Court. B. AO has obtained prior approval of higher authority u/s 151 except when AO passed 148A(d) with approval of higher authority. C. AO has compiled with the procedure given u/s 148A [In cases other than search] . D. Any return of income, required to be furnished by an assessee under this section and furnished beyond the period allowed shall not be deemed to be a return under section 139 . 4. In the following cases it shall be deemed that AO having information- (i) A search is initiated u/s 132 or books of account, other documents or any assets are requisitioned u/s 132A (ii) A survey is conducted u/s 133A other than TDS/TCS survey. (iii) The AO is satisfied, with the prior approval of the PCIT/CIT, that any assets or BOA, documents, seized or requisitioned u/s 132 or 132A in case of any other person, belongs to or pertains to or information relates to the assessee.