Time limit for Notice - Section 149 - Income Tax - Ready Reckoner - Income Tax

Time limit for Notice - Section 149(1) 1. Notice u/s 148 can be issued - (a) Up to 3 years from the end of relevant assessment year, or (b) Up to 10 years from the end of relevant assessment year, Unless AO has in his possession books of A/c's or other documents or evidence which reveal that income chargeable to tax in the form of - (i) an asset, include immovable property, being land or building or both, shares and securities, loans and advances, deposits in bank account. (ii) expenditure in respect of a transaction in relation to an event or an occasion ; or (iii) an entry or entries in the books of account, which has escaped assessment amount to or is likely to amount to ₹ 50 lakh or more for that year 2. The provisions of section 149(1) shall not apply in a case, where a notice under section 153A, or section 153C read with section 153A, is required to be issued in relation to a search initiated under section 132 or books of account, other documents or any assets requisitioned under section 132A, on or before the 31st day of March, 2021. Notice u/s 148 cannot be issued for assessment year 2021-22 or earlier AY's if such notice could not have been issued as per old provision of section 149 . As per old provision of section 149 notice could be issued up to 6 years from end of relevant assessment year if income escaping amounts to ₹ 1 Lakh or more . 3 Time Limit to issue of notice exclude while computing period u/s 149 Time or extended time allowed to assessee to file response of SCN u/s 148A ; and Time during which proceedings u/s 148A stayed by order of any court. 4. Where due to stay order or injunction of any court, If AO is having less than 7 days does not exceed 7 days [Amended by FA, 2023 ] to pass order u/s 148A then AO will get time of 7 days to pass order u/s 148A and time period to issue notice u/s 148 shall also be increased accordingly. 5. Where the income in the form of an asset or expenditure in relation to an event or occasion of the value of ₹ 50 lakhs or more, has escaped assessment and the investment in such asset or expenditure in relation to such event or occasion has been made or incurred, in more than 1 PY's, a notice u/s 148 shall be issued for every such AY for assessment or reassessment [ Section 149(1A) ] [ Inserted vide Finance Act, 2022 w.e.f., 01-04-2022] 6. Extended time limit of 15 days would be available in the following cases - (a) Where search is initiated or a search for which the last of the authorization is executed or requisition is made u/s 132A after the 15th march of any financial year [ in cases where the AO is deemed to have information suggesting that income has escaped assessment as per explanation 2 to section 148 ] (b) Where the information as referred to in explanation 1 to section 148 emanates from statement recorded or documents impounded u/s 131 i.e. summons or section 133A i.e., survey as the case may be, on or before the 31st March of a financial year, in consequence of, a search initiated or last of the authorization executed under section 132 or a requisition made under section 132A, after the 15th march of such financial year. and the period for issue of notice under section 148 expire on the 31st march of such financial year. In such cases, a period of 15 days shall be excluded for the purpose of computing this period of limitation as per section 149. Further, notice issue under section 148 and the show cause notice issued u/s 148A(b), as the case maybe, shall be deemed to have been issued on the 31st march of such financial year. Specified authority would continue to be same even where the time period is extended by 15 days.