Under the new previsions, before issuing notice, AO is required to comply with procedure under Section 148A. Earlier to 1.4.2021 before issue of notice u/s148 reason recorded by AO was the requirement . Now from 1.4.2021 issue of notice u/s 148A which is an opportunity to the assessee to explain his case when revenue requires it to be reopened .
a) 148(A)(a) :AO to conduct enquiry, if required, with prior approval
b) 148A(b) :Opportunity of being heard to be given to assesses, with prior approval .
c) 148A(c):AO to consider reply of assesses.
d) 148A(d): Order to be passed by as to whether it is a fit case for issuance of notice u/s 148, with prior approval .
First Step is AO has with him information , he has to make an enquiry ,and then has to give an opportunity to the assessee to explain his case . if assessee submits his reply AO has to consider reply of the assessee and pass an appropriate order .
AO to give an opportunity to assesses to reply as to why a notice under section 148 should not be issued on the basis of information which suggest that income chargeable to tax has escaped assessment in his case for the relevant assessment year and results of enquiry conducted, if any, as per clause 148A(a);
Minimum 7 days; maximum 30 days period to be given to respond to from date of notice; period further can be extended .
Order to be passed within 1 month from the end of the month in which the reply under section 148A(c.) is received by AO, where no such reply is furnished, within 1 month from the end of the month in which time or extended time allowed to furnish a reply as per 148A(b) expires.
148A is not applicable in the following cases .
148A non-applicability: Procedure under Section 148A is not applicable in following cases:
Search under Section 132: A search is initiated under section 132 on or after the 1st day of April, 2021 in the case of the assesses or
Requisition under Section 132A: Books of account, other documents or any assets are requisitioned under Section 132A, on or after the 1st day of April, 2021 in the case of the assesses; or
Asset seized or requisitioned during search belongs to another assesses: AO is satisfied, with the prior approval of the Principal Commissioner, that any money, bullion, jewelry or other valuable article or thing, seized or requisitioned under section 132 or section 132A in case of any other person on or after the 1st day of april,2021, belongs to the assesses
Documents seized or requisitioned during search relates to pertains to another assesses: AO is satisfied, with the prior approval of principal commissioner or Commissioner, that any books of account or documents, seized or requisitioned under section 132 or 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 assesses,
Cases which comes to the notice of the AO during the course of reassessment proceedings [Explanation to section 147]
Reason to believe taken care of by adopting procedure under section 148A
While there is no requirement under the new provision for there to be a ‘reason to believe’ on the part of the AO before issuance of notice, as was earlier required under Section 147, however, under the new regime, before issuing notice, AO is required to comply with procedure under Section 148A.
The procedure under section 148A, in a way, takes care of the ‘reason to believe’ as the order under section 148A(d) to the effect that the case is fit for issuance of notice under section 148 should be a reasoned and speaking order.
Further, it is pertinent to note that there is a requirement to seek approval at every stage i.e., before inquiry [148A(a)], before issuing notice to assesses [148A(b)] and before passing order [148(d)]. Approval has to be obtained from the PCIT or CIT of the concerned jurisdiction.
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