Summary: The reassessment provisions under the Income Tax laws are detailed in various sections, primarily Sections 147 to 151. Section 147 allows the Assessing Officer (A.O.) to assess or reassess income that has escaped assessment following the procedures outlined in Sections 148 to 153. Section 148 mandates the issuance of a notice for reassessment, with a new proviso requiring prior approval from a specified authority if information is received under Section 135A. Section 148A introduces a procedural framework before issuing a notice under Section 148, including issuing a show cause notice to the assessee, receiving a response, and obtaining prior approval for reassessment. Section 149 sets time limits for issuing notices: generally within 3 years and 3 months from the end of the relevant assessment year, or within 5 years and 3 months if the income exceeds Rs. 50 lakhs. Section 151 specifies that the issuance of notices requires sanction from senior authorities such as Additional Commissioners or Joint Directors. These provisions ensure a structured approach to addressing income that may have been overlooked in initial assessments.
Section 147. Income escaping assessment
After complying with the provisions of Section 148 to 153, the A.O. may assess or reassess income which has escaped assessment.
Section 148. Issue of notice where income has escaped assessment
- Clause (1) of this section is related to the issuance of notice by A.O.
New proviso: where A.O. has received information under Section 135A, notice under this section shall not be issued without prior approval of specified authority.
- Clause (2) of this section is related to furnishing return of income by assessee in prescribed manner.
- Clause (3) is related to information based on which reassessment proceedings can be initiated.
Section 148A. Procedure before issuance of notice under Section 148
- Clause (1) of this section is related to the issuance of a show cause notice to the assessee.
- Clause (2) of this section is related to the provision w.r.t. reply by the assessee to the aforesaid notice.
- Clause (3) of this section is related to passing of the order with the prior approval of specified authority for initiating reassessment proceedings.
- Clause (4) of this section is related to non-applicability of Section 148A, in case, information received by the A.O. u/s 135A.
Section 149. Time limit for notice.
- Time limits for issuing notice under section 148:
b) 5 years and 3 months from end of relevant A.Y. where income escaping assessment amounts to or is likely to amount to Rs. 50 lakhs or more.
- Time limits for issuing notice under section 148A:
d) 5 years from end of relevant A.Y. where income escaping assessment amounts to or is likely to amount to Rs. 50 lakhs or more.
Specified Authority shall be Addl. Commissioner or Joint Commissioner or Addl. Director or Joint Director as the case may be.
Also Read:
Revised Guideline for Issue of Section 148 Notice
FAQs on Assessments under Income-tax Law
Notice under section 148 of Income Tax Act, 1961
Reasonableness of Notices issued under section 148 of Income Tax Act
Section 148 Notice can be issued as per law prevalent on issue date
Legality of Second Notice under Section 148 of Income Tax Act, 1961 for Same Assessment Year
How to deal with Section 148 & Section 148A Income Tax Notices
Critical Analysis of New Reassessment Provisions: Section 148, 148A and 149
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