Time limits for reassessment notices tightened; extensions allowed where Assessing Officer possesses evidence of substantial escaped income.

For notices under section 148, issuance is barred after three years and three months from the end of the relevant assessment year, except that issuance is permitted up to five years and three months where the Assessing Officer possesses books, documents or other evidence indicating escaped income likely to amount to fifty lakh rupees or more. For notices to show cause under section 148A, issuance is barred after three years, subject to extension up to five years where information with the Assessing Officer indicates escaped income likely to amount to fifty lakh rupees or more. Effective from 1st September, 2024.

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