Simplification of approval regime for issue of notice for re-assessment

[Admin TMI]

Question - What are proposed changes in approval regime for issue of notice for re-assessment in Finance Bill 2015 ?

[Admin TMI]

Simplification of approval regime for issue of notice for re-assessment

Section 151 of the Act provides for sanction from certain authorities before issue of notice for reassessment of income under section 148. Under certain specified circumstances, the Assessing Officer is required to obtain sanction before issue of notice under section 148. Section 151 specifies different sanctioning authorities based on- (i) whether scrutiny under sub-section (3) of section 143 or section 147 has been made earlier or not, (ii) whether notice is proposed to be issued within or after four years from the end of relevant assessment year, and (iii) the rank of the Assessing Officer proposing to issue notice.

To bring simplicity, it is proposed to provide that no notice under section 148 shall be issued by an assessing officer upto four years from the end of relevant assessment year without the approval of Joint Commissioner and beyond four years from the end of relevant assessment year without the approval of the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner.

This amendment will take effect from 1st day of June, 2015.

AI Summary

Proposed Changes to Income Tax Notice Approval Process Under Finance Bill 2015: Section 148 Amendments Effective June 1, 2015. The discussion highlights proposed changes in the approval regime for issuing notices for re-assessment under the Finance Bill 2015. Currently, Section 151 of the Income Tax Act requires sanction from specific authorities before issuing such notices. The proposed simplification mandates that notices under Section 148 cannot be issued within four years from the end of the relevant assessment year without the Joint Commissioner's approval, and beyond four years without approval from higher authorities like the Principal Chief Commissioner. This amendment is set to take effect on June 1, 2015.