Show cause notice u/s 148A for not submission of ITR for AY 2017-18

[NIRMAL Kashyap]

Show cause notice u/s 148A for not submission of ITR for AY 2017-18 on the basis of 26AS. Income is taxable but the return was skipped. How to response ?

[Padmanathan KV]

What is the date of SCN? is the income likely to have escaped assessment is more than Rs.50 lakhs? Pls check this factual aspect.

See the provisions of section 149:

149. (1) No notice under section 148 shall be issued for the relevant assessment year,-

(a) if three years have elapsed from the end of the relevant assessment year, unless the case falls under clause (b);

(b) if three years, but not more than ten years, have elapsed from the end of the relevant assessment year unless the Assessing Officer has in his possession books of account or other documents or evidence which reveal that the income chargeable to tax, represented in the form of-

(i) an asset;

(ii) expenditure in respect of a transaction or in relation to an event or occasion; or

(iii) an entry or entries in the books of account,

which has escaped assessment amounts to or is likely to amount to fifty lakh rupees or more:

If income likely to have escaped assessment is less than 50 lakhs, then limitation period for 148 proceedings is 3 years. Hence, check if 148 proceedings are time barred and reply to 148A accordingly to drop proceedings. 

AI Summary

Limitation on reassessment notices: time bar applies unless documents reveal escaped income above the prescribed threshold. Proceedings arise from a show-cause notice for non-filing of return based on Form 26AS; the key question is whether reassessment is time-barred. Reassessment notices are barred by the general limitation unless the Assessing Officer had books, documents or other evidence showing escaped income meeting the statutory threshold that extends limitation. If escaped income is below the threshold, the three-year limitation applies and a time-bar defence should be raised in response to the show-cause notice.