Query on validity of notice u/s 148

[sudeep srivastava]

A notice u/s 148 was issued to assessee for AY 2021-22 u/s 148 on 31st March 2025 on the basis of search conducted u/s 132 or requsition u/s 132A on 23/10/2024 in case of another person after obtaining prior approval u/s 151 but without issuing notice 148A. The notice states that the conditions of Explanation 2(iv) of Section 148 read with proviso to Section 148A are complied with.

In my opinion Explanation 2(iv) of Section 148 was ommited w.e.f. 1/09/2024 vide Finance Act Section 44 of the Finance (No. 2) Act, 2024 and amended Section 148 is applcaible from 1/4/2025. Also defination of information for the purpose of Section 148 & 148A was amended by amending sub section 3 of Section 148 and case of search and seazure u/s 132 & 132A were removed therefrom.

Thus in the absence of notice u/s 148A whether notice u/s 148 is valid on not. Member are request to give their opinion.

AI Summary

Pre-reopening hearing requirement under section 148A: reopening notice relying on omitted deeming provision is non compliant.
The Finance (No. 2) Act, 2024 omitted the deeming provision that treated search or requisition material in another person's case as "information" for reopening and amended the definition of "information." Where reopening is proposed based on material from a search of another person, the section requiring a pre-reopening opportunity to be heard applies. A section 148 notice issued on 31 March 2025 relying on the omitted deeming fiction, without complying with the section 148A procedure, is not in conformity with the amended statutory framework in force on the date of issuance.