AI Drafter 
TaxTMI 
TaxTMI 
Guidelines for issuance of notice u/s 148 of the Income Tax Act, 1961
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....tice under Section 148 stands amended. This has necessitated a revision of the existing guidelines on the subject issued vide F.No.247/140/2017-A&PC-1 dated 10.01.2018. In view of the above, in supersession of the earlier guidelines as referred above, the following new guidelines are hereby issued. 2. The salient features of Finance Act, 2021 and Finance Act, 2022 w.r.t. Section 148 to 151A 'i.e. assessment/reassessment procedure of "Income Escaping Assessment" are as under: 2.1 Before issuing notice u/s 148, the Assessing Officer (AO) must observe the following procedures laid down u/s 148A except in certain categories of cases (specified in the proviso to section 148A): i. Notice under section 148 can be issued only if there is an information with the assessing officer which suggest that income chargeable to tax has escaped assessment in the case of assessee for the relevant assessment year. Information has been defined as per Explanation 1 of Section 148 of the Act. Explanation 1- Information with the AO which suggests that the income chargeable to tax has escaped assessment‑ (i) any information in the case of the assessee for the relevant ....
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....or documents are seized or requisitioned in case of any other person. iii. Proviso' to section 148A provides that in the following category of cases the provisions of Section 148A shall not apply, if, (a) a search is initiated under section 132 or books of account, other documents or any assets are requisitioned under section 132A in the case of the assessee on or after the 1st day of April, 2021; or (b) the Assessing Officer is satisfied, with the prior approval of the Principal Commissioner or Commissioner that any money, bullion, jewellery or other valuable article or thing, seized in a search under section 132 or requisitioned under section 132A, in the case of any other person on or after the 1st day of April, 2021, belongs to the assessee; or (c) the Assessing Officer is satisfied, with the prior approval of the Principal Commissioner or Commissioner that any books of account or documents, seized in a search under section 132 or requisitioned under section 132A, in case of any other person on or after the 1st day of April, 2021, pertains or pertain to, or any information contained therein, relate to, the assessee; or (d) the Assess....
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.... for the purposes of computing the period of limitation as per this section, the time or extended time allowed to the assessee, as per show-cause notice issued under clause (b) of section 148A or the period during which the proceeding under section 148A is stayed by an order or injunction of any court, shall be excluded. x. Further, as per 4th proviso to section 149, where immediately after the exclusion of the period referred to in the immediately preceding proviso (i.e. 3rd proviso), the period of limitation available to the Assessing Officer for passing an order under clause (d) of section 148A is less than seven days, such remaining period shall be extended to seven days and the period of limitation under this sub-section shall be deemed to be extended accordingly. xi. The AO has to consider the reply of assessee furnished, if any, in response to the show-cause notice referred to in clause (b) of section 148A before passing the order u/s 148A(d). xii. The AO shall mandatorily pass a speaking order u/s 148A(d) in all cases with the 'prior approval of the specified authority' ( Annexure- A2) for such order u/s. 148A (d), except in the cases covered in P....
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....he statutory timelines given in Section 149 for issue of notice specified shall not apply for the purpose of making an assessment or reassessment or recomputation in consequence of or to give effect to any finding or direction contained in an order passed by any authority in any proceeding under this Act by way of appeal, reference or revision or by a Court in any proceeding under any other law. 5. As far as possible the Assessing officer to make endeavor that at the stage of compliance of provisions u/s 148A/ issuance of notice u/s 148, all issues even if spread over more than one assessment year may be taken up simultaneously e. information suggesting escapement of income relating to a particular assessee for more than one AY may be reopened at one go. 6. The Assessing officer, as far as possible, may dispose all such pending matters relating to passing of orders u/s 148A(d)/ issuance of notice u/s 148 on a continuous basis rather than towards close to time barring date. This will enable passing of reasoned orders. Supervisory authorities are hereby advised to keep an effective supervision and monitor the progress of disposal of these work on continuous basis. 7. The pre....
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....DIN- Document Identification No. Guidelines for Enclosures • The AO should enclose copy of all the relevant "Information" available on which reliance is being placed, along with supporting documents (if any). • In the cases where information is received from the Investigation Wing or any other law enforcement agency, details of letter, brief summary of information along with relevant portion of such report and details of relied upon documents may be enclosed. Such a portion as does not bear reference to the assessee concerned may be appropriately redacted. • Details of enquiry conducted, if any, may be shared if reliance is being placed by the AO on it. • Judicial order (i.e. case laws) on which reliance is being placed, if any. *Refer Explanation 1 and Explanation 2 of Section 148 for what constitutes "information". Annexure-A2 Proforma for approval by the Specified Authority 1. Name of the assessee 2. Address and e-mail of the assessee 3. PAN 4. Status 5. Circle/Ward/Range/ CIT Charge &nbs....
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....gnation of CCIT) Dated: Approval of Specified Authority 22. Reasons for according approval/rejection by the specified authority for issuance of notice under section 148 of the Income Tax Act, 1961? (Name and designation of PCCIT/CCIT/PCIT) Dated: Approval/rejection for issuance of notice u/s 148- 21. Recommendations of the CCIT (where PCCIT is the specified authority) (Name and designation of CCIT) Dated: Sanction by Specified Authority 22. Reasons for according approval/rejection by the specified authority for issuance of notice under section 148 of the Income Tax Act, 1961? (Name and designation of PCCIT/CCIT/PCIT) Dated: Annexure-A3 GOVERNMENT OF INDIA MINISTRY OF FINANCE INCOME TAX DEPARTMENT OFFICE OF THE------ (Designation of AO along with Office address) To, PAN: A.Y: Dated: DIN & Notice No: Name of the assessee &n....
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...., the AO will specify the quantum of income/asset/expenditure/entry which has escaped assessment. • The AO shall pass an order under this subsection with the approval of "specified authority". The AO will also bring out the how the notice is not beyond the statutory limitation u/s 149 of the Act. ITNS Annexure-B GOVERNMENT OF INDIA MINISTRY OF FINANCE INCOME TAX DEPARTMENT OFFICE OF THE------ (Designation of AO along with Office address) To, PAN: A.Y: Dated: DIN & Notice No: Notice under section 148 of the Income-tax Act,1961 Sir/ Madam/,M/s. 1. (A) I have the following information in your case or in the case of the person in respect of which you are assessable under the Income tax Act, 1961 (hereinafter referred to as "the Act") for Assessment Year_______.- □ information in accordance with the risk management strategy formulated in this regard; □ audit objection has been raised in your case to the effect that the assessment has not been made in accordance with the provisions of Act; □ information under an agreement referred to in sect....