In our previous article we had discussed about what is show cause notice u/s 148A(b) of the Income tax act and how to respond it. To read the article CLICK ME.
In this article we shall learn about order issued u/s 148A(d) of the Income tax act and what is notice u/s 148 of the Act and how to respond to it.
Once a response has been submitted against show cause notice u/s 148A(b) of the Income tax act you will receive final order from assessing officer in relation to initiation of reassessment u/s 148A(d) of the Income tax act.
Now let’s read some technical requirements of passing such order under section 148A(d) of the Income tax act.
Relevant extract of Section 148A(d) is as under:
“(d) decide, on the basis of material available on record including reply of the assessee, whether or not it is a fit case to issue a notice under section 148, by passing an order, with the prior approval of specified authority, within one month from the end of the month in which the reply referred to in clause (c) is received by him, or where no such reply is furnished, within one month from the end of the month in which time or extended time allowed to furnish a reply as per clause (b) expires:”
The important pointers from above provision to keep in mind are as under:
As mentioned above, the assessing officer has to decide based on the material available with it and based on the reply submitted by assessee whether the case of assessee is a fit case for reopening.
Such order should be passed within i.e. on or before 30 days from the date when reply from assessee is received or where no reply received then from the last date provided to assessee to file reply.
Further, please check and ask for approval received by assessing officer from competent authority as required while responding the future notices.
Once you have received any order u/s 148A(d) you shall also receive order u/s 148 of the Income tax act which shall be an order to initiate reassessment proceedings and if an approval is received along with order u/s 148A(d) of the act then no approval would be required for passing order u/s 148 of the Act.
Please note that as per Section 149 of the Act, notice u/s 148 needs to be issued within 3 years from the end of assessment year if income escaping assessment does not exceed Rs.50 lakh and within 10 years if income escaping assessment as determined by AO exceeds Rs.50 lakh.
Once, notice is received u/s 148 of the Act, assessee needs to file Income tax return in response to such notice within a period of 3 months from the end of month in which notice u/s 148 is received. Earlier such period was 30 days.
Please note that if you agree with the variation proposed in 148A(d) order, you can include that income and file income tax return and pay additional tax along with interest. However, if you do not agree with it you can either file original return that you might have filed u/s 139 of the Act and if you have not filed any return u/s 139 of the Act you can still file return by disclosing your actual income.
Please note that the return filed u/s 148 of the Act, will not be considered as return filed u/s 139 of the Act. Hence, while submitting the return please choose section under which return is filed as 148 of the Income tax act and you can submit such return by clicking on submit response against notice u/s 148 of the Act on e-filing portal.
Please note that if you don’t file return, AO can assume that as per you total income is zero and make entire addition and charge penalty on entire amount and then AO will also not be required to issue notice u/s 143(2) of the Act if you have not filed return u/s 148 of the Act. Hence, to follow procedure it is advisable to file return against notice u/s 148 of the Act.
Once, you file return against notice u/s 148 of the Act, based on your return and other details available with AO, they will send you notices for getting further details and complete proceedings u/s 147 of the Act.
The above article is just for information purpose, it is advisable to hire a professional for responding to any such notice from Income tax department.
Guidance on above article for Indian Income Tax by:
Naman Maloo (C.A., B.Com)
He is currently working as Partner – Direct Tax with a renowned firm in Jaipur having experience in dealing Assessments before Income Tax authority, Tax Audit, International Taxation, Tax planning for NRI, Business planning and consultation.
E-mail: naman.maloo@jainshrimal.in | LinkedIn: Naman Maloo
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