June 19, 2023

Time limit for completion of assessment, reassessment and recomputation (1) No order of assessment shall be made under section 143 or section 144 at any time after the expiry of twenty-one months from the end of the assessment year in which the income was first assessable: Provided that in respect of an order of assessment relating to the assessment year commencing on the 1st day of April, 2018, the provisions of this sub-section shall have effect, as if for the words “twenty-one months”, the words “eighteen months” had been substituted: 36[Provided further that in respect of an order of assessment relating to the assessment year commencing on—   (i) the 1st day of April, 2019, the provisions of this sub-section shall have effect, as if for the words “twenty-one months”, the words “twelve months” had been substituted;  (ii) the 1st day of April, 2020, the provisions of this sub-section shall have effect, as if for the words “twenty-one months”, the words “eighteen months” had been substituted:] 37[Provided also that in respect of an order of assessment relating to the assessment year commencing on 38[***] the 1st day of April, 2021, the provisions of this sub-section shall have effect, as if for the words “twenty-one months”, the words “nine months” had been substituted:] 39[Provided also that in respect of an order of assessment relating to the assessment year commencing on or after the 1st day of April, 2022, the provisions of this sub-section shall have effect, as if for the words “twenty-one months”, the words “twelve months” had been substituted.] 40[(1A) Notwithstanding anything contained in sub-section (1), where a return under sub-section (8A) of section 139 is furnished, an order of assessment under section 143 or section 144 may be made at any time before the expiry of 41[twelve] months from the end of the financial year in which such return was furnished.] (2) No order of assessment, reassessment or recomputation shall be made under section 147 after the expiry of nine months from the end of the financial year in which the notice under section 148 was served: Provided that where the notice under section 148 is served on or after the 1st day of April, 2019, the provisions of this sub-section shall have effect, as if for the words “nine months”, the words “twelve months” had been substituted. (3) Notwithstanding anything contained in sub-sections (1) 42[, (1A)] and (2), an order of fresh assessment 43[or fresh order under section 92CA, as the case may be,] in pursuance of an order under section 254 or section 263 or section 264, setting aside or cancelling an assessment, 43[or an order under section 92CA, as the case may be], may be made at any time before the expiry of nine months from the end of the financial year in which the order under section 254 is received by the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner or, as the case may be, the order under section 263 or section 264 is passed by the 44[Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner, as the case may be] : Provided that where the order under section 254 is received by the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner or, as the case may be, the order under section 263 or section 264 is passed by the 44[Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner, as the case may be,] on or after the 1st day of April, 2019, the provisions of this sub-section shall have effect, as if for the words “nine months”, the words “twelve months” had been substituted. 45[(3A) Notwithstanding anything contained in sub-sections (1), (1A), (2) and (3), where an assessment or reassessment is pending on the date of initiation of search under section 132 or making of requisition under section 132A, the period available for completion of assessment or reassessment, as the case may be, under the said sub-sections shall,—  (a) in a case where such search is initiated under section 132 or such requisition is made under section 132A;  (b) in the case of an assessee, to whom any money, bullion, jewellery or other valuable article or thing seized or requisitioned belongs to;  (c) in the case of an assessee, to whom any books of account or documents seized or requisitioned pertains or pertain to, or any information contained therein, relates to, be extended by twelve months.] (4) Notwithstanding anything contained in 46[sub-sections (1), (1A), (2), (3) and (3A)], where a reference under sub-section (1) of section 92CA is made during the course of the proceeding for the assessment or reassessment, the period available for completion of assessment or reassessment, as the case may be, under the said 46[sub-sections (1), (1A), (2), (3) and (3A)], shall be extended by twelve months. (5) Where effect to an order under section 250 or section 254 or section 260 or section 262 or section 263 or section 264 is to be given by the Assessing Officer 47[or the Transfer Pricing Officer, as the case may be,] wholly or partly, otherwise than by making a fresh assessment or reassessment 47[or fresh order under section 92CA, as the case may be], such effect shall be given within a period of three months from the end of the month in which order under section 250 or section 254 or section 260 or section 262 is received by the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner, as the case may be, the order under section 263 or section 264 is passed by the 48[Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner, as the case may be] : Provided that where it is not possible for the Assessing Officer 47[or the Transfer Pricing Officer, as the case may be,] to give effect to such order within the aforesaid period, for reasons beyond his control, the Principal Commissioner or Commissioner on receipt of such request in writing from the Assessing Officer 47[or the Transfer Pricing Officer, as the case may be], if satisfied, may allow an additional period of six months to give effect to the order: Provided further that where an order under section 250 or section 254 or section 260 or section 262 or section 263 or section 264 requires verification of any issue by way of submission of any document by the assessee or any other person or where an opportunity of being heard is to be provided to the assessee, the order giving effect to the said order under section 250 or section 254 or section 260 or section 262 or section 263 or section 264 shall be made within the time specified in sub-section

Other provision (1) In an assessment, reassessment or recomputation made under section 147, the tax shall be chargeable at the rate or rates at which it would have been charged had the income not escaped assessment. (2) Where an assessment is reopened under section 147, the assessee may, if he has not impugned any part of the original assessment order for that year either under sections 246 to 248 or under section 264, claim that the proceedings under section 147 shall be dropped on his showing that he had been assessed on an amount or to a sum not lower than what he would be rightly liable for even if the income alleged to have escaped assessment had been taken into account, or the assessment or computation had been properly made : Provided that in so doing he shall not be entitled to reopen matters concluded by an order under section 154, 155, 260, 262, or 263. Practice area’s of B K Goyal & Co LLP Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | FSSAI Registration | Company Registration | Company Audit | Company Annual Compliance | Income Tax Audit | Nidhi Company Registration| LLP Registration | Accounting in India | NGO Registration | NGO Audit | ESG | BRSR | Private Security Agency | Udyam Registration | Trademark Registration | Copyright Registration | Patent Registration | Import Export Code | Forensic Accounting and Fraud Detection | Section 8 Company | Foreign Company | 80G and 12A Certificate | FCRA Registration |DGGI Cases | Scrutiny Cases | Income Escapement Cases | Search & Seizure | CIT Appeal | ITAT Appeal | Auditors | Internal Audit | Financial Audit | Process Audit | IEC Code | CA Certification | Income Tax Penalty Notice u/s 271(1)(c) | Income Tax Notice u/s 142(1) | Income Tax Notice u/s 144 |Income Tax Notice u/s 148 | Income Tax Demand Notice  Company Registration Services in major cities of India Company Registration in Jaipur | Company Registration in Delhi | Company Registration in Pune | Company Registration in Hyderabad | Company Registration in Bangalore | Company Registration in Chennai | Company Registration in Kolkata | Company Registration in Mumbai | Company Registration in India Our Offices CA in Delhi | CA in Jaipur | CA in Gurgaon | CA Firm in India

Provision for cases where assessment is in pursuance of an order on appeal, etc (1) Notwithstanding anything contained in section 149, the notice under section 148 may be issued at any time 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. (2) The provisions of sub-section (1) shall not apply in any case where any such assessment, reassessment or recomputation as is referred to in that sub-section relates to an assessment year in respect of which an assessment, reassessment or recomputation could not have been made at the time the order which was the subject-matter of the appeal, reference or revision, as the case may be, was made by reason of any other provision limiting the time within which any action for assessment, reassessment or recomputation may be taken. Practice area’s of B K Goyal & Co LLP Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | FSSAI Registration | Company Registration | Company Audit | Company Annual Compliance | Income Tax Audit | Nidhi Company Registration| LLP Registration | Accounting in India | NGO Registration | NGO Audit | ESG | BRSR | Private Security Agency | Udyam Registration | Trademark Registration | Copyright Registration | Patent Registration | Import Export Code | Forensic Accounting and Fraud Detection | Section 8 Company | Foreign Company | 80G and 12A Certificate | FCRA Registration |DGGI Cases | Scrutiny Cases | Income Escapement Cases | Search & Seizure | CIT Appeal | ITAT Appeal | Auditors | Internal Audit | Financial Audit | Process Audit | IEC Code | CA Certification | Income Tax Penalty Notice u/s 271(1)(c) | Income Tax Notice u/s 142(1) | Income Tax Notice u/s 144 |Income Tax Notice u/s 148 | Income Tax Demand Notice  Company Registration Services in major cities of India Company Registration in Jaipur | Company Registration in Delhi | Company Registration in Pune | Company Registration in Hyderabad | Company Registration in Bangalore | Company Registration in Chennai | Company Registration in Kolkata | Company Registration in Mumbai | Company Registration in India Our Offices CA in Delhi | CA in Jaipur | CA in Gurgaon | CA Firm in India

Practice Area Income Tax Return Filing Income Tax Appeal Income Tax Notice GST Registration GST Return Filing FSSAI Registration Company Registration Company Audit Company Annual Compliance Income Tax Audit Nidhi Company Registration LLP Registration Accounting in India NGO Registration NGO Audit ESG BRSR Private Security Agency Udyam Registration Trademark Registration Copyright Registration Patent Registration Import Export Code Forensic Accounting and Fraud Detection Section 8 Company Foreign Company 80G and 12A Certificate FCRA Registration DGGI Cases Scrutiny Cases Income Escapement Cases Search & Seizure CIT Appeal ITAT Appeal  Auditors Internal Audit Financial Audit Process Audit IEC Code CA Certification Income Tax Penalty Notice u/s 271(1)(c) Income Tax Notice u/s 142(1) Income Tax Notice u/s 144 Income Tax Notice u/s 148 Income Tax Demand Notice Psara License FCRA Online Time limit for notice Section 149 of the Income Tax Act lays down the rules for when the tax department can issue a notice under section 148 of Income Tax Act 1961 for reassessment of income. Here’s a simplified explanation: Time Limit: The tax department cannot issue a notice for reassessment if more than three years have passed since the end of the relevant assessment year, unless certain conditions are met. These conditions include cases where the income that escaped assessment is fifty lakh rupees or more, and the evidence for this is found within three to ten years from the end of the relevant assessment year. Example: If for the assessment year 2018-19, income of fifty lakh rupees or more was not assessed, the tax department can issue a notice for reassessment within three to ten years from the end of that assessment year. Exception for Certain Cases: No notice can be issued for assessment years before April 1, 2021, if it couldn’t have been issued earlier due to time limits specified in the law before April 1, 2021. Exclusion of Time: In certain situations, like when a search is initiated under section 132 or documents are impounded under section 131, a period of fifteen days is excluded from the time limit calculation. Multiple Investments: If income represented by an asset or expenditure has escaped assessment in multiple years within the specified time frame, a notice for reassessment can be issued for each of those years. Subject to Section 151: These rules are subject to the provisions of section 151, which deals with the authorization for issuing a notice for reassessment. This section ensures that the tax department can reassess income that was not assessed properly within a specified time frame and under certain conditions. Section 149 of Income Tax Act 1961 (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); 27[(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:] Provided that no notice under section 148 shall be issued at any time in a case for the relevant assessment year beginning on or before 1st day of April, 2021, if 28[a notice under section 148 or section 153A or section 153C could not have been issued at that time on account of being beyond the time limit specified under the provisions of clause (b) of sub-section (1) of this section or section 153A or section 153C, as the case may be], as they stood immediately before the commencement of the Finance Act, 2021: Provided further that the provisions of this sub-section shall not apply in a case, where a notice under section 153A, or section 153C read with section 153A, is required to be issued in relation to a search initiated under section 132 or books of account, other documents or any assets requisitioned under section 132A, on or before the 31st day of March, 2021: 29[Provided also that for cases referred to in clauses (i), (iii) and (iv) of Explanation 2 to section 148, where,—  (a) a search is initiated under section 132; or  (b) a search under section 132 for which the last of authorisations is executed; or  (c) requisition is made under section 132A, after the 15th day of March of any financial year and the period for issue of notice under section 148 expires on the 31st day of March of such financial year, a period of fifteen days shall be excluded for the purpose of computing the period of limitation as per this section and the notice issued under section 148 in such case shall be deemed to have been issued on the 31st day of March of such financial year: Provided also that where the information as referred to in Explanation 1 to section 148 emanates from a statement recorded or documents impounded under section 131 or section 133A, as the case may be, on or before the 31st day of March of a financial year, in consequence of,—  (a) a search under section 132 which is initiated; or  (b) a search under section 132 for which the last of authorisations is executed; or  (c) a requisition made under section 132A, after the 15th day of March of such financial year, a period of fifteen days shall be excluded for the purpose of computing the period of limitation as per this section and the notice issued under clause (b) of section 148A in such case shall be deemed to have been issued on the 31st day of March of such financial year:] Provided also that 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: Provided also that where immediately after the exclusion of the period referred to in

Prior approval for assessment, reassessment or recomputation in certain cases No order of assessment or reassessment or recomputation under this Act shall be passed by an Assessing Officer below the rank of Joint Commissioner, in respect of an assessment year to which clause (i) or clause (ii) or clause (iii) or clause (iv) of Explanation 2 to section 148 apply except with the prior approval of the Additional Commissioner or Additional Director or Joint Commissioner or Joint Director.] Practice area’s of B K Goyal & Co LLP Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | FSSAI Registration | Company Registration | Company Audit | Company Annual Compliance | Income Tax Audit | Nidhi Company Registration| LLP Registration | Accounting in India | NGO Registration | NGO Audit | ESG | BRSR | Private Security Agency | Udyam Registration | Trademark Registration | Copyright Registration | Patent Registration | Import Export Code | Forensic Accounting and Fraud Detection | Section 8 Company | Foreign Company | 80G and 12A Certificate | FCRA Registration |DGGI Cases | Scrutiny Cases | Income Escapement Cases | Search & Seizure | CIT Appeal | ITAT Appeal | Auditors | Internal Audit | Financial Audit | Process Audit | IEC Code | CA Certification | Income Tax Penalty Notice u/s 271(1)(c) | Income Tax Notice u/s 142(1) | Income Tax Notice u/s 144 |Income Tax Notice u/s 148 | Income Tax Demand Notice  Company Registration Services in major cities of India Company Registration in Jaipur | Company Registration in Delhi | Company Registration in Pune | Company Registration in Hyderabad | Company Registration in Bangalore | Company Registration in Chennai | Company Registration in Kolkata | Company Registration in Mumbai | Company Registration in India Our Offices CA in Delhi | CA in Jaipur | CA in Gurgaon | CA Firm in India

Conducting inquiry, providing opportunity before issue of notice under section 148 Introduction Taxation is a complex web that often requires diligent oversight by authorities to ensure everyone pays their fair share. Section 148A of the Income Tax Act, 1961, plays a crucial role in this oversight, outlining the steps the Assessing Officer must take before issuing a notice under section 148. The Journey of Section 148A: A Step-by-Step Breakdown 1. Enquiry with Specified Authority Approval (Subsection (a)): Before initiating any action, the Assessing Officer needs to conduct an inquiry, seeking prior approval from the specified authority. This step is vital in ensuring that the information suggesting an escape of taxable income is thoroughly examined. 2. Notice to Show Cause (Subsection (b)): Once the inquiry is completed, the assessee is given an opportunity to be heard. A notice is served, allowing a window of seven to thirty days for the assessee to respond. An extension may be granted upon application. 3. Consideration of Assessee’s Reply (Subsection (c)): The reply furnished by the assessee in response to the show-cause notice is carefully considered. This step ensures a fair evaluation of the assessee’s perspective in light of the information gathered during the inquiry. 4. Decision Making (Subsection (d)): Taking into account the material available, including the assessee’s reply, the Assessing Officer decides whether issuing a notice under section 148 is warranted. This decision is made within one month from the end of the month in which the reply is received. Exceptions to Section 148A i. Search Initiated or Assets Requisitioned (Proviso (a)): Section 148A does not apply if a search is initiated under section 132 or assets are requisitioned under section 132A post April 1, 2021. ii. Seizure or Requisitioned Items Linked to the Assessee (Proviso (b) & (c)): The Assessing Officer can bypass Section 148A if satisfied, with prior approval, that seized items or documents relate to the assessee. iii. Information under Section 135A Scheme (Proviso (d)): Receiving information about income escaping assessment under the scheme notified under section 135A also exempts the application of Section 148A. FAQ on Section 148A of Income Tax Act, 1961 Q1. Why is prior approval needed for an inquiry under Section 148A?A1. Prior approval ensures a second layer of scrutiny, adding a checks-and-balances system to prevent arbitrary actions. Q2. Can the notice period be extended beyond thirty days?A2. Yes, upon application, the Assessing Officer may extend the notice period beyond thirty days. Q3. Are there situations where Section 148A doesn’t apply?A3. Yes, instances like a search initiation or requisition of assets post April 1, 2021, fall under exemptions. Conclusion: Section 148A of the Income Tax Act, 1961, provides a structured approach to dealing with potential escaped income. By ensuring a fair and thorough investigation, it strikes a balance between the interests of the authorities and the rights of the assessee. As taxpayers, understanding these provisions helps us navigate the intricate landscape of taxation in the Indian context. Section 148A, of Income Tax Act, 1961 Section 148A, of Income Tax states that: The Assessing Officer shall, before issuing any notice under section 148,—  (a) conduct any enquiry, if required, with the prior approval of specified authority, with respect to the information which suggests that the income chargeable to tax has escaped assessment;  (b) provide an opportunity of being heard to the assessee, 23[***] by serving upon him a notice to show cause within such time, as may be specified in the notice, being not less than seven days and but not exceeding thirty days from the date on which such notice is issued, or such time, as may be extended by him on the basis of an application in this behalf, as to why a notice under section 148 should not be issued on the basis of information which suggests that income chargeable to tax has escaped assessment in his case for the relevant assessment year and results of enquiry conducted, if any, as per clause (a);  (c) consider the reply of assessee furnished, if any, in response to the show-cause notice referred to in clause (b);  (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: Provided that the provisions of this section shall not apply in a case where,—  (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, 24[relate to, the assessee; or  (d) the Assessing Officer has received any information under the scheme notified under section 135A pertaining to income chargeable to tax escaping assessment for any assessment year in the case of the assessee.] Explanation.—For the purposes of this section, specified authority means the specified authority referred to in section 151.] Practice area’s of B K Goyal & Co LLP Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration |

Practice Area Income Tax Return Filing Income Tax Appeal Income Tax Notice GST Registration GST Return Filing FSSAI Registration Company Registration Company Audit Company Annual Compliance Income Tax Audit Nidhi Company Registration LLP Registration Accounting in India NGO Registration NGO Audit ESG BRSR Private Security Agency Udyam Registration Trademark Registration Copyright Registration Patent Registration Import Export Code Forensic Accounting and Fraud Detection Section 8 Company Foreign Company 80G and 12A Certificate FCRA Registration DGGI Cases Scrutiny Cases Income Escapement Cases Search & Seizure CIT Appeal ITAT Appeal  Auditors Internal Audit Financial Audit Process Audit IEC Code CA Certification Income Tax Penalty Notice u/s 271(1)(c) Income Tax Notice u/s 142(1) Income Tax Notice u/s 144 Income Tax Notice u/s 148 Income Tax Demand Notice Psara License FCRA Online Section 148 of the Income Tax Act, 1961, lays down the procedure for the Income Tax Department to reassess or recompute a taxpayer’s income if it believes that some income hasn’t been properly assessed. Let’s break it down: Notice Requirement: Before reassessing or recomputing income, the Assessing Officer must serve a notice to the taxpayer. This notice must be issued within a certain time frame, usually three months from the end of the relevant month. The taxpayer then has to file their income return within this period. Reason for Notice: The Assessing Officer can only issue this notice if they have information suggesting that some taxable income hasn’t been assessed properly. They need approval from a higher authority before issuing such a notice. Exceptions to Approval Requirement: In certain cases, if the Assessing Officer already has approval from the higher authority, they can issue the notice without needing further approval. Late Filing: If the taxpayer fails to file their return within the specified time, it won’t be considered as a regular return filing under Section 139 of the Income Tax Act. What Counts as Information: Information suggesting unassessed income can come from various sources like audits, international agreements, schemes notified by the government, or court orders. Special Circumstances: If a search, survey, or seizure is conducted concerning the taxpayer or related to their assets or documents, it’s automatically considered as information suggesting unassessed income. Now, let’s simplify this with an example: Imagine you’re a taxpayer in India, and you’ve filed your income tax return. However, the Income Tax Department suspects that you might have additional income that you haven’t declared properly. In such a case, they would send you a notice asking for further information and possibly asking you to file a revised return. This notice would only be sent if they have solid reasons to believe there’s undisclosed income, and they usually need approval from a higher authority to do so. For instance, if during an audit, it’s found that your income hasn’t been assessed correctly, the Assessing Officer might issue a income tax notice under Section 148 to reassess your income. Similarly, if there’s a search conducted at your premises, the department automatically assumes there might be undisclosed income, and they can proceed with reassessment without further approvals. In summary, Section 148 of the Income Tax Act allows the department to ensure that taxpayers accurately report their income and pay the correct amount of tax, even if it means revisiting previously filed returns. Section 148, of Income Tax Act 1961 : Issue of notice where income has escaped assessment Before making the assessment, reassessment or recomputation under section 147, and subject to the provisions of section 148A, the Assessing Officer shall serve on the assessee a notice, along with a copy of the order passed, if required, under clause (d) of section 148A, requiring him to furnish within 15[a period of three months from the end of the month in which such notice is issued, or such further period as may be allowed by the Assessing Officer on the basis of an application made in this regard by the assessee], a return of his income or the income of any other person in respect of which he is assessable under this Act during the previous year corresponding to the relevant assessment year, in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed; and the provisions of this Act shall, so far as may be, apply accordingly as if such return were a return required to be furnished under section 139: Provided that no notice under this section shall be issued unless there is information with the Assessing Officer which suggests that the income chargeable to tax has escaped assessment in the case of the assessee for the relevant assessment year and the Assessing Officer has obtained prior approval of the specified authority to issue such notice: 16[Provided further that no such approval shall be required where the Assessing Officer, with the prior approval of the specified authority, has passed an order under clause (d) of section 148A to the effect that it is a fit case to issue a notice under this section:] 17[Provided also that any return of income, required to be furnished by an assessee under this section and furnished beyond the period allowed shall not be deemed to be a return under section 139.] Explanation 1.—For the purposes of this section and section 148A, the information with the Assessing Officer which suggests that the income chargeable to tax has escaped assessment means,—   (i) any information 18[***] in the case of the assessee for the relevant assessment year in accordance with the risk management strategy formulated by the Board from time to time;*or 19[(ii) any audit objection to the effect that the assessment in the case of the assessee for the relevant assessment year has not been made in accordance with the provisions of this Act; or  (iii) any information received under an agreement referred to in section 90 or section 90A of the Act; or  (iv) any information made available to the Assessing Officer under the scheme notified under section 135A; or   (v) any information which requires action in consequence of the order of a Tribunal or a Court.] Explanation 2.—For the purposes of this section,

Practice Area Income Tax Return Filing Income Tax Appeal Income Tax Notice GST Registration GST Return Filing FSSAI Registration Company Registration Company Audit Company Annual Compliance Income Tax Audit Nidhi Company Registration LLP Registration Accounting in India NGO Registration NGO Audit ESG BRSR Private Security Agency Udyam Registration Trademark Registration Copyright Registration Patent Registration Import Export Code Forensic Accounting and Fraud Detection Section 8 Company Foreign Company 80G and 12A Certificate FCRA Registration DGGI Cases Scrutiny Cases Income Escapement Cases Search & Seizure CIT Appeal ITAT Appeal  Auditors Internal Audit Financial Audit Process Audit IEC Code CA Certification Income Tax Penalty Notice u/s 271(1)(c) Income Tax Notice u/s 142(1) Income Tax Notice u/s 144 Income Tax Notice u/s 148 Income Tax Demand Notice Psara License FCRA Online Section 147 of the Income Tax Act, 1961 allows the Assessing Officer to assess or reassess any income that should have been taxed but was not included in the original assessment for a particular year. This applies if the officer discovers income that was not previously assessed, even if the taxpayer didn’t follow certain notification procedures. Here’s a simplified explanation with examples of section 147 of Income Tax Act: Let’s say Mr. Sharma didn’t report some of his rental income in his tax return for the financial year 2020-21. The Assessing Officer, upon discovering this discrepancy later on, can use Section 147 to reassess Mr. Sharma’s income for that year and ensure the missing rental income is taxed. Similarly, if a business claimed excessive deductions for expenses that were not valid under the law, and this was not caught during the initial assessment, the Assessing Officer can reassess the business’s income under Section 147 to correct the error and calculate the correct tax liability. In essence, Section 147 empowers tax authorities to rectify any omissions or errors in the original assessment to ensure that taxpayers are paying the correct amount of tax. Section 147 of the Income Tax Act, 1961: Income escaping assessment If any income chargeable to tax, in the case of an assessee, has escaped assessment for any assessment year, the Assessing Officer may, subject to the provisions of sections 148 to 153, assess or reassess such income or recompute the loss or the depreciation allowance or any other allowance or deduction for such assessment year (hereafter in this section and in sections 148 to 153 referred to as the relevant assessment year). Explanation.—For the purposes of assessment or reassessment or recomputation under this section, the Assessing Officer may assess or reassess the income in respect of any issue, which has escaped assessment, and such issue comes to his notice subsequently in the course of the proceedings under this section, irrespective of the fact that the provisions of section 148A have not been complied with.] Q&A on Section 147 of the Income Tax Act, 1961: Q: What is Section 147 of the Income Tax Act, 1961? A: Section 147 empowers the Income Tax Officer (ITO) to reassess your income if he believes taxable income has escaped assessment in any previous year. This means the ITO can add any missed income to your tax liability, even if you unintentionally forgot or omitted it in your original return. Q: Can the ITO use Section 147 just because they suspect I missed income? A: No, the ITO needs a valid reason to believe income has escaped assessment. This could be based on information received from third parties, discrepancies in your accounts, or unexpected increases in your wealth. Mere suspicion is not enough. Q: How long does the ITO have to use Section 147? A: The ITO generally has four years from the end of the relevant assessment year to initiate a reassessment under Section 147. Q: What can I do if I disagree with the ITO’s reassessment under Section 147? A: You have the right to appeal the reassessment order to the Commissioner of Income Tax (CIT). If you’re still not satisfied, you can further appeal to the Income Tax Appellate Tribunal (ITAT) and ultimately to the courts. Q: How can I avoid getting into trouble with Section 147? A: The best way to avoid a reassessment under Section 147 is to be accurate and complete when filing your income tax return. Disclose all income sources, maintain proper records, and seek professional advice if you’re unsure about anything. Q: I think I may have made a mistake on my return. Can I fix it before the ITO notices me? A: Yes, you can file a revised income tax return before the ITO starts any proceedings under Section 147. This can help you rectify any errors and potentially reduce your tax liability.   Q: How can I know if any proceeding is going on for any Assessement year under section 147 in my case ? A: To check if any proceeding is pending in your case under section 147 or if any proceeding is being opened under section 147 of Income Tax Act for any assessement year, you can either simply contact your jurisdictional assessing officer or you can login to your Income Tax Account on the Income Tax Departement website. The proceedings can be checked in the e-proceeding section or the details of the jurisdictional assessing officer can be checked in my profile section on the website. Remember: Consulting a qualified tax advisor is always recommended for personalized advice on your specific situation. Please note that this is not an exhaustive list of questions and answers. For more detailed information or specific legal advice, please consult a tax professional.

Sanction for issue of notice  Specified authority for the purposes of section 148 and section 148A shall be,—  (i) Principal Commissioner or Principal Director or Commissioner or Director, if three years or less than three years have elapsed from the end of the relevant assessment year;  (ii) Principal Chief Commissioner or Principal Director General or 33[***] Chief Commissioner or Director General, if more than three years have elapsed from the end of the relevant assessment year:] 34[Provided that the period of three years for the purposes of clause (i) shall be computed after taking into account the period of limitation as excluded by the third or fourth or fifth provisos or extended by the sixth proviso to sub-section (1) of section 149.] Practice area’s of B K Goyal & Co LLP Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | FSSAI Registration | Company Registration | Company Audit | Company Annual Compliance | Income Tax Audit | Nidhi Company Registration| LLP Registration | Accounting in India | NGO Registration | NGO Audit | ESG | BRSR | Private Security Agency | Udyam Registration | Trademark Registration | Copyright Registration | Patent Registration | Import Export Code | Forensic Accounting and Fraud Detection | Section 8 Company | Foreign Company | 80G and 12A Certificate | FCRA Registration |DGGI Cases | Scrutiny Cases | Income Escapement Cases | Search & Seizure | CIT Appeal | ITAT Appeal | Auditors | Internal Audit | Financial Audit | Process Audit | IEC Code | CA Certification | Income Tax Penalty Notice u/s 271(1)(c) | Income Tax Notice u/s 142(1) | Income Tax Notice u/s 144 |Income Tax Notice u/s 148 | Income Tax Demand Notice  Company Registration Services in major cities of India Company Registration in Jaipur | Company Registration in Delhi | Company Registration in Pune | Company Registration in Hyderabad | Company Registration in Bangalore | Company Registration in Chennai | Company Registration in Kolkata | Company Registration in Mumbai | Company Registration in India Our Offices CA in Delhi | CA in Jaipur | CA in Gurgaon | CA Firm in India

Reopening of assessment at the instance of the assessee [Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.] Practice area’s of B K Goyal & Co LLP Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | FSSAI Registration | Company Registration | Company Audit | Company Annual Compliance | Income Tax Audit | Nidhi Company Registration| LLP Registration | Accounting in India | NGO Registration | NGO Audit | ESG | BRSR | Private Security Agency | Udyam Registration | Trademark Registration | Copyright Registration | Patent Registration | Import Export Code | Forensic Accounting and Fraud Detection | Section 8 Company | Foreign Company | 80G and 12A Certificate | FCRA Registration |DGGI Cases | Scrutiny Cases | Income Escapement Cases | Search & Seizure | CIT Appeal | ITAT Appeal | Auditors | Internal Audit | Financial Audit | Process Audit | IEC Code | CA Certification | Income Tax Penalty Notice u/s 271(1)(c) | Income Tax Notice u/s 142(1) | Income Tax Notice u/s 144 |Income Tax Notice u/s 148 | Income Tax Demand Notice  Company Registration Services in major cities of India Company Registration in Jaipur | Company Registration in Delhi | Company Registration in Pune | Company Registration in Hyderabad | Company Registration in Bangalore | Company Registration in Chennai | Company Registration in Kolkata | Company Registration in Mumbai | Company Registration in India Our Offices CA in Delhi | CA in Jaipur | CA in Gurgaon | CA Firm in India