Section 148A(b) Notice: How to Reply and Win
Notice at a Glance
| Parameter | Details |
|---|---|
| Notice type | Show-cause before reassessment |
| What it asks | Why notice under Section 148 should not be issued |
| Minimum reply time | 7 days from date of service |
| Maximum reply time | 30 days from date of service |
| AO must pass order within | 1 month from receiving reply |
| Time limit — income below ₹50 lakh | 3 years from end of relevant AY |
| Time limit — income ₹50 lakh or above | 5 years from end of relevant AY (from 01.09.2024) |
| Notice from | National Faceless Assessment Centre (NFAC) — not jurisdictional AO |
| If AO passes 148A(d) order | He must then issue Section 148 notice separately |
| Supreme Court ruling | Rajeev Bansal vs. Union of India (SC, Oct 2024) — compliance mandatory |
Understanding the Notice Before Drafting the Reply
Receiving a Section 148A(b) notice feels alarming. However, this notice is not a reassessment order. It is a pre-notice show-cause — the department’s mandatory first step before it can even issue a reassessment notice.
Section 148A requires the tax department to issue a show-cause notice before invoking Section 148. This preliminary notice outlines the reasons for suspected escaped income and provides the taxpayer an opportunity to respond. Only after evaluating the response and issuing a reasoned order can the AO proceed with a formal Section 148 reassessment notice. Income Tax India
This is only a preview of the article. The complete article contains detailed analysis, examples, notifications, circulars, case laws, interpretations and practical guidance available to premium members.
🔒 Premium Content
Subscribe to access complete articles, notifications, circulars, case laws, downloads, videos and premium resources.
Become Premium Member