Section 148A: The Complete Professional Commentary
Section at a Glance
| Parameter | Position Under IT Act 1961 |
|---|---|
| Inserted by | Finance Act, 2021 (w.e.f. 01.04.2021) |
| Latest amendment | Finance (No.2) Act, 2024 — effective 01.09.2024 |
| IT Act 2025 equivalent | Section 281 |
| Purpose | Mandatory pre-notice procedure before Section 148 reassessment |
| Core requirement | Show-cause notice + opportunity to assessee + speaking order |
| 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 |
| Maximum time for Section 148 notice | 3 years 3 months / 5 years 3 months from end of AY |
| Approval authority | Additional/Joint Commissioner or Director |
| Governing case law | Rajeev Bansal vs. Union of India, SC (Oct 2024) |
| Key change post 01.09.2024 | Formal inquiry step removed; SCN issued directly on information |
The Bare Provision — What Section 148A Says
Section 148A, as substituted by Finance (No.2) Act 2024 and operative from 01.09.2024, provides:
The Assessing Officer shall, before issuing notice under Section 148, issue a show-cause notice to the assessee — accompanied by the information that suggests income has escaped assessment — and provide a reasonable opportunity (not less than 7 days and not more than 30 days) to respond. Thereafter, the AO shall, with the prior approval of the specified authority, pass an order determining whether it is a fit case for issuing notice under Section 148.
Continue Reading...
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.
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