1. Initiation of re-assessment proceedings (issue of notice u/s 148) should be strictly in accordance with the cumulative conditions stipulated in sections 147, 149 & 151 of Income Tax Act, 1961, otherwise same may be void-ab-initio.
2. Accordingly, the notice u/s 148 should be issued within the timeliness specified in the section 149 and also simultaneously satisfying the conditions laid down in sections 147 & 151
3. The summary of assuming jurisdiction to commence re-assessment proceedings are abridged here as under:-
|
S.No |
Conditions |
Timeliness for issue of Notice u/s 148 |
||
|
Before 4 years from end of relevant assessment year |
After 4 years but before 6 years from the end of relevant assessment year |
After 4 years but before 16 years from the end of relevant assessment year |
||
|
1. |
AO must have reason to believe that Income Chargeable to Tax has escaped assessment |
Mandatory |
Mandatory |
Mandatory |
|
2 |
Assessment u/s 143(3) or 147 has been made for relevant assessment year and the Income Chargeable to tax has escaped assessment on account of either of following reasons:-
|
Not Mandatory (For example, even if assessee has disclosed all material facts during the course of assessment of relevant assessment year, It will not bar AO to issue notice u/s 148 within 4 years, if he has reason to believe that income chargeable to tax has escaped assessment) |
Mandatory |
Not Mandatory |
|
3. |
Income Chargeable to Tax, which has escaped assessment for relevant assessment year amounts to or is likely to amount to Rs. 1,00,000 or more. |
Not Mandatory (Irrespective of quantum of income escape assessment) |
Mandatory |
Not Mandatory |
|
4. |
Income in relation to any asset (including financial interest in any entity) located outside India, has escaped assessment for relevant assessment year. |
Not Mandatory |
Not Mandatory |
Mandatory |
|
5. |
Rank of AO for issue of Notice u/s 148, where NO assessment u/s 143(3) or us/ 147 has been made for relevant assessment year |
AO of any rank |
a. AO of any rank below Joint Commissioner, with the approval of Joint Commissioner b. Joint Commissioner |
|
|
6. |
Rank of AO for issue of Notice u/s 148, where assessment u/s 143(3) or us/ 147 has been made for relevant assessment year |
a. AO of any rank below Asstt. Commissioner or Dy. Commission, with the approval of Joint Commissioner b. AO at a rank of Asstt. Commissioner or above. |
AO of any rank with the approval of Commissioner or Chief Commissioner. |
|
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