Clarification in section 148(2)

Tax queries 1179 views 2 replies

CA.Swathi Jain

155 Points Joined March 2010

Under reasons to be recorded for reopening the assessment under section 147-Income escaping assessment, the reasons for initiating the reassessment have to be recorded before service of notice to the assesse under section 148.

The question is whether the reasons for reopening should be sent to the assesse before or along with the notice issued under section 148?

Is it mandatory to send the reasons recorded by the IT dept or they are furnished only after they are asked for by the assesse?

if they are sent by the IT dept after they have been asked for by the assesse, after sending the notice, then how can the assesse make sure that the reasons were recorded before sending 148 notice?

Replies (2)

Guest

It will work like this

For doing 147 --> record reasons --> get approval 151 --> signed u/s 149 --> served u/s 148 --> file the ROI -->ask for the reasons --> if reasons are based on rumors/gossip go for writ.

Reasons are never sent to the assessee before or alongwith the notice. It must be produced if assessee demands it. Assessee can demand it in writing only after filing of ROI. Not to mention this ROI cannot be revised.

U can make sure proper reasons are recorded or not after filing of ROI and that to through writ.

Arvind Sharma

ACA

1432 Points Joined May 2009

Originally posted by : kaushal
	It will work like this For doing 147 --> record reasons --> get approval 151 --> signed u/s 149 --> served u/s 148 --> file the ROI -->ask for the reasons --> if reasons are based on rumors/gossip go for writ. Reasons are never sent to the assessee before or alongwith the notice. It must be produced if assessee demands it. Assessee can demand it in writing only after filing of ROI. Not to mention this ROI cannot be revised. U can make sure proper reasons are recorded or not after filing of ROI and that to through writ.

agreed.....

In case of inadequate reason so recorded, assessee can go for writ challenging validity of Notice u/s 148.

However, in case of not fillinf writ AND co-operating in assessment proceeding, the procedding will get valid and notice can't be invalidate through writ or in appeals..