If the search was initiated at Company 1 place and the document of transaction with Person 2 found at the company 1, can the income tax deptt. initiate the notices to person 2 u/s 147 > 132 > 148 or should it be 153?
What is the technical flow of 147 notices or others? Is there a link where one can see the technical processes and can challenge it based on technicals or if some good pointers for merits.
To initiate notices to Person 2, the income tax department would typically follow the procedure under Section 148 of the Income Tax Act, which deals with the issue of notice for reassessment.¹ Since the search was initiated at Company 1's premises and documents related to transactions with Person 2 were found, the income tax department may issue a notice under Section 148 to Person 2. The technical flow of Section 147 notices involves the following steps: - *Information or Evidence*: The Assessing Officer (AO) receives information or evidence that suggests income has escaped assessment. - *Inquiry and Opportunity of Being Heard*: The AO conducts an inquiry and provides the taxpayer with an opportunity to be heard before issuing a notice for reassessment (Section 148A). - *Notice for Reassessment*: The AO issues a notice under Section 148 to the taxpayer, specifying the reasons for reassessment. - *Response and Assessment*: The taxpayer responds to the notice, and the AO conducts an assessment or reassessment of the taxpayer's income. Regarding the specific sections you mentioned: - *Section 147*: Deals with the reassessment of income that has escaped assessment. - *Section 132*: Relates to the search and seizure provisions. - *Section 148*: Concerns the issue of notice for reassessment. - *Section 153*: Deals with the time limit for completion of assessments and reassessments. For more information on the technical processes
To initiate notices to Person 2, the income tax department would typically follow the procedure under Section 148 of the Income Tax Act, which deals with the issue of notice for reassessment.¹ Since the search was initiated at Company 1's premises and documents related to transactions with Person 2 were found, the income tax department may issue a notice under Section 148 to Person 2. The technical flow of Section 147 notices involves the following steps: - *Information or Evidence*: The Assessing Officer (AO) receives information or evidence that suggests income has escaped assessment. - *Inquiry and Opportunity of Being Heard*: The AO conducts an inquiry and provides the taxpayer with an opportunity to be heard before issuing a notice for reassessment (Section 148A). - *Notice for Reassessment*: The AO issues a notice under Section 148 to the taxpayer, specifying the reasons for reassessment. - *Response and Assessment*: The taxpayer responds to the notice, and the AO conducts an assessment or reassessment of the taxpayer's income. Regarding the specific sections you mentioned: - *Section 147*: Deals with the reassessment of income that has escaped assessment. - *Section 132*: Relates to the search and seizure provisions. - *Section 148*: Concerns the issue of notice for reassessment. - *Section 153*: Deals with the time limit for completion of assessments and reassessments. For more information on the technical processes
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