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Query on Assessment Proc u/s 147

Preeti Agarwal (Articled) (218 Points)

17 May 2010

Dear All,

Please help me on the following :-

Provision of Income Tax :- 1) For assessment proceeding u/s 147, notice u/s 148 is mandatory to issue and for each assessment year seperate notice has to be issued.

2) Untill a notice already is disposed off 2nd notice shall not be issued.

My QUERY IS:-

Whether untill disposal of 1st notice 2nd notice shall not be issued for same assessment year or even for any other assessment year.

For e.g. a notice u/s 148 is given for A.Y. 07-08 and in mean time income escaped for 06-07 is also detected. So whether the assessing officer can issue notice u/s 148 for A.Y. 06-07 before disposal of notice already given for A.Y. 07-08 or he has to wait untill notice already given is disposed off.

Kindly help me on this topic.

Thanks & regards

Preeti Agarwal

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4 Replies

Amir (Learner) (4016 Points)
Replied 17 May 2010

Dear Preeti,

Notice u/s 148 can be issued for any other AY in a case where any assessment is pending in respect of the same assessee....

Pls refer the specific section from where u r drawing this conclusion that "Untill a notice already is disposed off 2nd notice shall not be issued"

daya shankar singh (CA ,CS) (629 Points)
Replied 18 May 2010

As per Explanation 3 to section 147 , For the purpose of assessment or reassement under this section , the AO may assess or reassess the income i.r.o any issue, which has escape assessment, and such issue comes to his notice susequently in the course of the proceedings under this section, notwithstanding that the reasons for such issue have not included in the reasons recorded under 148(2)

So that seprate notice of 148 will not be issued by A.O, if he subsequently finds any escaped income during the course of proceeding

daya shankar singh (CA ,CS) (629 Points)
Replied 22 May 2010

Originally posted by : daya shankar singh
	As per Explanation 3 to section 147 , For the purpose of assessment or reassement under this section , the AO may assess or reassess the income i.r.o any issue, which has escape assessment, and such issue comes to his notice susequently in the course of the proceedings under this section, notwithstanding that the reasons for such issue have not included in the reasons recorded under 148(2) So that seprate notice of 148 will not be issued by A.O, if he subsequently finds any escaped income during the course of proceeding

If the escaped income is related only to the same assessment year, there only no notice u/s 148 issued by AO but if this is related to two different assessment year fresh notice u/s 148 shall be issued by AO even if proceeding is pending u/s 147 of any other assessment year