Quick Summary
The Finance Act, 2021 amended the procedure for assessment or reassessment of income in the Act with effect from the 1st April, 2021. The said amendment modified, inter alia, sections 147, section 148, section 149 and also introduced a new section 148A in the Act. In cases where search is initiated
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FAQ :
The initial amendments took effect from 1st April 2021. Further amendments and clarifications were proposed to take effect from 1st April 2022, with some having retrospective effect from 1st April 2021.
The Finance Act 2021 amended sections 147, 148, 149, and introduced a new section 148A.
Yes, it is proposed to insert a new proviso to remove the requirement for approval to issue a notice under section 148 if an order under section 148A(d) has already been passed with prior approval, stating income has escaped assessment. The requirement for approval of a specified authority in clause (b) of section 148A is also proposed to be omitted.
Amendments aim to align search assessment schemes with the Act's intent. This includes making certain provisions applicable to assessment or reassessment under various sections, introducing a new section 148B requiring approval for orders passed by Assessing Officers below the rank of Joint Commissioner, and providing for the exclusion of specific periods from limitation calculations in search cases.
The definition of 'information' under Explanation 1 to section 148 has been clarified to include audit objections, information received from foreign jurisdictions, court order directions, or information from schemes notified under section 135A.
Yes, a notice under section 148 can be issued for assessment years after three but before ten years from the end of the relevant assessment year if the Assessing Officer has evidence revealing escaped income represented as an asset, expenditure, or book entries amounting to fifty lakh rupees or more.
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