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documents or any assets are limitation for issuance of
requisitioned under section notice under section 148 of
132A of the Act, assessment the Act and it will be deemed
or reassessment is now that the notice is issued on
made under section 147 of 31st March of such financial
the Act. Under the existing year.
provisions, the Assessing ii. In cases where the
Officer is required to conduct information emanates from
a procedure of enquiry as statement recorded or
prescribed in section documents impounded
148Aprior to issuance of notice under section 148. under section 131 or section 133A on or before 31st
The provisions of section 148A is not applicable in March of the financial year, in consequence of
case of search initiated under section 132 or where search or search for which last authorisations is
assets, documents or books are requisitioned under executed or under search requisition which is done
section 132A. However, for survey under section so after 15th March of such year, a period of fifteen
133A, the proceedings under section 148A are days shall be excluded from computing the time
required to be conducted prior to issuance of notice. limit for issuance of notice under section 148 and
also for show cause notice under section 148A(b)
When such search, requisition or survey proceedings
are conducted after 15th March of a financial year, shall be deemed to be issued as on 31st March of the
there is very little time to collate the information and financial year.
issue a notice under section 148 or show cause Increasing the authorities for sanction u/s. 151:
notice under section 148A(b) of the Act. Moreover,
10. Section 151 provides the sanctioning authority
the search is conducted by the Investigation Wing for the issue of notice under section 148.
and the notice is required to be issued by the Under the existing provisions, sanction is required
Assessing Officers. However, evidence of tax evasion
from PCCIT or PDGIT in case re-openingis beyond
may be reflected in the statements recorded or three years from the end of the relevant assessment
documents seized or impounded etc. during such
year. Only in a case where PCCIT or PGDIT is not
action before 31st March, but issuance of notice available, sanction from CCIT or DGIT could be
related to such information or search may go beyond obtained. Now it is provided that, re-opening can be
the time limitation provided due to the procedure
done by CCIT or DGIT also when re-opening is
involved. As mentioned in the explanatory beyond period of three years along with PCCIT and
memorandum to the Finance Bill, that due to these PGDIT.
practical time crunch, important information related
In arriving at the time limits of period of three years
to revenue leakage cannot be proceeded on for
for sanction under section 151(I), the provisions to
searched conducted and information obtained as a
consequence of these searches in the last few days section 149(1) regarding extended period of 15 days
or extensions owing to stay or injunction of any
of any financial year.
court shall be excluded.
Therefore, Section 149 (1) is amended to add a These amendments will be effective from 1st April,
proviso to extend time limits by 15 days int he 2023.
following two scenarios:
11. The scope and effect of the new provision is
i. In case where the search, requisition or survey
being tested before various Courts and Tribunal,
proceedings are conducted after 15thMarch of a
financial year expiring as on 31st March of the said however within 2 year of bringing the new scheme
for reassessment the government had to bring again
financial year, a period of fifteen days shall be
clarification, insertion of new explanation, proviso,
excluded for the purpose of computing the period of
sub sections etc. Inspite of various guidelines laid
31 Maybe that’s what life is… a wink of the eye and winking stars.
