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assessment of revenue, in absence of same being
reflected in notice, assessment yet being made of said
amount would be prima facie bad in law
24. Concept of deemed information for 10 years. In
search/survey Cases
i Notice u/s 148 can be issued in cases of
search/requisition for 10 assessment years, in
the case of "person searched" or in the case of
"other person" immediately preceding the
assessment year relevant to the previous year in
which search/requisition (on or after 01-04-
2021)is carried out.
ii No inquiry/notice is required to be issued u/s
148A in any of the 10 assessment years in cases
of search/requisition.
iii Only one requirement is that approval from
prescribed authority is required before issue of
notice u/s 148 insearch/requisition cases.
iv Approval for initial 3 assessment years
immediately preceding the assessment year
relevant to the previous year in which
search/requisition is required u/s 151(i) and for
subsequent 4th to 10th assessment year
approval is required u/s 151(ii).
v As per section 149(1)(b) escaped income should
be Rs. 50 lakh or more in one year or in aggregate
for more than one year and is represented by an
asset/expenditure/entry.
vi In case of survey notice u/s 148A is required
before issue of notice u/s 148.
Key Points :
A. Prior approval of specified authorities is required
for any such enquiry/order to be passed u/s148A
of the Act.
B. Speaking order for section 148A(d) is required to
be passed.
C. Procedure under section 148A shall not be
applicable in case of search, survey or requisition
cases initiated or made or conducted.
D. In case proceeding u/s. 148A are stayed, the
period of limitation for issuance of the notice u/s
148, would be extended by 7 days if the available
time limit is of less than 7 days.
37 Live in the sunshine, swim the sea, drink the wild air.
E. Once the reassessment proceeding u/s. 147 is
initiated and subsequently some issue has been
noticed by the Assessing Officer, for that
subsequent issue, no requirement to comply
with the provision of section148A.
F. Substitution of Section 151[Sanction for Issue of
notice]
G. Reopening shall be based on information Explan.
1 to sec 148 of the Act.
H. The reassessment proceedings can't be initiated
for verification purposes on pure suspicion and
surmises without anybona-fide existence of
belief.
I. Material/information relied by the AO for
reopening the assessment should be provided to
the assessee so that he can meet the allegation
of the assessee effectively.
J. Assessee has right for responding to the notice
u/s. 148A(b) of the Act and seek necessary
information and material relied upon .
Conclusion:
To my reading of the provision, the fundamental
change is in the procedure, power to review is still
not available with the AO nor he can reopen the
assessment for making general roving enquiry, the
information should be tangible and suggesting
escapement of income. Merely on suspicion
reopening is not permissible. Over all finality to an
assessment will not be till next 10 years though safe
guards are provided to keep checks on arbitrary
reopening, however recent experience shows there
will be uncertainty till various issues are once again
settled by High Courts. Assessee will have to
maintain the books of accounts, vouchers and all the
details for ten years.