**Section 148: Issue of Notice for Escaped Assessment**
1. Purpose
Section 148 allows the Assessing Officer (AO) to issue a notice to a taxpayer if income that is chargeable to tax has escaped assessment.
2. Key Provisions
1. Notice Issuance:
– The AO must issue a notice to the taxpayer along with a copy of the order passed under Section 148A(3).
– The notice requires the taxpayer to file a return of income for the relevant assessment year within a specified period, not exceeding **3 months** from the end of the month in which the notice is issued.
2. **Preconditions for Issuance**:
– The AO must have **information** suggesting that income has escaped assessment.
– If the information is received under a scheme notified under Section 135A, prior approval from the **specified authority** is required.
3. **Return Filing**:
– The return filed in response to this notice is treated as if filed under Section 139.
– However, a return furnished after the specified period is **not deemed valid** under Section 139.
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#### **3. Information Suggesting Escaped Assessment**
Information prompting the AO to act under Section 148 includes:
1. **Risk Management Information**:
– Details derived from a risk management strategy by the Board.
2. **Audit Objections**:
– Audit observations suggesting non-compliance with tax provisions.
3. **International Agreements**:
– Information received under agreements like Double Tax Avoidance Agreements (DTAA) (Sections 90/90A).
4. **Section 135A Scheme**:
– Information obtained via notified schemes under Section 135A.
5. **Tribunal/Court Orders**:
– Information requiring action as per orders of a Tribunal or Court.
6. **Survey Data**:
– Information from surveys conducted under Section 133A (excluding subsection 2A) after **September 1, 2024**.
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### **Takeaways**
– The AO must follow procedural safeguards under Section 148A before issuing a notice.
– A valid reason or information is essential to invoke Section 148.
– Returns filed after the prescribed period may not be valid, and prior approval is mandatory in some cases.
27[Issue of notice where income has escaped assessment.
148. (1) Before making the assessment, reassessment or recomputation under section 147, the Assessing Officer shall, subject to the provisions of section 148A, issue a notice to the assessee, along with a copy of the order passed under sub-section (3) of section 148A, requiring him to furnish, within such period as may be specified in the notice, not exceeding three months from the end of the month in which such notice is issued, a return of his income or income of any other person in respect of whom he is assessable under this Act during the previous year corresponding to the relevant assessment year:
Provided that no notice under this section shall be issued unless there is information with the Assessing Officer which suggests that the income chargeable to tax has escaped assessment in the case of the assessee for the relevant assessment year:
Provided further that where the Assessing Officer has received information under the scheme notified under section 135A, no notice under this section shall be issued without prior approval of the specified authority.
(2) The return of income required under sub-section (1) shall be furnished in such form and verified in such manner and setting forth such other particulars, as may be prescribed, and the provisions of this Act shall, apply accordingly as if such return were a return required to be furnished under section 139:
Provided that any return of income required under sub-section (1), furnished after the expiry of the period specified in the notice under the said sub-section, shall not be deemed to be a return under section 139.
(3) For the purposes of this section and section 148A, the information with the Assessing Officer which suggests that the income chargeable to tax has escaped assessment means,—
(i) any information in the case of the assessee for the relevant assessment year in accordance with the risk management strategy formulated by the Board from time to time; or
(ii) any audit objection to the effect that the assessment in the case of the assessee for the relevant assessment year has not been made in accordance with the provisions of this Act; or
(iii) any information received under an agreement referred to in section 90 or section 90A of the Act; or
(iv) any information made available to the Assessing Officer under the scheme notified under section 135A; or
(v) any information which requires action in consequence of the order of a Tribunal or a Court; or(vi) any information in the case of the assessee emanating from survey conducted under section 133A, other than under sub-section (2A) of the said section, on or after the 1st day of September, 2024.
