Procedure before issuance of notice under section
148
CA V.K. Subramani
The Finance (No. 2) Bill, 2024 proposes to substitute
section 148A and a close look at the provision would show the changes
proposed.
As per section 148A(1) where the assessing officer has
information which suggests that income chargeable to tax has escaped
assessment, he shall before issuing a notice under section 148 provide an
opportunity of being heard to the assessee. This is sought to be achieved by
serving a show cause notice as to why a notice under section 148 should not be
issued by giving information which suggests the income chargeable to tax has
escaped assessment for the relevant assessment year.
As per section 148A(2), on receipt of notice referred
above, the assessee has to furnish his reply within such period as may be
specified in the notice. As per sub-section (3) of section 148A the assessing
officer on the basis of material available on record and after taking into
account the reply of the assessee furnished in pursuance of notice issued under
section 148A(2), pass an order with the prior approval of 'specified
authority' determining whether it is a fit case to issue notice under
section 148 or otherwise.
The provisions of section 148A would not apply in respect
of income chargeable to tax escaping assessment for any assessment year where
the assessing officer has received information under the scheme notified under
section 135A. Thus, information under the scheme notified under section 135A
shall not be sufficient for invoking section 148A.
The 'specified authority' is the Additional
Commissioner or the Additional Director or the Joint Commissioner or the Joint
Director, for the purpose of approving the order of the assessing officer
whether to proceed with the issue of notice under section 148 or not, referred
to in section 148A(3).
Readers may note the Faceless collection of information
specified in section 135A. In pursuance thereof e-Verification Scheme, 2021
vide Notification S.O. 5187(E), dated 13-12-2021 is now in place.