Amendment of section 148.
44. In section 148 of the Income-tax Act,––
(i) after the proviso, the following proviso shall be inserted, namely:––
“Provided further that no such approval shall be required where the Assessing Officer, with the prior approval of the specified authority, has passed an order under clause (d) of section 148A to the effect that it is a fit case to issue a notice under this section.”;
(ii) in Explanation 1,––
(a) in clause (i), the word “flagged” shall be omitted;
(b) for clause (ii), the following clauses shall be substituted, namely:––
“(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.”;
(iii) in Explanation 2,––
(a) in clause (ii), the words, brackets and figure “or sub-section (5)” shall be omitted;
(b) in the long line, for the words “for the three assessment years immediately preceding the assessment year relevant to the previous year in which”, the word “where” shall be substituted and shall be deemed to have been substituted with effect from the 1st day of April, 2021.
Notes on Clauses:
Clause 44 seeks to amend section 148 of the Income-tax Act relating to issue of notice where income has escaped assessment.
The said section provides for issuance of notice to a person before making the assessment, reassessment or recomputation under section 147 of the Income-tax Act, requiring such person furnish a return of his income or income of any other person in respect of which he is assessable under the Act, within specified time, in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed.
It is proposed to insert a new proviso under the first proviso to the effect that approval to issue notice under the said section 148 shall not be required where the Assessing Officer, with the prior approval of the specified authority has passed an order under clause (d) of section 148A that it is a fit case to issue a notice under the said section.
It is also proposed to amend Explanation 1 to the said section to provide that for the purposes of the said section and section 148A of the Act, 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.
It is also proposed to amend clause (ii) of Explanation 2 of the said section to omit the reference of sub-section (5) of section 133A.
These amendments will take effect from the lst April, 2022.
It is also proposed to amend Explanation 2 to the said section to provide that the Assessing Officer shall be deemed to have information which suggests that the income chargeable to tax has escaped assessment in the case of the assessee where the search is initiated or books of account, other documents or any assets are requisitioned or survey is conducted in the case of the assessee or money, bullion, jewellery or other valuable article or thing or books of account or documents are seized or requisitioned in case of any other person.
This amendment will take effect retrospectively from lst April, 2021.
