SC uphlods over 90,000 re-assessment notices deeming them as sec 148A notices

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The income tax department is working aggressively to tax unaccounted income and the taxpayers now need to be very careful while declaring/her income during Income Tax Return filing. ITR Filing disclosing all income should now be done on time and with transparency. Not doing so will result in a notice from the income department and you might have to face not an only tax on undisclosed income but heavy penalties too. In this article, you will understand the complete news as to why SC uphlods over 90,000 re-assessment notices deeming them as sec 148A notices

What is Income Tax Assessment Under Section 148? 

According to Section 147 of the 1961 Income Tax Act, a person’s previously submitted income tax returns can be re-examined by the Income Tax Department if the income tax office found that any income is not disclosed.

The Assessing Officer may choose your income tax return for reassessment based on certain predefined criteria by delivering a notice under section 148 for income escaping scrutiny.

Thus, Income Tax Act Section 148 governs the sending of notices in cases where income has not been recalculated or assessed. In this provision, it is stated that an Assessing Officer will notify the assessor in concern by presenting him or her with a notice requiring him to file an income tax return again u/s 148 disclosing all the income best known to the assessee and pay the tax on it.

What is the Time Limit Of Issuing an Income Tax Notice Under Section 148?

The notice under Section 148 of the Income Tax Act can be issued within four years of the end of the relevant AY (assessment year) if undisclosed income is up to Rs. One Lac.

If undisclosed income is alleged to be more than Rs. One less than Income Tax Officer can send notice within 6 years from the end of the relevant assessment year.

Furthermore, The notice under section 148 could be issued within a period of 16 years from the end of relevant AY in case the income that has escaped assessment relates to assets located outside India.

Extension of Time Limit of Notice Under Section 148

A Notice cannot be issued under normal circumstances as SC uploads 90000 sec 148A notices 16  years (as specified above) have passed from the end of the relevant assessment year

However, during the covid, the assessing officer was not able to issue notices u/s 148 within time to the assessees. Accordingly, Income Tax Department issued the notification to extend the time limit of issuing notice u/s 148 to 30th June 2021.

What is the Conflict of 90,000 Notices under Section 148?

In pursuant to this notification,  Income Tax Department issued 90,000 notices u/s 148 to the assessor. Against which assessee filed various 90,000 writ petitions before the high court across India.

This notification was quashed by a majority of high courts, including Allahabad, Bombay, Calcutta, Delhi, and Rajasthan, and held that such notice issued after the time limit specified was treated as null and void. Hence, reassessment proceeding u/s 147 could not be initiated.

One notable exception was the Chhattisgarh High Court, which upheld the issue of section 148 reassessment notice after April 1, 2021, under the existing regulations.

Not being satisfied with the judgment of the High Court, Income Tax Department challenges the decision of the High Court before the Supreme Court.

Afterward, The top court panel of Justice M R Shah and Justice B V Nagarathna finally overturned high court decisions that had favored the taxpayers.

Notice under Section 148 deems to be notice u/s 148A

In light of the Finance Act, 2021’s new provisions, the Supreme Court concluded that the High Courts have correctly held that the benefits of the new provisions can be taken advantage of even in cases involving previous assessment years, provided tha tSC uploads 90000 sec148A notices is not violated.

However, at the same time, it was aware of the fact that even if the Finance Act, 2021 and the replaced sections 147 to 151 of the IT Act allow for reassessment processes, the judgments of the numerous High Courts would result in no reassessment proceedings at all, even if the same is lawful.

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As a result, any judgments and orders made by different High Courts on the matter after 01.04.2021 issued under section 148 of the Act are set aside and regulated by the current ruling, that notice under section 148 deemed under section 148A. 

Furthermore, current writ petitions before various High Courts in which comparable notices under Section 148 of the Act issued after 01.04.2021 are challenged would be governed by the present supreme court ruling.


The laws concerning disclosing all income under ITR Filing in India are getting stringent. It’s best to do Income Tax Return Filing on time and accurately. Moreover, you should consult a professional expert to get the right guidance and avail the benefits of ITR Filing while avoiding serious mistakes.

Income Tax Return Filing Due Date Extended for AY 2021-22

Moreover, you require any kind of guidance related to the Income Tax Return Filing, please feel free to contact our business advisors at 8881-069-069.

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