• Reassessment under section 148: Reasons to believe

Hi all,

I received a notice from ATO on 08-Apr-2015 under section 148 for reassessment of income for the FY 2008-2009 AY 09-10. The assessment of this was completed in Sep-2011 with no further tax liability found. As a response to notice under section 148, I requested ATO to provide me copy of 'recorded reasons to believe'. I sent this response on 22-Apr-2015. 
Till date, I haven't received any response back from ATO. Also I read today that ATO has to supply me the 'reasons to believe' latest before the expiry of 6 years from relevant assessment year, which was 09-10. Therefore, 31-Mar-2016 was the last date by which ATO should have provided me the reasons. 
In view of the above, I think that the notice under section 148 is time barred and should be quashed. Am I correct in interpreting this?
Thanks a lot in advance for you reply.

Asked 2 years ago in Income Tax from Perth, Haryana
The document wherein the reason  to believe has been recorded as well the approval of the JCIT/CIT has been received , should be obtained to analyse the reason  of notice u/s 148  . The AO is not obliged to send  the copy of the satisfaction note along with the notice and in case you require you can request that either directly or through the AR .
The limitation works on the issue of notice and not on the serve of the notice . Further once notice has been issued U/s 148 . The limitation is not linked with the issue of satisfaction note .
if the case is in Delhi the undersigned can offer professional service to you . You can contact u on -prakash@psc.co.in
Prakash Sinha
CA, New Delhi Area, India
120 Answers
16 Consultations

4.9 on 5.0

Dear Ashish,

There is no time limit for supplying the reason to believe. Time limit is for issuing notice under section 148. If he has issued the notice within time limit then the notice is valid subject to any other discrepancies in the notice like - reason to believe is not a good reason etc.

Thanks and Regards,
CA Abhishek Dugar
Abhishek Dugar
CA, Mumbai
2944 Answers
125 Consultations

5.0 on 5.0

I Agree with Mr Prakash Sinha
Shiv Kumar Agarwal
CA, Delhi
258 Answers
58 Consultations

5.0 on 5.0

Dear Sir

The Time limit of 6 years is for servcing of the Notice u/s. 148 and not for giving the reasons for the reassessment. The request and provision of reasons for reassessment are all part of the post issue of notice activities.

In my opinion, if the Assessing officer has served the notice before 31st of March, then the notice is valid and the other procedures (giving the reasons for selection for reassessement) does not come under the above time limit.
B S Sridhar
CA, Chennai
43 Answers
17 Consultations

5.0 on 5.0

No Sir,

It appears that you have interpreted it wrongly. The Time limit of 6 years is for servcing of the Notice u/s. 148 and not for giving the reasons for the reassessment. So the AO is not time barred in his act, and can legally do so.

Trust this clarifies your query. 

Feel free to get back/ call back for any further clarifications. 

Thanking You. 

Rohit R Sharma
Rohit R Sharma
CA, Mumbai
2104 Answers
91 Consultations

5.0 on 5.0

I think the same is being answered by my other professional colleagues. 

Then also I submit that your case is opened till 31-03-2017. You need to just check whether the AO has sent you another notice U/s. 143(2) of the It Act for scrutiny purpose. 
Shyam Sunder Modani
CA, Hyderabad
1408 Answers
95 Consultations

5.0 on 5.0

Ask a Chartered Accountant

Get tax answers from top-rated CAs in 1 hour. It's quick, easy, and anonymous!
  Ask a CA