Issue of notice where income has escaped assessment
Section 148 of the Income-tax Act, 1961 deals with issue of notice where income has escaped assessment. 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 pe The Act came into force on 01 Apr 1962. Repealed by the Income-tax Act, 2025 with effect from 1 April 2026, but conduct before that date is still charged, tried and appealed under it.
(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 being less than thirty days from the date of such notice but] 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 accor- dance 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.
Section 148, The Income-tax Act, 1961 (Act 43 of 1961).
Now in the Income-tax Act
INCOME-TAX-ACT-2025 280 Issue of notice where income has escaped assessment Official correspondence
Measured by comparing the text of the two provisions, not taken from an official correspondence table — there is no machine-readable one. See both texts side by side before relying on it.
Both regimes are live. The repealed enactment still governs what happened while it was in force. We never redirect one to the other.
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
This section refers to
Referred to by 39
- Finance Act s. 24 Voluntary disclosure of income
- Finance Act s. 43 Amendment of section 148
- Finance Act s. 64 Charge of tax on voluntarily disclosed income
- Finance Act s. 36 Amendment of section 148
- Finance Act s. 41 Substitution of new section for section 148
- Finance Act s. 42 Insertion of new section 148A
- Finance Act s. 44 Amendment of section 148
- Finance Act s. 72 Amendment of section 148
- Finance Act, 2024 (No. 2) s. 44 Substitution of new sections for sections 148 and 148A
- Finance Act s. 10 Amendment of section 148
- s. 119 Instructions to subordinate authorities
- s. 124 Jurisdiction of Assessing Officers
and 27 more
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Union of India v. Ashish Agarwal
Court's Decision & Legal Precedent
Under Article 142, post-01.04.2021 reassessment notices issued under unamended s.148 are deemed s.148A(b) show-cause notices pan-India; AOs must supply material, pass s.148A(d) orders, and may then issue substituted s.148 notices, preserving assessee defences including s.149.
On this section: Unamended s.148 notices are saved by converting them into the s.148A pathway rather than wholesale quash — direct construction of the reassessment transition.
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Union Of India vs Rajeev Bansal
Court's Decision & Legal Precedent
The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act 2020 (TOLA), enacted to extend time limits for completing actions during the COVID-19 pandemic, continues to apply to reassessment proceedings under the Income Tax Act after 1 April 2021 when the Finance Act 2021 substituted the reassessment provisions. TOLA extends the time limit for issuing reassessment notices under Section 148 and for obtaining sanction under Section 151 until 30 June 2021 for all actions falling for completion between 20 March 2020 and 31 March 2021. Reassessment notices issued under the old regime between 1 April 2021 and 30 June 2021 are deemed to be show-cause notices under Section 148A(b) of the new regime, and reassessment notices under the new regime issued in pursuance thereof must be issued within the time surviving under the Income Tax Act read with TOLA, failing which they are time-barred. The surviving time is calculated by excluding (a) the period during which show-cause notices were deemed stayed due to non-supply of material and (b) the period allowed to assessee to respond to show-cause notice.
On this section: Requires notice to assessee before reassessment - key procedural requirement, substituted by Finance Act 2021 with substantially different requirements
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Union Of India vs Rajeev Bansal
Court's Decision & Legal Precedent
TOLA continues to apply to the Income Tax Act after Finance Act 2021 came into effect on 1 April 2021, extending the time limit for issuance of reassessment notices till 30 June 2021. The first proviso to Section 149(1)(b) of the new regime does not bar application of TOLA. Reassessment notices issued after 30 June 2021 are time-barred. The directions in Ashish Agarwal judgment deeming Section 148 notices under old regime as show-cause notices under Section 148A of new regime apply to all 90,000 notices issued between 1 April 2021 and 30 June 2021, creating a legal fiction that stops the clock of limitation. The surviving time for issuance of notices under Section 148 of the new regime is the balance time between the date of issuance of the deemed notice and 30 June 2021, after excluding periods when proceedings were stayed and time allowed to assesses to respond.
On this section: Requirement to issue notice based on reason to believe income escaped assessment; applied to notices issued April-June 2021
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Union Of India vs Rajeev Bansal
Court's Decision & Legal Precedent
1. TOLA 2020 continues to apply to reassessment procedures under Income Tax Act even after Finance Act 2021 substituted the regime on 1 April 2021, provided the action falls for completion between 20 March 2020 and 31 March 2021. 2. The non obstante clause in Section 3(1) of TOLA overrides Section 149 of Income Tax Act only to the extent of relaxing the time limit for issuance of reassessment notices; it does not extend the time limit of three years (or six years for pre-April 2021 assessments) prescribed by the Income Tax Act itself. 3. Section 151 relating to grant of sanction by specified authority is subject to TOLA to the extent that the time limit of three years falls between 20 March 2020-31 March 2021, thereby extending to 30 June 2021 the time for grant of sanction. 4. The legal fiction created in Ashish Agarwal by deeming Section 148 notices under old regime as Section 148A(b) show cause notices under new regime operates with effect from the date of original issuance of the notices, and the surviving time limit for issuance of reassessment notices under new regime must be calculated after accounting for exclusions specified in the third proviso to Section 149. 5. Reassessment notices issued under Section 148 of the new regime in pursuance of the deemed show cause notices must be issued within the surviving time limit under Income Tax Act read with TOLA; all notices issued beyond this surviving period are time-barred and liable to be set aside. 6. The directions in Ashish Agarwal judgment extend PAN INDIA to all ninety thousand reassessment notices issued under the old regime between 1 April 2021 and 30 June 2021, including those not individually challenged before courts.
On this section: Old regime: notice under this section must be issued within time limit specified under Section 149; new regime: notice must be based on prior information and with prior approval of specified authority and subject to Section 148A
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Union Of India vs Rajeev Bansal
Court's Decision & Legal Precedent
After 1 April 2021, when Finance Act 2021 substitutes Sections 147-151 of Income Tax Act, the new regime applies to reassessment proceedings for past assessment years. However, the TOLA extended time limits (till 30 June 2021) continue to apply to reassessment notices that fall for completion between 20 March 2020 and 31 March 2021. The reassessment notices issued under the old regime between 1 April 2021 and 30 June 2021 are deemed to have been issued as show-cause notices under the new regime with effect from their original date of issuance. The surviving time limit for issuing reassessment notices under the new regime in pursuance of such deemed notices is the balance of days between the original issuance date and 30 June 2021 (the TOLA extended deadline). All reassessment notices issued under the new regime beyond the surviving time limit calculated under the Income Tax Act read with TOLA are time-barred and liable to be set aside.
On this section: Procedure for issuance of reassessment notice; old regime notice under old regime; new regime notice with approved information and prior approval requirements
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Principal Commissioner of Income Tax vs Gahoi Foods Pvt. LTD
Court's Decision & Legal Precedent
In a case where a search under Section 132 or requisition under Section 132A of the Income Tax Act, 1961 has been conducted, the Assessing Officer assumes jurisdiction to assess or reassess the total income under Section 153A only for: (a) all pending assessments/reassessments which shall stand abated and be assessed afresh as a unified assessment for the six preceding assessment years; and (b) completed/unabated assessments, only if and to the extent incriminating material relating to those assessment years is found or unearthed during the search or requisition. In the absence of incriminating material being found during search in respect of any completed/unabated assessment within the six-year block period, the Assessing Officer cannot assess or reassess the total income taking into consideration other material available on record, but the completed assessments remain binding, subject to the Revenue's preserved right to initiate reassessment proceedings under Sections 147/148 of the Act, subject to fulfilment of the statutory conditions specified therein.
On this section: Requirement for recording reasons when reopening assessment under Section 147
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Pr. Commissioner of Income Tax vs Gahoi Food Pvt. LTD
Court's Decision & Legal Precedent
In case of search under Section 132 or requisition under Section 132A of the Income Tax Act, 1961, the Assessing Officer assumes jurisdiction for block assessment under Section 153A for six assessment years. While all pending assessments/reassessments for those years stand abated and can be reassessed for total income including all available material, in respect of completed/unabated assessments, the Assessing Officer can make an addition or reassessment only if incriminating material related to that issue has been found and unearthed during the search. In the absence of any incriminating material being unearthed during the search, the Assessing Officer cannot assess or reassess taking into consideration other material in respect of completed/unabated assessments. However, the completed/unabated assessments can be reopened by the Assessing Officer in exercise of powers under Sections 147/148 of the Act, subject to fulfillment of the conditions as envisaged under those sections.
On this section: Issuance of notice for reassessment under Section 147
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Dayawanti through Smt. Sunita Gupta (legal Heir) vs Commissioner of Income Tax
Court's Decision & Legal Precedent
In case of search under Section 132 or requisition under Section 132A of the Income Tax Act, 1961: (i) All pending assessments/reassessments shall abate and merge into assessment under Section 153A, permitting Assessing Officer to assess 'total income' for the entire six assessment years; (ii) In respect of abated/pending assessments, the AO can assess total income incorporating both disclosed income and undisclosed income found during search or available from other sources; (iii) However, in respect of completed/unabated assessments where no assessment was pending at the date of search initiation, the AO can only assess or reassess by reopening such assessment when incriminating material is found relating to that specific assessment year; (iv) Where no incriminating material whatsoever is found during the search for a particular assessment year, the AO cannot assess or reassess a completed assessment for that year under Section 153A, and the completed assessment remains final and protected; (v) In such cases, the Revenue's only remedy is to resort to reassessment under Sections 147/148, subject to fulfillment of the conditions stated therein, and these powers are expressly saved; (vi) The assessment under Section 153A is fundamentally linked to the search or requisition under Sections 132/132A, and its object is to bring to tax undisclosed income detected through such search - foundation for Section 153A assessment is the existence of incriminating material.
On this section: Notice for reassessment under Section 147 - conditions and timing requirements for issuance of notice for reopening of assessment
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Pr Commissioner of Income Tax (c) 1 vs Rehab Housing PVT LTD
Court's Decision & Legal Precedent
In case of search under Section 132 or requisition under Section 132A of the Income Tax Act, 1961, the Assessing Officer assumes jurisdiction for block assessment under Section 153A. All pending assessments/reassessments shall stand abated. In case any incriminating material is found/unearthed during the search, even in case of unabated/completed assessments, the Assessing Officer would assume jurisdiction to assess or reassess the total income taking into consideration the incriminating material unearthed during the search and other material available with the Assessing Officer including income declared in returns. However, in case no incriminating material is unearthed during the search, the Assessing Officer cannot assess or reassess taking into consideration other material in respect of completed assessments/unabated assessments. Therefore, in respect of completed/unabated assessments, no addition can be made by the Assessing Officer in absence of any incriminating material found during the course of search under Section 132 or requisition under Section 132A of the Act, 1961. The completed/unabated assessments can be re-opened by the Assessing Officer in exercise of powers under Sections 147/148 of the Act, subject to fulfilment of the conditions as envisaged/mentioned under Sections 147/148.
On this section: Notice for reassessment - cited in connection with powers available to Revenue for completed assessments
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Pr Commissioner of Income Tax (c) 1 vs Rehab Housing PVT LTD through Its Md
Court's Decision & Legal Precedent
In Case Of Search Under Section 132 Or Requisition Under Section 132A, The Assessing Officer Assumes Jurisdiction For Block Assessment Under Section 153A For Six Assessment Years. While All Pending Assessments/Reassessments Shall Stand Abated, In Case Of Completed/Unabated Assessments, The Assessing Officer Can Only Assess Or Reassess The Total Income Taking Into Consideration Incriminating Material Unearthed During The Search And Other Material Available. In Case No Incriminating Material Is Unearthed During The Search, The Assessing Officer Cannot Assess Or Reassess Taking Into Consideration Other Material In Respect Of Completed/Unabated Assessments. The Assessment Under Section 153A Is Inextricably Linked With The Search And Requisition Under Sections 132 And 132A, And The Object Is To Bring Under Tax The Undisclosed Income Which Is Found During The Course Of Search Or Pursuant To Search Or Requisition. Only In Cases Where Undisclosed Income Is Found Based On Incriminating Material, The Assessing Officer Assumes Jurisdiction To Assess Or Reassess Total Income For The Entire Six-Year Block Assessment Period Even In Case Of Completed/Unabated Assessments.
On this section: Procedural Provision Enabling Reassessment Under Section 147; Referenced As Alternative Remedy Along With Section 147
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Principal Commissioner of Income Tax(central) 1 vs Nra Iron and Steel Pvt. Ltd. through Director
Court's Decision & Legal Precedent
In a case where Share Capital/Premium is credited in the books of account of an Assessee company, the onus of proof is on the assessee to establish by cogent and reliable evidence: (1) the identity of the investor companies; (2) the credit-worthiness of the investors; and (3) the genuineness of the transaction, to the satisfaction of the Assessing Officer. The Assessing Officer is duty bound to conduct independent enquiry to verify these elements. If enquiries and investigations reveal that the identity of the creditors is dubious or doubtful, or they lack credit-worthiness, then the genuineness of the transaction would not be established, and the assessee would not have discharged the primary onus under Section 68 of the Income Tax Act. In such cases, the Assessing Officer is justified in adding the amount back to the assessee's income. Merely proving that money was received through banking channels or producing income tax return acknowledgments is not sufficient to discharge this onus if the substance of the transaction is contradicted by independent investigation revealing non-existent entities or lack of financial capacity.
On this section: Section 148 provides for reopening of assessment. The Assessing Officer issued a notice under Section 148 on 13.04.2012 to reopen the assessment for Assessment Year 2009-10, which was within the prescribed time limit.
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Commnr. of Income Tax, Delhi vs Kelvinator of India LTD
Court's Decision & Legal Precedent
After 1st April 1989, the Assessing Officer has the power to reopen an assessment under Section 147 of the Income Tax Act, 1961, provided there is 'tangible material' to come to the conclusion that income has escaped assessment. The concept of 'change of opinion' cannot be the basis for reopening; instead, the reasons for reopening must have a live link with the formation of the belief that income has escaped assessment. The expression 'reason to believe' must be given a schematic interpretation to prevent arbitrary exercise of power and to maintain the distinction between the power to review (which the Assessing Officer does not possess) and the power to reassess (which he does possess).
On this section: These sections provide the procedural framework for reassessment proceedings and are subject to the conditions laid down in Section 147.
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K C Builders vs The Asstt Commnr of Income Tax
Court's Decision & Legal Precedent
When the Income Tax Appellate Tribunal, which is the final court on facts, finds that there is no concealment of income and cancels penalties levied under Section 271(1)(c) of the Income Tax Act, the criminal prosecution under Section 276C of the Act must be automatically quashed. The finding of the Appellate Tribunal is conclusive and binding on the criminal court. Since the basis for criminal prosecution (concealment of income) has been negated by the Tribunal's final order, no offence survives under the Income Tax Act, and the criminal proceedings cannot be sustained. The Assessing Officer has no alternative except to cancel the penalty following the Tribunal's order, and the criminal court cannot proceed with prosecution after such cancellation.
On this section: Deals with issue of notice where income has escaped assessment; cited in context of notice issued to appellants
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Niharika Konidela vs The Commissioner of Income Tax
Court's Decision & Legal Precedent
When a challenge is raised regarding the competency of a jurisdictional officer versus a faceless officer in tax assessments, the court may grant interim protection until the statutory compliance is verified.
On this section: Notice for reassessment of income escaping assessment.
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Asst. Commr. of Income Tax, Madras vs Thanthi Trust
Court's Decision & Legal Precedent
A charitable trust carrying on a business is entitled to income tax exemption under Section 11 of the Income Tax Act, 1961 if: (1) Under Section 13(1)(bb) (1977-1984): The business is carried on in the course of actual carrying out of a primary purpose, meaning the business directly accomplishes the charitable purpose (relief of poor, education, or medical relief), not merely funds it. (2) Under Section 11(4A) as originally enacted (1984-1992): The business falls within specified categories (public religious trust with printing/publishing business, or institution with work mainly by beneficiaries). (3) Under substituted Section 11(4A) (1992 onwards): The business is incidental to attainment of the trust's objectives and separate books of account are maintained. The distinction between business held under trust and business carried on by trust has no consequence for applicability of these provisions.
On this section: Provision for reopening assessments; Income Tax Officer issued notices under this section to reopen assessments for various assessment years
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Shridhar B. Shukla v. Assistant Commissioner of Income Tax
Court's Decision & Legal Precedent
A s.148 notice beyond four years from the end of the assessment year is without jurisdiction where there is no allegation of failure to fully and truly disclose material facts and the reopening is a mere change of opinion on already-examined share-sale capital-gains material.
On this section: The entire writ quashes the s.148 notice and the order rejecting objections; jurisdictional failure-to-disclose gate for post-4-year reopenings is decisive.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Questions about Section 148
What have the courts held on Section 148 of the Income-tax Act?
Union of India v. Ashish Agarwal (04 May 2022) is the leading judgment on this section among those set out below: Unamended s.148 notices are saved by converting them into the s.148A pathway rather than wholesale quash — direct construction of the reassessment transition. Another 15 judgments on this section are set out below, 14 of them from the Supreme Court. They run from 2001 to 2025.
How do I find court cases under Section 148 of the Income-tax Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Income Tax Act 148, section 148 Income Tax Act, section 148 of the Income-tax Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 16 reported judgments on this section are set out on this page, beginning with Union of India v. Ashish Agarwal (04 May 2022).
What should I read with Section 148 of the Income-tax Act, and has it changed?
Its own text turns on section 90 (Agreement with foreign countries or specified territories), section 133A (Power of survey), section 135A (Faceless collection of information), section 139 (Return of income), and on 2 further provisions, so none of them can safely be read on its own. 39 other provisions in this corpus refer back to it. For anything done on or after 1 April 2026 the provision to read is Income-tax Act, 2025, section 280 (Issue of notice where income has escaped assessment), which replaced it; conduct before that date is still charged, tried and appealed under this section.
When did Section 148 of the Income-tax Act come into force?
Section 148 of the Income-tax Act, cited as Income Tax Act 148, came into force on 01 Apr 1962, having been enacted on 13 Sep 1961. It is no longer in force.
Other sections of this Act
- 10. Incomes not included in total income30885 words
- 2. Definitions11419 words
- 80HHF. Deduction in respect of profits and gains from export or transfer of film software, etc7148 words
- 80-IB. Deduction in respect of profits and gains from certain industrial undertakings other than infrastructure development undertakings5474 words
- 155. Other amendments5451 words
- 139. Return of income5400 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Recovered from the consolidated text published by the Income Tax Department, as amended by the Finance Act, 2026. India Code holds no record of this Act in any form. This page is not a substitute for legal advice.