Section 148: Income Escaping Assessment

Purpose: To ensure accurate reporting of all income sources, preventing intentional or unintentional income concealment. Initiation: Assessing Officer (AO) issues a notice under Section 148 if doubts arise regarding income disclosure in filed returns.

Conditions for Issuance: Valid reason supported by substantial evidence. Written reasons provided before notice issuance. New information or previously undisclosed relevant information surfaces. Time Limits for Notice: Within 4 years from the end of relevant assessment year. Up to 10 years under specific conditions. Up to 16 years for assets outside India.

Issuing Authority: AO above Assistant Commissioner or Deputy Commissioner, with Joint Commissioner's approval and recorded justifications. Response to Notice: Review reasons provided by AO. Agree: File requested return or provide requested documents. Dispute: Challenge validity before AO or higher authorities.

Consequences of Non-Response: AO conducts assessment based on available information. Taxpayers can appeal to Commissioner of Income Tax (Appeals) or Income Tax Appellate Tribunal (ITAT) if disagreeing with AO's assessment.