Question ID : 41018

NOTICE U/S 148

A PVT LTD CO IS IN RECEIPT OF NOTICE U/S 148 IN APRIL 21 FOR THE ASSTT YEAR 13-14. DURING THAT PERIOD THE COMPANY HAS ISSUED SHARES WORTH RS 50 L BY CONVERTING UNSECURED LOAN OF DIRECTORS IN SHARE CAPITAL ACCOUNT. THE FACTS WAS ALSO EXPLAINED TO THE JURISIDICATIONAL AO SOME 2 YEARS BACK, WHEN A ENQUIREY WAS MADE FOR THE SAME. AND ALL THE FACTS WERE SUBMITTED. BUT NOW THE NOTICE HAS BEEN SERVED. PLEASE ANY ONE SUGGEST THE REAOSN OF 148 AS COMPANY HAS NOT RECEIVED ANY REASON OF REOPENNG

Answer ID : 81040

The 148 notice may or may not be related to the conversion as you said. However,the proper course of action for the notice is to file the return and seek from the Assessing Officer the reasons for issuing the notice.

Answer ID : 81043

According to the provisions of section 148 of the Income Tax Act, 196 before making assessment, reassessment or recomputation under section 147, the Assessing Officer has to serve on the assessee a notice requiring him to furnish within such period, as may be specified in the notice, a return of his income where the income has escaped assessment provided that the Assessing Officer shall, before issuing any notice under this section, record his reasons for doing so. 2. The reasons recorded by the Assessing Officer should by satisfied by the Principal Chief Commissioner or the Principal Commissioner or the Chief Commissioner or the Joint Commissioner the Commissioner, depending on the case, about the fitness of the case for issuing notice under section 148 of the Income Tax Act, 1961. If the reasons for issuance of the 148 is not mentioned in notice then the notice may be invalid

Answer ID : 81055

Dear Mr. Pradeep You must put your formal request to the Assessing Officer after submitting copy of income tax return to provide copy of reasons to believe for re-opening under section 148 and they are bound to provide the same.

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