Before making the assessment/reassessment or re-computation under Section 147, the assessing officer shall serve on the assessee a notice requiring him to furnish a return of his income or income of any person in respect of which he is assessable during the previous year corresponding to the relevant assessment year [even though it has already been furnished earlier under Section 139 or 142(1)] within such period as may be specified in the notice.
However, before issuing such notice, the assessing officer is required to record his reasons for doing so.
For making assessment or reassessment under Section 147, a notice under Section 148 is required to be issued by the Assessing Officer for each assessment year for which the income has escaped assessment.
Provisions of Section 148 in case ITR not furnished
If the income tax return is not furnished within the time allowed in the notice issued under Section 148, the assessee shall be liable to pay interest under Section 234(3), for late filing of return or for not filing the return of income, if the income has already been determined under Section 143(1) or if the assessment already has been done under Section 143(3) or 144 or 147.
On the other hand, if the assessee had not furnished the return of income in respect of any assessment year and no assessment of such assessment year was done under Section 144, then interest for late filing of return in response to a notice under Section 148, shall be leviable under Section 234(1) instead of Section 234(3).
Illustration: Assessing Officer has issued a notice to R under Section 148 to assess the income of assessment year 2010-11 which according to him has escaped assessment. During the course of such assessment proceedings, he discovers that:-
- There is some other income relating to the same assessment year which has also escaped assessment.
- There is some income related to assessment year 2009-10 which has also escaped assessment.
What action should be taken by the Assessing Officer in this regard?
- There is no need to give another notice under Section 148 and he can assess/re-assess such income alongwith the income for which the proceedings are going on.
- The assessing officer will have to issue a separate notice under Section 148 in this case.