Section 148A(b) of the Income Tax Act
Income-tax Act, 2025: s.281
Section 148A(b) falls under section 148A of the Income-tax Act, 1961, which corresponds to section 281 (Procedure before issuance of notice under section 280) of the Income-tax Act, 2025.
Read section 281 of the 2025 Act
Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.
The decision most relied on for Section 148A(b) is Sir Kikabhai Premchand v. CIT (24 ITR 506), cited in 156 of the 524 judgments on BharatTax that turn on this section.
Leading authorities on Section 148A(b)
One cannot make a taxable profit or loss from transactions with oneself, as profit only arises from dealings with external third parties, even when transferring assets between different accounts or divisions of the same entity.
For capital gains exemption under Sections 54 and 54F of the Income Tax Act (prior to the 2015 amendment), the expression "a residential house" includes multiple residential units and should not be construed in the singular, by applying Section 13 of the General Clauses Act.
Reassessment notices issued after April 1, 2021, for Assessment Year 2015-16 are time-barred. The relaxation provided by the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020, does not extend the period of limitation for such notices.
Legal fictions are to be construed to enable the person for whose benefit they are created to obtain all flowing consequences. This principle applies when determining procedures for reassessment under Section 148, including decisions under Section 149A(d) and issuing notices within the surviving time limit.
Disallowance under Section 40A(3) can be dispensed with if the assessee proves business expediency for cash payment and verifies the genuineness of the transaction, even if it doesn't fall under Rule 6DD.
Once an addition made based on original reasons recorded for reopening is deleted, other additions not part of those original reasons cannot be sustained.
A statutory notice issued in the name of a non-existent entity renders the entire assessment a nullity in the eyes of law.
High Courts have allowed writ petitions in favour of assessees concerning issues of jurisdiction.
