Section 148A(d) of the Income Tax Act
Income-tax Act, 2025: s.281
Section 148A(d) 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(d) is Sir Kikabhai Premchand v. CIT (24 ITR 506), cited in 156 of the 544 judgments on BharatTax that turn on this section.
Leading authorities on Section 148A(d)
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.
Approval granted by the Principal Chief Commissioner or Principal Commissioner under Section 151 for reassessment proceedings under Section 148 must reflect due application of mind. A mere endorsement of "approved" without reasons or reference to material is insufficient, as the approval serves as a safeguard and must be meaningful, not ritualistic or formal.
Mere cash deposits in a bank account, without the Assessing Officer's independent application of mind on reasons to believe, are not sufficient grounds to invoke jurisdiction under Section 147 for reassessment proceedings.
Reassessment notices under Section 148A, issued in the context of faceless assessment proceedings, must be issued by the designated Faceless Assessing Officer and not by a Jurisdictional Assessing Officer.
The issuance of a notice under section 148A, including the order under section 148A(d), is a mandatory procedural step before reassessment proceedings can be initiated under section 147/148. Failure to comply with this requirement renders the subsequent reassessment proceedings invalid.
Notices under section 148 of the Income-tax Act, for international taxation charges, must be issued in a faceless manner, applying the provisions of section 144B and section 151A, in accordance with the notified scheme.
Where the National Faceless Assessment Centre (NFAC) and the Joint Assessing Officer (JAO) have concurrent jurisdiction, a notice issued by the JAO under Section 148 of the Income Tax Act is valid, provided no prejudice is caused to the assessee.
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.