Section 148A of the Income Tax Act

Income-tax Act, 2025: s.281

Section 148A of the Income-tax Act, 1961 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 is Union of India v. Rajeev Bansal (469 ITR 46), cited in 713 of the 3,543 judgments on BharatTax that turn on this section.

Leading authorities on Section 148A

Union of India v. Rajeev Bansal
469 ITR 46 · 2024 · Supreme Court
713
citing judgments

The legal fiction created by the Ashish Agarwal judgment stops the limitation clock for Section 148 notices from the date of the deemed notice. Orders issued without proper jurisdiction, or those inconsistent with statutory prescriptions, are a nullity, and there can be no waiver of such fundamental jurisdictional requirements.

CIT v. Walfort Share & Stock Brokers (P.) Ltd.
326 ITR 1 · 2010 · Supreme Court
543
citing judgments

For attracting Section 14A disallowance, there must be a proximate cause relating the expenditure to actual tax-exempt income, and such disallowance is not automatic but requires positive material. Additionally, Section 94(7) on dividend stripping only ignores losses to the extent of dividend received for assessment years post-April 1, 2002, allowing the remaining loss.

Union of India v. Ashish Agarwal
444 ITR 1 · 2022 · Supreme Court
524
citing judgments

Notices issued under the unamended Section 148 of the Income-tax Act between April 1, 2021, and May 4, 2022, must be treated as notices issued under the new Section 148A(b) of the amended law. This requires the Assessing Officer to follow the procedure prescribed under the amended reassessment provisions, including issuing an order under Section 148A(d) before a fresh notice under Section 148.

Kunhayammed v. State of Kerala
245 ITR 360 · 2000 · Supreme Court
361
citing judgments

An order refusing special leave to appeal to the Supreme Court, whether speaking or non-speaking, does not attract the doctrine of merger, meaning the order under challenge is not substituted.

Hexaware Technologies Ltd. v. ACIT
464 ITR 430 · 2024 · High Court
288
citing judgments
Kankanala Ravindra Reddy v. ITO
156 Taxmann.com 178 · 2023 · High Court
213
citing judgments

A notice issued under section 148 of the Income Tax Act is invalid if the Income Tax Department fails to follow the prescribed procedures, including obtaining the necessary approvals under section 151 or adhering to the faceless assessment scheme mandates under section 151A.

Varghese v. ITO, Ernakulum
4 SCC 173 · 1981 · Reported
164
citing judgments

Circulars issued by the Central Board of Direct Taxes (CBDT) under Section 119 of the Income Tax Act are legally binding on the revenue authorities in their administration and implementation. This binding character applies even if the circulars depart from the correct interpretation of the law and cannot be ignored to the prejudice of the assessee.

Gramaphone Co. of India Ltd. v. Birendra Bahadur Pandey
132 Taxmann 373 · 2003 · Supreme Court
146
citing judgments
(P.) Ltd. v. ITO
221 ITR 538 · 1996 · Supreme Court
125
citing judgments

The sanction of a specified authority under Section 151 is a mandatory procedural check before issuing a notice under Section 148. This procedural safeguard aims to prevent mechanical reopening of assessments and harassment of the assessee.

Shanmugavel Nadar v. State of Tamil Nadu
263 ITR 658 · 2003 · Supreme Court
122
citing judgments

The doctrine of merger applies when appellate jurisdiction is invoked, causing the operative part of a lower court's order or decree to merge into the superior court's order, whether it reverses, modifies, or affirms the original decision. The application of this doctrine depends on the nature of the appellate or revisional order, the scope of statutory provisions, and the subject matter challenged.

Judgments on Section 148A

Deputy Commissioner of Income Tax, Delhi vs. Suncity Infrastructures Private Limited, Delhi

In the result, the appeal of the Revenue is dismissed

ITA 4831/DEL/2024[2015-16]Status: DisposedITAT Delhi26 Sept 2025AY 2015-16

Bench: Shri Anubhav Sharma & Shri Manish Agarwaldy. Cit, Suncity Infrastructures Pvt. Ltd., Delhi. Lgf-10, Vasant Square Mall, Vs. Vasant Kunj, New Delhi-110070. Pan-Aaics7928N (Appellant) (Respondent) Assessee By Shri Ved Jain, Advocate & Shri Pawan Garg, Ca Department By Shri Mahesh Kumar, Cit-Dr Date Of Hearing 01/07/2025 Date Of Pronouncement 26/09/2025 O R D E R Per Manish Agarwal, Am: This Appeal Is Filed By The Revenue Against The Order Of Learned Commissioner Of Income Tax (Appeals), National Faceless Appeal Centre (Nfac), Delhi Dated 20.08.2024 In Appeal No. Nfac/2014-15/10115325 Arising Out Of The Order Passed U/S 147 R.W.S.144B Dated 29.03.2021 For Assessment Year 2015-16. 2. Brief Facts Of The Case Are That The Assessee Is A Company Engaged In The Business Of Real State. The Return Of Income Of The Year Under Appeal Was Filed On 30.09.2015 Declaring Total Income Of Rs.2,93,54,930/- & The Same Was Assessee U/S 143(3) Of The Act Vide Order Dated 24.11.2017 Wherein The Income Declared Was Accepted By The Ao. Thereafter, Based On The Information That The Assessee Has Dcit Vs. Suncity Infrastructures Pvt. Ltd. Allotted Preference Shares To One Shri Tarun Agarwal, At 16546/- Per Which Were Not Commensurate With The Financials Of The Company & After Obtaining The Approval Form The Competent Authority Notice Was Issued U/S 148 Dated 31.03.2021 Which Was Served Upon The Assessee On 01.04.2021. Thereafter, Reassessment Order Was Passed U/S 147 R.W.S. 144B Of The Act Wherein Addition Of Rs.11,00,00,000/- Was Made On Account Of Share Premium Treated As Unexplained U/S 68 Of The Act R.W.S 115Bbe Of The Act.

Section 143(3)Section 147Section 148Section 148ASection 68

Sangeet Gupta, Satna vs. Income Tax Officer Ward-1, Satna

In the result, the appeal is allowed for statistical purposes

ITA 83/JAB/2025[2018-19]Status: DisposedITAT Jabalpur24 Sept 2025AY 2018-19

Bench: Sh. Kul Bharat & Sh. Nikhil Choudharya.Y. 2018-19 Sangeeta Gupta, Vs. Income Tax Officer, Ludhati, Itama, Maihar, Satna Ward-1, Satna Pan:Bdipg5378M (Appellant) (Respondent) Assessee By: Sh. Dhiraj Ghai, Ca Revenue By: Sh. N.M. Prasad, Sr. Dr Date Of Hearing: 21.08.2025 Date Of Pronouncement: 24.09.2025 O R D E R Per Nikhil Choudhary, A.M. This Is An Appeal Filed By The Assessee Against The Order Of The Ld. Cit(A), Nfac Under Section 250 Of The Income Tax Act, 1961 On 18.02.2025 Dismissing The Appeal Of The Assessee In Limine. The Grounds Of Appeal Are As Under:- “1. On The Facts & Circumstance Of The Case, The Ld. Cit(A) Erred In Not Considering The Case As Bad In Law, As Has Been Initiated By Jao Instead Of Faceless. 2. On The Facts & Circumstances Of The Case, Case, The Id. Cit (A) Erred In Not Considering The Case As Bad In Law On Account Of Not Giving Sufficient Time Of 30 Days To Assessee To Reply The Notice Under Section 148A(B). 3. On The Fact & Circumstance Of The Case, The Id. Cit (A) Has Erred In Law As Well As On The Fact Of The Case In Dismissing The Appeal In Liming Without Condoning The Delay Even When There Exist Reason & Sufficient Cause Behind The Delay So Caused Was Beyond The Control Of The Appellant. 4. The Id. Cit (A) Erred In Law As Well As On The Fact Of The Case In Confirming The Addition Of 21,23,97,680/- Credited In The Bank Account Of The Assessee In Cash Form Without Considering The Fact That Assessee Duly Uploaded The Audit Report On E-Portal, Confirming The Source Of Cash. Further Id. Cit (A) Also Erred In Not Considering The Reply Filed In The Appeal Proceeding, As Well As In The Assessment Proceeding By Assessee, To Dismiss The Appeal Being Filed Beyond Allowable Time Having Sufficient Cause.

For Appellant: Sh. Dhiraj Ghai, CAFor Respondent: Sh. N.M. Prasad, Sr. DR
Section 115Section 142(1)Section 144Section 148Section 148ASection 234BSection 250Section 271ASection 69A