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

Rajani Sahu, Gwalior vs. Income-Tax Officer, Ashok Nagar, Gwalior

The appeal stand allowed in terms of our above order

ITA 420/AGR/2024[2015-2016]Status: DisposedITAT Agra22 Apr 2025AY 2015-2016

Bench: Hon’Ble Shri Satbeer Singh Godara, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am आयकरअपील सं. / Ita No. 420/Agr/2024 (िनधा"रणवष" / Assessment Year:2015-16) Smt. Rajani Sahu Income-Tax Officer, बनाम/ Karera, Near Kali Mai Mandir, Ashok Nagar, Gwalior. Shivpuri Road Vs. Karera, Shivpuri (Mp). "थायीलेखासं./जीआइआरसं./Pan/Gir No. Ehpps-3090-N (अपीलाथ"/Appellant) : (" थ" / Respondent) अपीलाथ"कीओरसे/ Appellant By : Sh. Deependra Mohan, Ca - Ld. Ar " थ"कीओरसे/Respondent By : Sh. Shailender Shrivastava – Ld. Sr. Dr सुनवाईकीतारीख/Date Of Hearing : 21-02-2025 घोषणाकीतारीख /Date Of Pronouncement : 22.04.2025 आदेश / O R D E R Manoj Kumar Aggarwal () 1. Aforesaid Appeal By Assessee For Assessment Year (Ay) 2015-16 Arises Out Of An Order Passed By Learned Commissioner Of Income Tax (Appeals), Nfac, Delhi [Cit(A)] On 21-05-2024 In The Matter Of An Assessment Framed By Ld. Assessing Officer [Ao] U/S. 147 R.W.S. 144 Of The Act On 27-04-2023. In The Assessment Order, Ld. Ao Made Addition Of Deemed Income U/S 56(2)(Vii)(B) For Rs.48.90 Lacs. The Ld. Cit(A) Confirmed The Same Against Which The Assessee Is In Further Appeal Before Us. 2. The Ld. Ar, At The Outset, Raised A Pertinent Legal Issue Assailing Legality Of Reassessment Proceedings. It Has Been Stated That This Year Is Covered By The Decision Of Hon’Ble Delhi High Court In The Case Of Ibibo

For Appellant: Sh. Deependra Mohan, CA - Ld. ARFor Respondent: Sh. Shailender Shrivastava – Ld. Sr. DR
Section 147Section 148Section 148ASection 149Section 149(1)(b)Section 3Section 56(2)(vii)

ACIT, Circlle-34, Kolkata vs. Subhas Kumar Kedia, Kolkata

In the result, appeal of the revenue is dismissed

ITA 1677/KOL/2024[2016-17]Status: DisposedITAT Kolkata17 Apr 2025AY 2016-17

Bench: Shri Rajesh Kumar & Shri Pradip Kumar Choubeyआयकर अपील सं/Ita No.1677/Kol/2024 (नििाारण वर्ा / Assessment Year : 2016-2017) Acit, Circle-34, Kolkata Vs Subhas Kumar Kedia, 41, N.S.Road, Kolkata Pan No. :Afnpk 9669 M (अपीलार्थी /Appellant) (प्रत्यर्थी / Respondent) .. नििााररती की ओर से /Assessee By : Ms. Shreya Loyalka, Ar राजस्व की ओर से /Revenue By : Shri P.N.Barnwal, Cit-Dr सुनवाई की तारीख / Date Of Hearing : 21/01/2025 घोषणा की तारीख/Date Of Pronouncement : 17/04/2025 आदेश / O R D E R Per Rajesh Kumar, Am : This Is An Appeal Filed By The Revenue Against The Order Dated 05.06.2024, Passed By The Ld. Cit(A), National Faceless Appeal Centre (Nfac), Delhi, For The Assessment Year 2016-2017, On The Following Grounds Of Appeal :- I) That On The Facts & In The Circumstances Of The Case, The Ld. Cit(Appeals), Nfac, Delhi, Erred In Quashing The Order U/S.148A(D) & All Subsequent Proceedings. Ii) That On The Facts & Circumstances Of The Case, The Ld. Cit(Appeals), Nfac, Delhi, Failed To Acknowledge The Fact That The Assesse Had Not Expressed Any Grievance Against The Validity Of Order U/S 148A(D) By Moving Any Writ Petition Which Should Have Been Done In Case Of Any Grievance After Getting The Sald Order U/S.148A(D). Iii) That On The Facts & Circumstances Of The Case, The Ld. Cit(Appeals), Nfac, Delhi, Erred In Quashing The Order When The Ld. Cit(A) Has No Jurisdiction To Deal With The Question Whether The 148A(D) Order Was Passed Validly Or Properly As An Order U/S.148A(D) Is Not An Appealable Order Before Ld. Cit(A) As Per Section 246A.

For Appellant: Ms. Shreya Loyalka, ARFor Respondent: Shri P.N.Barnwal, CIT-DR
Section 148Section 148ASection 149Section 151Section 246ASection 3Section 69A

Income Tax Officer -42(1)(3), Mumbai, Kautilya Bhavan, Bkc, Bandra vs. Krishna Deep Builders, Mumbai

In the result, the appeal filed by the assessee is allowed and the appeal filed by the revenue is dismissed

ITA 6240/MUM/2024[2017-18]Status: DisposedITAT Mumbai17 Apr 2025AY 2017-18

Bench: Ms. Kavitha Rajagopal, Jm & Smt. Renu Jauhri, Am Krishna Deep Builders Ito Ward – 42(1)(3) B/203, 2Nd Floor, Goyal Shopping Arcade, Room No. 715, Kautilya Bhavan, C- Opp. Railway Station, S. V. Road, Vs. 41 To C-43, G Block, Bandra Kurla Borivali, West, Mumbai – 400092. Complex, Bandra (East), Mumbai – 400051. Pan/Gir No. Aaafk375Q (Assessee) : (Respondent) Ito Ward – 42(1)(3) Krishna Deep Builders Room No. 715, Kautilya Bhavan, C-41 To B/203, 2Nd Floor, Goyal Shopping C-43, G Block, Bandra Kurla Complex, Vs. Arcade, Opp. Railway Station, S. V. Bandra (East), Mumbai – 400051. Road, Borivali, West, Mumbai – 400092. Pan/Gir No. Aaafk375Q (Assessee) : (Respondent) : Shri. Ajay Singh Assessee By Respondent By : Shri. Hemanshu Joshi (Sr. Dr) Date Of Hearing : 20.01.2025 Date Of Pronouncement : 17.04.2025 O R D E R Per Kavitha Rajagopal, J M: These Are Cross Appeals Filed By The Revenue & The Assessee, Challenging The Order Of The Learned Commissioner Of Income Tax (Appeals) Delhi (‘Ld. Cit(A)’ For Short), National Faceless Appeal Centre (‘Nfac’ For Short) Passed U/S.250 Of The

For Respondent: Shri. Hemanshu Joshi (Sr. DR)
Section 144Section 147Section 148Section 148ASection 250Section 56(2)Section 56(2)(vi)Section 56(2)(vii)Section 69Section 69A

Krishna Deep Builders, Mumbai vs. Income Tax Officer Ward-42(1)(3), Mumbai

In the result, the appeal filed by the assessee is allowed and the appeal filed by the revenue is dismissed

ITA 5768/MUM/2024[2017-18]Status: DisposedITAT Mumbai17 Apr 2025AY 2017-18

Bench: Ms. Kavitha Rajagopal, Jm & Smt. Renu Jauhri, Am Krishna Deep Builders Ito Ward – 42(1)(3) B/203, 2Nd Floor, Goyal Shopping Arcade, Room No. 715, Kautilya Bhavan, C- Opp. Railway Station, S. V. Road, Vs. 41 To C-43, G Block, Bandra Kurla Borivali, West, Mumbai – 400092. Complex, Bandra (East), Mumbai – 400051. Pan/Gir No. Aaafk375Q (Assessee) : (Respondent) Ito Ward – 42(1)(3) Krishna Deep Builders Room No. 715, Kautilya Bhavan, C-41 To B/203, 2Nd Floor, Goyal Shopping C-43, G Block, Bandra Kurla Complex, Vs. Arcade, Opp. Railway Station, S. V. Bandra (East), Mumbai – 400051. Road, Borivali, West, Mumbai – 400092. Pan/Gir No. Aaafk375Q (Assessee) : (Respondent) : Shri. Ajay Singh Assessee By Respondent By : Shri. Hemanshu Joshi (Sr. Dr) Date Of Hearing : 20.01.2025 Date Of Pronouncement : 17.04.2025 O R D E R Per Kavitha Rajagopal, J M: These Are Cross Appeals Filed By The Revenue & The Assessee, Challenging The Order Of The Learned Commissioner Of Income Tax (Appeals) Delhi (‘Ld. Cit(A)’ For Short), National Faceless Appeal Centre (‘Nfac’ For Short) Passed U/S.250 Of The

For Respondent: Shri. Hemanshu Joshi (Sr. DR)
Section 144Section 147Section 148Section 148ASection 250Section 56(2)Section 56(2)(vi)Section 56(2)(vii)Section 69Section 69A