Section149 (2)

62-68
[Time limit for notices under sections 148 and 148A.

149. if three years and three months have elapsed from the end of the relevant assessment
(1) year, unless the case falls under clause (b);
No
noti
ce
und
er
secti
on
148(
a)
(b) if three years and three months, but not more than five years and three months, have
elapsed from the end of the relevant assessment year unless the Assessing Officer
has in his possession books of account or other documents or evidence related to any
asset or expenditure or transaction or entries which show that the income
chargeable to tax, which has escaped assessment, amounts to or is likely to amount
to fifty lakh rupees or more.
(2) No notice to show cause under section 148A shall be issued for the relevant assessment year,—
(a) if three years have elapsed from the end of the relevant assessment year, unless the
case falls under clause (b);
(b) if three years, but not more than five years, have elapsed from the end of the relevant
assessment year unless the income chargeable to tax which has escaped assessment,
as per the information with the Assessing Officer, amounts to or is likely to amount
to fifty lakh rupees or more. ]
62-68. Substituted by the Finance (No. 2) Act, 2024, w.e.f. 1-9-2024. Prior to its substitution,
section 149, as amended by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-
1989, Direct Tax Laws (Second Amendment) Act, 1989, w.e.f. 1-4-1989, Finance Act,
2001, w.e.f. 1-6-2001, Finance Act, 2012, w.e.f. 1-7-2012, Finance Act, 2021, w.e.f. 1-4-
2021, Finance Act, 2022, w.e.f. 1-4-2022/w.r.e.f. 1-4-2021 and Finance Act, 2023, w.e.f.
1-4-2023, read as under:
'149. Time limit for notice.— (1) No notice under section 148 shall be issued for the relevant
assessment year,—
(a) if three years have elapsed from the end of the relevant assessment year, unless the
case falls under clause (b);
(b) if three years, but not more than ten years, have elapsed from the end of the relevant
assessment year unless the Assessing Officer has in his possession books of account
or other documents or evidence which reveal that the income chargeable to tax,
represented in the form of—
(i) an asset;
(ii) expenditure in respect of a transaction or in relation to an event or occasion; or
(iii) an entry or entries in the books of account,
which has escaped assessment amounts to or is likely to amount to fifty lakh rupees
or more:
Provided that no notice under section 148 shall be issued at any time in a case for the relevant
assessment year beginning on or before 1st day of April, 2021, if a notice under section 148 or
section 153A or section 153C could not have been issued at that time on account of being beyond
the time limit specified under the provisions of clause (b) of sub-section (1) of this section or
section 153A or section 153C, as the case may be, as they stood immediately before the
commencement of the Finance Act, 2021:
Provided further that the provisions of this sub-section shall not apply in a case, where a notice
under section 153A, or section 153C read with section 153A, is required to be issued in relation to a
search initiated under section 132 or books of account, other documents or any assets requisitioned
under section 132A, on or before the 31st day of March, 2021:
Provided also that for cases referred to in clauses (i), (iii) and (iv) of Explanation 2 to section 148,
where,—
(a) a search is initiated under section 132; or
(b) a search under section 132 for which the last of authorisations is executed; or
(c) requisition is made under section 132A,
after the 15th day of March of any financial year and the period for issue of notice under section
148 expires on the 31st day of March of such financial year, a period of fifteen days shall be
excluded for the purpose of computing the period of limitation as per this section and the notice
issued under section 148 in such case shall be deemed to have been issued on the 31st day of March
of such financial year:
Provided also that where the information as referred to in Explanation 1 to section 148 emanates
from a statement recorded or documents impounded under section 131 or section 133A, as the case
may be, on or before the 31st day of March of a financial year, in consequence of,—
(a) a search under section 132 which is initiated; or
(b) a search under section 132 for which the last of authorisations is executed; or
(c) a requisition made under section 132A,
after the 15th day of March of such financial year, a period of fifteen days shall be excluded for the
purpose of computing the period of limitation as per this section and the notice issued under clause
(b) of section 148A in such case shall be deemed to have been issued on the 31st day of March of
such financial year:
Provided also that for the purposes of computing the period of limitation as per this section, the
time or extended time allowed to the assessee, as per show-cause notice issued under clause (b) of
section 148A or the period during which the proceeding under section 148A is stayed by an order or
injunction of any court, shall be excluded:
Provided also that where immediately after the exclusion of the period referred to in the
immediately preceding proviso, the period of limitation available to the Assessing Officer for
passing an order under clause (d) of section 148A does not exceed seven days, such remaining
period shall be extended to seven days and the period of limitation under this sub-section shall be
deemed to be extended accordingly.
Explanation.—For the purposes of clause (b) of this subsection, "asset" shall include immovable
property, being land or building or both, shares and securities, loans and advances, deposits in bank
account.
(1A) Notwithstanding anything contained in sub-section (1), where the income chargeable to tax
represented in the form of an asset or expenditure in relation to an event or occasion of the value
referred to in clause (b) of sub-section (1), has escaped the assessment and the investment in such
asset or expenditure in relation to such event or occasion has been made or incurred, in more than
one previous years relevant to the assessment years within the period referred to in clause ( b) of
sub-section (1), a notice under section 148 shall be issued for every such assessment year for
assessment, reassessment or recomputation, as the case may be.
(2) The provisions of sub-section (1) as to the issue of notice shall be subject to the provisions of
section 151.'

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62-68

[Time limit for notices under sections 148 and 148A.

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