The Central Board of Direct Taxes and Customs (CBDT) issued the
Instructions regarding the selection of cases for the issue of notice
under section 148 of the Income-tax Act, 1961.
The Board with an objective of streamlining the process of selection of
cases for the issue of notices under section 148 of the Act, directed
that the various categories of cases be considered as ‘potential cases’
for taking action under section 148 of the Act by March 31, 2021, for
the Assessment Year 2013-14 to 2017-18 by the Jurisdictional Assessing
Firstly, Cases where there are Audit Objections (Revenue/Internal) which
require action under section 148 of the Act.
Secondly, cases of information from any other Government Agency/Law
Enforcement Agency which require action under section 148 of the Act.
Thirdly, Potential cases including reports of Directorate of Income-tax
(Investigation), reports of Directorate of Intelligence & Criminal
Investigation, and cases from Non-Filer Management System (NMS) & other
cases as flagged by the Directorate of Income-tax (Systems) as per risk
Fourthly, cases where information arising out of field survey action,
requiring action under section 148 of the Act.
Lastly, cases of information received from any Income-tax authority
requiring action under section 148 of the Act with the approval of the
Chief Commissioner of Income Tax concerned.
It is noteworthy that no other category of cases, except the above,
shall be considered for taking action under section 148 of the Act by
The Board has clarified that action under section 148 of the Act shall
be taken by the Assessing Officer in respect of the above categories of
cases after forming a reasonable belief that income chargeable to tax
has escaped assessment and ‘reasons to believe’ shall be recorded and
required sanction as per section 151 of the Act shall be obtained before
issuing notice under section148 of the Act.
These instructions shall not be applicable to the Central charges and
International Taxation charges for which separate instructions are being