Short answer: A Section 148A notice asks you to show cause why your assessment should not be reopened. Reply within the time given; first check whether the notice is within the time limit and approved by the specified authority, ask for all information relied on, and then answer on the merits with documents. For assessment years up to 2026-27, the 1961 Act procedure continues to apply even after 1 April 2026.
Which Act governs your notice
The Income-tax Department’s reassessment FAQs state that reassessment for assessment years up to 2026-27 can still be initiated and completed under the Income-tax Act, 1961, even after 1 April 2026, with approvals under Section 151 of that Act. A Section 148A(1) notice issued before 1 April 2026 keeps the whole sequence, including the Section 148A(3) order and the Section 148 notice, under the 1961 Act, subject to the limitation in Section 149. Sections 279 to 286 of the Income-tax Act, 2025 apply from Tax Year 2026-27.
Time limits under Section 149
- A Section 148A show cause notice can be issued within three years from the end of the relevant assessment year. Between three and five years, it is permitted only if the information suggests escaped income of Rs 50 lakh or more.
- A Section 148 notice can be issued within three years and three months; beyond that, up to five years and three months, only if the Assessing Officer has books, documents or evidence showing escaped income that “amounts to or is likely to amount to fifty lakh rupees or more”.
- Under Section 282 of the 2025 Act, the corresponding limits are counted from the end of the tax year: four years for the show cause notice, extended to six years where the Rs 50 lakh test is met, with three further months for the Section 280 notice.
What Rajeev Bansal decided
In Union of India v. Rajeev Bansal (3 October 2024), a three-judge Bench led by Chief Justice D.Y. Chandrachud allowed 727 Revenue appeals. It held that after 1 April 2021 the Act must be read with the substituted provisions, that the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (TOLA) relaxes only the time for issuing a Section 148 notice, and that the roughly 90,000 notices issued between 1 April and 30 June 2021, deemed to be Section 148A show cause notices under Ashish Agarwal (2022), had to meet the surviving time limits. Each reopening must fall within the surviving time, and “All notices issued beyond the surviving period are time barred and liable to be set aside.” The ruling also fixed the time within which Section 151 approvals had to be granted.
The jurisdictional officer versus faceless issue
Section 147A, inserted by the Finance Act, 2026 with retrospective effect from 1 April 2021, treats a jurisdictional officer as the Assessing Officer for Sections 148 and 148A. The Punjab and Haryana High Court declared it unconstitutional, and in September 2026 the Supreme Court stayed that ruling in Union of India v. Bharat Industrial Enterprises Pvt. Ltd., directing that assessment and reassessment proceedings not proceed further until final disposal, with final hearing listed on 3 December 2026. Preserve this objection if your notice came from a jurisdictional officer.
Structuring the reply
A careful reply usually covers, in order: limitation and the Rs 50 lakh threshold; valid approval; whether all information relied on was supplied; whether it actually suggests escaped income; prior disclosure; and the merits, with documents. Ask for a personal hearing.
Related questions
How much time do I get to reply?
The period is stated in the notice. If you need more time, apply in writing before it expires and give reasons, so that the request is on record.
What happens after I reply?
The Assessing Officer passes a reasoned order deciding whether it is a fit case, with the approval of the specified authority, and only then issues the reopening notice. Under the 2025 Act this is an order under Section 281(3), followed by a Section 280 notice requiring a return within a period not exceeding three months.
Can I challenge the notice in the High Court?
Jurisdictional defects such as limitation or want of valid approval have been raised in writ petitions; the Rajeev Bansal batch itself arose from such petitions. Merits are ordinarily left to the assessment and appeal.
How long does the Department have to complete reassessment?
Under Section 286(1) of the 2025 Act, the order must be passed within one year from the end of the financial year in which the Section 280 notice was served, subject to specified extensions and exclusions.
Practical points
- Note the assessment year and the date of the notice, and compute limitation before anything else.
- Check whether the escaped income alleged crosses Rs 50 lakh where the notice is beyond three years.
- Ask for copies of the information, approval and any reports relied on.
- Keep objections on jurisdiction and Section 147A on record even while replying on merits.
Sources: Income Tax Department, Section 149 of the Income-tax Act, 1961; Income Tax e-Filing Portal, Reassessment proceedings FAQs; LiveLaw, Union of India v. Rajeev Bansal, 3 October 2024; LiveLaw Biz, Section 147A stay, 18 September 2026.
For a confidential discussion on income-tax search and assessment matters, see Income-tax Search and Seizure.
General legal information only; not legal advice or solicitation.
