How to reply to a 148A(b) notice is one of the most critical stages in reassessment proceedings under the Income-tax Act. A notice under section 148A(b) is not reassessment yet, but a weak or careless reply at this stage almost guarantees issuance of a notice under section 148.
Below is a practical, field-tested structure for replying to a 148A(b) notice.
What the law says (in simple words)
Section 148A(b) requires the Assessing Officer to give you an opportunity of being heard before reopening an assessment. The officer must consider your reply and pass an order under section 148A(d).
This stage exists to filter out bad reassessment cases.
If your reply is factual, supported by documents, and point-wise, the proceedings can be dropped at this stage itself.
How to Reply to a 148A(b) Notice – Step-by-Step Structure
1. Acknowledge the notice (do not argue yet)
Start by referring to:
- Notice number
- Date
- Assessment Year
Keep this factual and neutral. Do not admit anything.
2. Reproduce the allegation exactly
Quote or summarise exactly what the department is alleging:
- Cash deposit
- Unexplained credit
- Information from third party
- Audit objection, etc.
This shows clarity and prevents the AO from shifting grounds later.
3. Explain facts clearly (this is the core)
For each allegation:
- State the true facts
- Explain the nature of transaction
- Mention source of funds
- Clarify timing and accounting treatment
Avoid legal jargon here. Facts come first.
4. Support facts with documents
After explaining facts, refer to documents as Annexures, such as:
- Bank statements
- Sale deeds
- ITR acknowledgements
- Balance sheet / capital account
- Confirmations
Do not dump documents without explanation.
5. Legal objections (only where applicable)
After facts:
- Point out lack of tangible material, if any
- Mention limitation issues, if apparent
- Highlight jurisdictional defects, if clear
Do not over-argue law unless necessary.
At this stage, facts defeat reassessment more effectively than law.
6. Clear closing request
End with a simple, firm request:
- That proceedings be dropped
- That no notice under section 148 be issued
- That reply and documents be duly considered
Common mistakes to avoid
- Filing a casual or generic reply
- Copy-pasting replies from the internet
- Making admissions without verification
- Uploading irrelevant or excessive documents
- Missing the deadline
- Arguing only law without explaining facts
These mistakes almost always lead to reopening.
Documents checklist (keep ready)
- Copy of 148A(b) notice
- ITR of the relevant assessment year
- Bank statements
- Transaction-wise explanation
- Supporting contracts / deeds
- Any earlier correspondence with department
What NOT to Do While Replying to a 148A(b) Notice
Many reassessment cases fail because of mistakes committed at the 148A(b) stage. Avoid the following:
- Do not admit facts casually
- Do not provide information beyond the allegation
- Do not mix legal arguments with factual replies
- Do not ignore limitation or jurisdiction issues
A reply under section 148A(b) must be precise, factual, and controlled.
Importance of Documents in a 148A(b) Reply
Every factual assertion in your reply should be supported by documents. Unsupported explanations are often brushed aside while passing the order under section 148A(d).
Documents should:
- Be clearly indexed
- Directly rebut the allegation
- Match disclosures already made in the return
Consistency is critical.
Can Proceedings Be Dropped at the 148A Stage?
Yes. If your reply:
- Explains the transaction fully
- Rebuts the allegation with evidence
- Demonstrates no escapement of income
The Assessing Officer is legally bound to drop the proceedings by passing a favourable order under section 148A(d).
This stage exists specifically to prevent bad reassessment cases.
Practical Takeaway
A 148A(b) notice is the last effective checkpoint before reassessment.
A well-structured reply can end the matter permanently.
A careless reply can open years of litigation.
Related reading
- Received a 148A Notice? What to Do Within 48 Hours
- How to Reply to a 148A(b) Notice – Practical Reply Structure
- Difference Between Section 148, 148A and 151 – Explained Simply
- Can an Assessment Be Reopened Only on Audit Objection?
- Section 148A Reassessment Quashed – Key Case Laws on Defective Procedure
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