Notice u/s 148, in case of an agent of a non-resident, cannot be issued after the expiry of two years from the end of relevant assessment year. Also, it cannot be issued without passing an order u/s 163(2):

AO issued a notice u/s 148 describing the petitioner as an agent of a foreign company i.e. a non-resident without passing an order u/s 163(2)treatingthe petitioner as an agent of the foreign company. On filing a Writ petition, the Hon’ble High Court held that the said notice was time barred as per the provisions of S.149(3) as the same was issued after the expiry of two years from the end of relevant assessment year. It was further held that the impugned notice was to be quashed as no order was passed u/s 163(2) prior to issuance of the said notice.Further, the notice was also liable to be quashed on the ground of incongruity as the notice u/s 148 described the petitioner as an agent of the foreign company whereas earlier, AO had issued notice u/s 163(1) to the petitioner asking him to show cause as to why he should not be treated as an agent of some third person and not the said foreign company.

[ARVIND MILL LTD. - TAX APPEAL Nos.8857 & 8858 of 2003 - GHC]