RAJESH H THAKKAR M. 9825888880 ASSESSMEN’ SEC. 143(1 SUMMERY ASSESSMENT: ( WITHOUT CALLING ASSESSEE ): ‘The assessing officer can complete, the assessment without passing a regular AORDER After making the following adjustments: = An erithmatical error in the return = An incorrect claim, which is apparent from the information in the return Disallowance of loss claimed, if the return of previous year for which loss is set off claimed was furnished late. = Disallowance of Exp indicated in audit report, but not taken into consideration in computing total income. = Addition of income appearing in Form: 26AS or Form 164 or 16 whi cluded as income in return. The adjustments will be made only in the course of Centralized Processing Centre. = An opportunity shall be provided to the "A" before making such adjustments to explain and rectify the same within 30 days of such intimation. = The response of the assessee shall be consider before making adjustments. = The Intimation must be sent before the end of the one year, from the end of the finacial year in which the assessee filed return, Processing of the return U/s. 143(1) is MANDATORY. has not been SEC. 1433): REGULAR /SCRUITINY ASSESSMENT : Where the return of income is filed w/s. 139 or in response to the notice w/s. 142(1), The assessing officer considers, necessary to ensure that the assessee - - has not understated the income; or - has not computed excessive loss; or - has not under- paid tax in any manner shall serve the notice to the assessee requiring him on a date specified in the notice to appear OR to produce or cause to be produce any evidence on which the "A" rel of his return, BUT - Such Notice can not be served upon the assesee, after the expiry of six moths from the end of the financial year in which the return is furnished. ORDER ‘The Assessing Officer, after taking into consideration the evidence produced, and any such other evidence as the Assessing Officer may require on specified points, and after gathering the information and the material on record, he shall pass an order in writing make an assessment of total income or loss and determined the sum payable by him or refund of any amount due to him on the basis of such assessment. in supportSEC. 144: BEST JUD! ‘T_ASST’ The Assessing Officer is under an obi to pass an order of his best judgement, after considering the relevent material he has gathered, under the following cases: = Ifa person fails to file the return of income U/s. 139(1) (within time limit prescribed ), or U/s. 139(4) or (5) revised return 5 = Ifa person fails to comply with the notice U/s. 142(1) or fails to comply with the direction requiring him to get his accounts audited; = Ifa person after having filed the return, fails to comply with the terms of notice Uss. 143(2), requiring him to produce an evidence or documents required by A.O. = If the A.O. is not satisfied about the correctness or the completeness of the accounts of the assessce, OR if the assessee does not maintain regular method of accounting. The Assessce, has right to appeal U/s. 246 against the order passed by the A.O. U/s. 144; OR The Assessee, has right to make an application for r jon U/s. 264 to the commissioner The Assessee must be given reasonable opportunity of being heard after serving him with a notice to show cause why the assessment should not be completed to the best judgement. Such an opportunity is not required U/s. 142(1). NOTE: THE A.O. WHILE MAKING ASSESSMENT UNDER THIS SECTION CAN NOT GRANT REFUND. the Assessee is already served with a notice SEC. 147 TO 151 REASSESSMENT: 1 If, the A.O. has Reason to believe that any income which is chargeable to tax, has escaped assessment for ANY ASSESSMENT YEAR, he may assess or reassess such income. 2 The A.O. can assess the escaped income, though has no reasons recorded in the notice at the time of issuance of the notice U/s. 147, once the assessment is reopend. 3 If the Assessee has preferred an appeal, made a reference or filed an application for revision, no such income can be subject matter under this section and A.O. can not assess or reassess such income. He can assess income other than such controversial income. 4 If the assessment is completed U/s. 143(3) or reassessed U/s. 147, after four year from from the end of the assessment year, NO ACTION CAN BE INITIATED UNDER THE PROVISIONS OF THIS SECTION.UNDER FOLLOWING CIRCUMSTANCES IT IS SAID TO BE THE ESCAPEMENT OF INCOME: 1 The total is income is above the TAXABLE INCOME, and the assessee did not furnish the return of income U/s. 139. 2 Where, the Assessee furnished the return of income, but no assessment is made, the assessee is found to have understated his income, OR claimed excessive loss OR claimed deduction in the return filed. 3 Where the assessment has been made, but the income is under assessed OR has been Assessed at too low rate OR any excessive loss, relief, deduction, depreciation allowance or any other allowance has been allowed. 4 Where the Assessing Officer received information or ducuments from the prescribed authority in search proceedings, on the basis of the same, it is noticed that the assessee has not filed the return of income, though his income is above the maximum amount, not chargeable to tax OR he has understated the income or has claimed excessive loss or deduction, allowance or relief in the return. 5 Where a person is found to have any asset located outside INDIA. The Assessing officer has to serve a notice requiring an assessee to furnish a return of income and before issuing notice, he has to record the reasons for making assessment or reassessment or recomputation of income of the assessee. SEC.154: RECTIFICATION OF MISTAKE : 1 The Income tax Officer ean make an order to rectify any mistake and amend the order. 2 The Income tax Officer can pass an order to rectify any mistake and amend the order which is not a subject matter in appeal.. 3 The mistke to be rectified is an apparent mistake and obvious mistake. error of fact / a clerical or arithmatial mistake / error in determining WDV / subsequent amendment in law. 4 The point on which two different views are possible - can not be rectified. 5 The concern authority, who has made earlier order can only pass rectification order. 6 The mistake may be brought to the notice of Officer concerned by the "A" or deductor or collector. 7 The order of Rectification cannot be passed after 4 years of passing the order sought to be amended. 8 Where an application made by the assessee for Rectification of mistake and to amend the order, the authority has to pass an order within 6 months either accepting or rejecting the application, 9 The order of Rectification should be in writing. 10 Before passing the Rectification order enhancing tax liability or reducing refund, the concerned authority has to give reasonable opportunity of hearing before passing an order.