Various Assessment u/s 143

Arshita Gupta , Last updated: 13 March 2019  
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Sec 143(1): Summary Assessment:

It provides for the computation of the total income of an assessee after making the following adjustments:



  1. Any arithmetical error in the return.
  2. An incorrect claim, if same is apparent from information provided in the ROI. Eg TDS claim not matching with 26AS or deductions claimed is more than 150000/-.
  3. Disallowance of loss claimed, if return is filed after due date.
  4. Disallowance of exp. indicated in the audit report not considered in ROI.
  5. Disallowance of deduction u/s 10AA, 80IA, 80IB, 80IAB, 80IC, 80ID etc., if return is filed after due dat

However, before making any adjustment an intimation is to given to the assessee requiring him to respond to such adjustment. The respond received if any, has to be duely considered before making any adjustment. However, if no respond is received within a period of 30 days of issue of such intimation, processing shall  be carried out with such adjustment.

  • After processing, an intimation is send if there is refund/demand/adjustment of losses. Practically an intimation is send in all cases. However where there is no refund/demand/adjustment of losses, intimidation under this section is considered as acknowledgement of return.
  • Intimation shall be issued within 1 year from the end of financial year for in which return is filed. Eg if return is filed on 31st july, 2018 then intimation shall be send on or before 31st march, 2020.

Sec 143(1D): Notwithstanding anything contained in sub section (1), the processing of return shall not be necessary, where a notice has been issued to assessee u/s 143(2). Provided that provision of this section shall not apply to any returned furnished for the AY 2017-18 onwards.

Sec 143(2): Notice of Scrutiny

If A.O. or prescribed Income Tax authority consider necessary to ensure that Assesse has not understated income or has not computed excessive loss or has not underpaid tax, then A.O. can Issue notice in normal manner for making assessment

Time Limit for Scrutiny Notice u/s 143(2): 6 months from the end of FY in which return was filed. Notice u/s 143(2) can be issued after intimation u/s 143(1).

Sec 143(3): Order of Scrutiny

Based on material & evidences furnished by assessee in response to notice u/s 143(2) or gathered by A.O., A.O. shall determine the income or loss of assessee by way of passing an order u/s 143(3) along with the amount of tax payable or refundable.

Any institution to whom exemption u/s 10 is available, A.O. cannot disallow such exemption unless Govt./prescribed authority has rescinded the notification for withdrawing the exemption. The time period for completing the assessment will exclude the period b/w the date on which A.O. gives the intimation of default and the date on which copy of order withdrawing the approval is received by A.O.

Sec 144: Best Judgement Assessment:

A.O. shall make BEST JUDGEMENT ASSESSMENT in following conditions:

a. Fails to furnish return u/s 139(1) or belated return u/s 139(4) or revised return u/s 139(5);
b. Furnished return but fails to comply with provisions of notice u/s 143(2) (Scrutiny notice)
c. Failure to comply with notice u/s 142(1) (Inquiry notice) or directions u/s 142(2A) (Special Audit)

BJA can be taken only after issuing a SHOW CAUSE NOTICE, giving opportunity of being heard to the assessee u/s 144 (expect if assessee fails to comply with notice u/s 142(1), no opportunity of being heard is given). 

No refund shall be issued under this section.

Assessment shall be completed (order passed) u/s 143(3) and sec 144 within the period of 12 months from the end of relevant A.Y. (for AY 2019-20).

Sec 144A: Power of Joint Commissioner to issue directions


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Arshita Gupta
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Category Income Tax   Report

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Comments

04 April 2019 balaji

good information


02 April 2019 Varma

Hi Sir, we received notice 143(1a) for arithmetic error on march 17 and we have 30 days to respond but that error is correct and need to file revised return and for AY:2017-18 due date for filing is over, Please suggest.


18 March 2019 Jayaram Marthy

dear ashish, 143 has only 1 type of assmt which is regular assmt which dept calls, and we call it scrutiny. 143(1) is processing of return. there are only 3 types of assmt under IT,143 being regular, 147- reassessment. 153- block assmt. rest is all revision ,rectification etc.


15 March 2019 Muralikrishnan K

SOME SUPREME COURT CASE LAWS IF MENTIONED WILL BE USEFUL.


16 March 2019  Arshita Gupta
I will surely study and try to quote
  

15 March 2019 surendra sangawa

Fruitful articles


15 March 2019 Vinod Barochia

Informative article


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