Sec 143(1): Summary Assessment:
It provides for the computation of the total income of an assessee after making the following adjustments:
- Any arithmetical error in the return.
- 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/-.
- Disallowance of loss claimed, if return is filed after due date.
- Disallowance of exp. indicated in the audit report not considered in ROI.
- 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