Assessment

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Querist : Anonymous

Querist : Anonymous (Querist)

17 November 2013 1) By when must an assessing officer complete/finalize his assessment say for A.Y. 2011-12?
2) During the course of the assessment, can the officer call for bank passbooks/account statements from the banks in which the assessee holds accounts.?

3) Can the Assessment Officer question the assessee about the reasons/purpose of his EXPENDITURE/PAYMENTS made rom his Bank Accounts even if the income reflected in the passbook/bank statement is the same as that in the IT Return for that particular A.Y.. or can he raise questions ONLY ABOUT INCOME & NOT PAYMENTS/EXPENDITURE?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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17 November 2013 1. Lets assume that you filed return on 30 September 2011, the assessment should be completed 31 March 2014.

2. Yes he can call for the bank statements.

3. He can ask question about income as well as expenditure.

Querist : Anonymous

Querist : Anonymous (Querist)

17 November 2013 Thanks for the prompt reply. But sorry I was not clear. I was referring to an individual whose income is only from SALARIES and the expenditure/payments from bank are such on which NO DEDUCTIONS/EXEMPTIONS ARE CLAIMED in paying tax by the individual with only salary income. Can the assessment officer ask questions about such payments made from the salary income. I am anxious to maintain the privacy of some personal payments made by cheque from the bank to which my salary was credited.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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17 November 2013 yes even then the AO can ask questions regarding expenditure. However, generally expenses made through cheques are not questioned.

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Nikhil Kaushik

Nikhil Kaushik (Expert)
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17 November 2013 and please remember if you are unable to explain source of such expenditure, additions can be made under Secion 69C.

"69C. Where in any financial year an assessee has incurred any expenditure and he offers no explanation about the source of such expenditure or part thereof, or the explanation, if any, offered by him is not, in the opinion of the 37[Assessing] Officer, satisfactory, the amount covered by such expenditure or part thereof, as the case may be, may be deemed to be the income of the assessee for such financial year :]"

Querist : Anonymous

Querist : Anonymous (Querist)

17 November 2013 Sir, I must really thank you for your interest and kindness. I am not worried about the source of income from which such payments were made. They were all made from the income reflected in the IT Return. I am bothered about being asked to explain why or the purpose for which certain payments were made and about parties to whom such paymemts were made..

Nikhil Kaushik

Nikhil Kaushik (Expert)
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17 November 2013 1. Under your own assessment he can't ask you to justify the expense.

However, he can ask you a lot of details like name of the parties etc through a section 133 notice.

Querist : Anonymous

Querist : Anonymous (Querist)

18 November 2013 Sir, Thank you very much. I took my time to reply as I was looking up sec. 133. I am now well informed and better prepared for the assessment. Regards

Querist : Anonymous

Querist : Anonymous (Querist)

18 November 2013 Sir, Thank you very much. I took my time to reply as I was looking up sec. 133. I am now well informed and better prepared for the assessment. Regards

Nikhil Kaushik

Nikhil Kaushik (Expert)
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18 November 2013 Well glad to hear that. Take care

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