Assessment

This query is : Resolved

Aakash Thakrar (Querist)
Follow

06 June 2014 can anyone pls tell me what is fresh assessment, annulment of assessment, re assessment, setting aside of assessment. section 153A. And how does an assessment come to an end. Thank you

Aakash Thakrar

Aakash Thakrar (Querist)
Follow

11 June 2014 Assessment

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
Follow

14 July 2024 Certainly! Let's clarify the terms and concepts related to assessments under the Income Tax Act, particularly under Section 153A.

### Definitions:

1. **Fresh Assessment:**
- A fresh assessment refers to the initiation of a new assessment proceeding by the Income Tax Department. This can happen, for example, when the original assessment is set aside or annulled, and a new assessment needs to be conducted.

2. **Annulment of Assessment:**
- Annulment of assessment occurs when the previously completed assessment is declared null and void. This could be due to procedural irregularities, legal defects, or other reasons that render the assessment invalid.

3. **Reassessment:**
- Reassessment refers to the process of assessing income again for a particular assessment year. This typically happens when the Assessing Officer (AO) believes that income has escaped assessment due to oversight, omission, or any other reason specified under the Income Tax Act.

4. **Setting Aside of Assessment:**
- Setting aside of assessment occurs when the completed assessment is temporarily suspended or invalidated. This could happen, for instance, if the assessment is found to be erroneous or if certain procedural steps were not followed correctly.

### Section 153A of the Income Tax Act:

- Section 153A of the Income Tax Act, 1961, deals with assessment proceedings in cases where a search and seizure operation has been conducted by the Income Tax Department. It applies to cases where undisclosed income is detected during such operations.

- **Initiation of Proceedings:** Section 153A empowers the Assessing Officer to initiate assessments or reassessments of the undisclosed income discovered during a search operation.

- **Time Limit:** It specifies time limits within which assessments or reassessments must be completed following a search operation.

### How Does an Assessment Come to an End?

An assessment typically comes to an end once the assessing officer completes the process of determining the total income or loss of the assessee for the relevant assessment year. The assessment process involves:

- **Scrutiny of Records:** Examining books of accounts, financial statements, documents, and other evidence provided by the taxpayer.

- **Issuance of Assessment Order:** After scrutiny, the assessing officer issues an assessment order determining the taxable income or loss, applicable tax liability, and any other tax-related matters.

- **Notice to Assessee:** The assessee is informed of the assessment order, and any tax liability is communicated to them.

- **Appeal Process:** The assessee has the right to appeal against the assessment order if they disagree with the findings of the assessing officer.

- **Completion of Proceedings:** Once all appeals and reviews are exhausted, or if the time limit for filing appeals expires, the assessment process for that particular assessment year is considered concluded.

In summary, assessments under the Income Tax Act can be complex, especially in cases involving search and seizure operations (covered under Section 153A). It's crucial for taxpayers to understand their rights and obligations during the assessment process and seek professional advice if needed to navigate through assessments effectively.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now