Assessment/ reassesment

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 April 2014 Hi, I have a question for which I am unable to find an answer for. :

If refund for AY 2013-14 has been issued and credited , Can the ITR be opened for scrutiny/ reassessment at a later date?
If yes, doesn't a refund mean an assessment under 143(1) has been completed and that scrutiny/reassessment cannot/should not or are most unlikely to be opened. because why would the tax dept. give a refund if they had to scrutinize the file, but, if so then for how long will the ITR be under observation?

Thanks

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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25 April 2014 as per section 147 it can be opened within 4 years and 6 years in some cases even if refund order is passed under sec 143(1).

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Nikhil Kaushik

Nikhil Kaushik (Expert)
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25 April 2014 please note 143(1) is just an intimation and not an order. even after issue of refund under 143(1), normal assessment can be carried out by issuing notice under 143(2).

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Querist : Anonymous

Querist : Anonymous (Querist)

25 April 2014 Thank you Nikhil, Thank you Tushar for your replies!

But don't you think it should be rare that the tax dept would issue a notice u/S 142(2) or 147 after issuing a refund. Doesn't a notice U/s 143(1) mean that the ITR has been thoroughly checked? Why would they return the refund money with them, when they can just hold on to it till all enquires are complete, u/s 143(2) or 147.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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25 April 2014 no, 143(1) doesnt always mean that way as there can be a tax evasion already planned and they might come to know later so 147 can be invoked if its within time limit and condition therein are satisfied.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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25 April 2014 143(1) never means completion of assessment unless issue of 143(2) notice becomes time-barred.

143(1) intimation is merely an arithmetical check of the return filed. For eg: if you have claimed Rs 1.2 lakhs under 80c, 143(1) will disallow Rs 20000 straightaway. However, it won't verify the authenticity of claim of Rs 1 lakhs. If the AO wants to verify the authenticity of the claims made in the return, he/she shall issue 143(2) notice.

However, 143(2) notice can only be issued a time period (prescribed under 153(1).

once this period is over and where AO has reason the believe that certain income has escaped assessment, then he/she can issue 147 notice.

Querist : Anonymous

Querist : Anonymous (Querist)

27 April 2014 Thank you Nikhil and Thank you Tushar, for your time and knowledge! It was most helpful. Appreciate it.

Thanks again!

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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28 April 2014 you are welcome friend.............

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