Notice u/s 142(1) & air information

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Querist : Anonymous

Querist : Anonymous (Querist)

12 August 2014 I want to ask the followings:
1. I received a notice for AIR transaction for F-Y 2009-10 on 27.07.2014. Is there any period of limitation in I.T.Act for this?
2. Further I received another notice u/s 142(1) clause (b) for same F-Y on 06.08.2014 along with a questionnaire. The subject of questionnaire is - " Scrutiny assessment in your case for A-Y 2010-11." My question is that notice u/s 142(1) is valid ? I have filed my ROI for said A-Y u/s 139(4).
3. When time for assessment u/s 143(3) has been expired then why A.O. has issued questionnaire using heading above?
4. What should be proper steps in this case?
Thanks in Advance.
Regards

Nikhil Kaushik

Nikhil Kaushik (Expert)

12 August 2014 answer to ques 1 and 2. yes the notice is valid.

with regards to question 3, have u received 142(1) notice or 143(2) notice?

and even where you take position that 143(3) is time barred, you may end up getting a 148 notice!

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Querist : Anonymous

Querist : Anonymous (Querist)

13 August 2014 Dear Mr. Nikhil Kaushik,
I have received only notice u/s 142(1) with attached questionnaire mentioned above.
Now please clear me following:
Sec.141(1) Proviso:
(b) the A.o.shall not require the production of any accounts relating to a period more than three years prior to the previous year.

now here previous year is 2013-14 and as per proviso A.O. can not ask for accounts before 2010-11 and my notice relates to 2009-10.

Nikhil Kaushik

Nikhil Kaushik (Expert)

13 August 2014 The limitation for the three years is for three years prior to the previous year under assessment. So if I wish to assess AY 2014-15, three previous year shall be FY 2012-13, 2011-12, 2010-11. So you need to count three years from the relevant previous year and not the year in which notice is issued.

Nikhil Kaushik

Nikhil Kaushik (Expert)

13 August 2014 Also, once you get into this debate with ITD, department has right to summon books of accounts for past six years under section 131. So be assured that department has enough powers to catch hold of you if it wishes to.

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