Dear Experts and friends,
1. For how many AYs, Notice under Section 142(1) can be issued ? I have seen in a case of a Construction Company, Department has issued Notice u/s 142(1) for AY 2010-11 to 2016-17 asking for some details and books. Is this a valid Notice?
2. Can Department issue Notice u/s 143(2) before issuing notice u/s 142(1) for the same AY?
Please kindly suggest.
1. Though there is no time limit for issuing notice u/s. 142(1)......... but only in case if return were not filed or not properly verified or invalidated........
2. But if properly filed, then the notice should follow after the notice u/s. 143(2), which might have been issued earlier or returned back. If nothing of short...... Than it not valid.
For more discussion refer: https://www.caclubindia.com/forum/notice-u-s-142-1--422221.asp
Correct ..............
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11:34:48 Thank you for contacting us. An operator will be with you shortly. Note : The replies are based on the opinion of the expert and in no manner it should be interpreted as the clarification by the Income-tax Department on any matter.
11:34:48 Bijay: Can AO issue Notice u/s 143(2) before issuing notice u/s 142(1) for the same AY provided the return has been already filed and Notice u/s 143(2) was issued within the time allowed?
11:35:33 Operator Tax Expert 33 joined the chat
11:35:36 Tax Expert 33: Hello
11:38:18 Tax Expert 33: Request you to please be patient with us, we are trying to get information for you.
11:38:38 Bijay: ok
11:39:49 Tax Expert 33: Yes AO can issue Notice under Section 143(2) before issuing notice under section 142(1) if the return has been filed under section 139
11:41:30 Tax Expert 33: Do you have any other query?
11:41:39 Bijay: Yes one more please
11:43:25 Bijay: If Time is barred for issuing Notice u/s 143(2), Can the AO issue Notice u/s 142(1) asking for documents/books etc?
11:45:26 Bijay: If yes, then How the AO will deal with such documents/books if NOT satisfied and under which section, AO will initiate Assessment [I believe it is NOT under section 143(3)] ?
11:46:56 Tax Expert 33: Section 142(1) is for the purpose of filing Income tax return and furnishing books and documents and Section 143(2) is for assessment
11:47:55 Bijay: Yes. I mean to say Return has been filed u/s 139(1) and AO just asked Documents/books u/s 142(1)?
11:48:18 Bijay: And time is barred for issuing notice u/s 143(2).
11:49:02 Bijay: Now How AO will deal with such documents/books?
11:49:03 Tax Expert 33: Yes AO can ask for documents/books under section 142(1)
11:49:08 Bijay: If Not satisfied?
11:49:54 Tax Expert 33: Yes AO can ask for documents/books under section 142(1)
11:49:58 Tax Expert 33: Do you have any other query?
11:51:06 Bijay: Ok. Then after receiving books u/s 142(1), AO is not satisfied with it. He wants to do detailed assessment. Then under which section he can do that?
11:51:46 Tax Expert 33: Request you to please be patient with us, we are trying to get information for you.
11:52:03 Bijay: ok
11:52:25 Tax Expert 33: You can contact your Jurisdictional Assessing officer for this query
11:53:00 Tax Expert 33: Do you have any other query? 11:53:05 Bijay: ok thanks a lot. 11:53:10 Bijay: no other query.
11:53:19 Tax Expert 33: Thank you for chatting with us. Have a nice day. Good bye
This is the Chat details in CBDT Website.
As per my understanding, if Return has been filed u/s 139(1), and Notice u/s 143(2) is time barred to initiate Assessment u/s 143(3) and Notice has been issued u/s 142(1) asking for books but AO is not satisfied with these books, then AO can do Assessment u/s 144 or 147 but not under 143(3).
(However, to do assessment u/s 147, Notice u/s 148 is required to be issued.)
Is it correct?
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As per my understanding, if Return has been filed u/s 139(1), and Notice u/s 143(2) is time barred to initiate Assessment u/s 143(3) and Notice has been issued u/s 142(1) asking for books but AO is not satisfied with these books, then AO can do Assessment u/s 144 or 147 but not under 143(3). ANS: Here there is a catch. When reply to notice u/s. 142(1) issued, assessment u/s. 143(3) will progress assuming acceptance of notice u/s. 143(2) by assessee. Unless the objection is not raised about the time barred notice of 143(2), it will be concluded as its acceptance.
Ans: Yes |
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Thank you sir for your kind response.
Most Welcome...
An informative case law for study........ attached.....
| Originally posted by : Dhirajlal Rambhia | ||
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An informative case law for study........ attached..... |
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