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Claim when assessee has receivednotice u/s 143(2)

Pawan Mittal (CA Final) (711 Points)

18 July 2017

An assessee has received notice for complete scrutiny u/s 143(2).

Can he reduce excess income wrongly disclosed by him in his Income Tax Return?

Please tell me the complete procedure.

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4 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (183881 Points)
Replied 18 July 2017

Yes, the return can be revised even after receipt of notice u/s. 143(2).

First check validity of the notice and then follow the proceedure.

guides/income-tax-notice-us-143(2)

even this video may be useful a bit

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Pawan Mittal (CA Final) (711 Points)
Replied 18 July 2017

Respected Sir,

Thanks a lot for guiding so fast. But If any one revises one’s Return, one will expose himself for penalties if claim is not accepted by the Authorities as revised Return will be deemed as Original Return.

I want to get guidance in response to notice u/s 143(2), whether a claim can be made saying it was disputed matter , so I did not claim in my return for the fearing of penalties if claim is not accepted, but now there is scrutiny so I want to claim that the particular income is not taxable, and if A.O. satisfies, can he accept that claim legally or reduce the income and order refund in scrutiny u/s 143(2) or simply it can not be accepted in scrutiny procedure as this procedure is only to increase the tax, i.e. for the benefit of the Department ?

And if the A.o. did not accept the additional claim made during the scrutiny u/s 143(2) procedure, can assessee go further in appeal for getting allow additional claim ?

Your few words are a lot for me,

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (183881 Points)
Replied 18 July 2017

I would suggest that:::

Whatever you had declared in original return......... would be verified by your books of accounts, bank statements etc. etc.....

Now if you fill that the assessing officer may search out some objectionable transactions and penalize for that.............. you have been given a chance to revise it and make best suitable to your actual transactions.

Both way........ any such transactions, declared would required authetic reasons for its taxability (ie when exempt). Undeclared transactions cannot have any reason, as you are supposed to declare each and everything and offer any tax liability over it.

It is generally experienced that many such authetic reasons which may not be accepted by officer (for the benefit of department), are declared in favor of assessee in tribunal &/or courts.

Finally, let me suggest to do proper homework and accept your tax liabilities in the revised return; thus release maximum stress in the beginning itself.