Dealing with Intimation u/s 143(1)

Answers are:

1. validity of intimation can't be challenged as no intimation u/s 143(1) will show grounds for determining income.

2. Better have a personal meet with AO to identify and analyse his method of determining income.

3. Rectification u/s 154 is possible only for mistake apperant from record. In your case, there is very remote possibility of mistake apperant from record. Still you can also persist with it.

One of our clients received an intimation u/s 143(1) for AY '09-10, from the CPC..

The above client is running a small textile shop in our town and his disclosed net profit was a little more than Rs.1,60,000/- for the said AY. No TDS has been claimed by the assessee for the said AY.

However, in the intimation, the AO has determined his income to be Rs. 2,65,000/-. However, the basis of which such determination was done can't be identified from the intimation.

My questions are:

1. Whether such intimation without showing sufficient grounds for determining the income u/s 143(1), valid?

2. What follow-up measures should we adopt to identify the method adopted by AO?

3. If a rectification u/s 154 is possible, what procedures should we adopt for seeking such rectification?

Kindly reply ASAP, coz its very urgent…