Dealing with Intimation u/s 143(1)

Vivek Kurup (.) (355 Points)

22 July 2010  

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…