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DOUBT!! SECTION 147 & 143(3)

Tax queries 1029 views 6 replies

Hello


This is with regard to assessment procedure under income escaping assessment u/s 147.

Can 147 assessment be initiated when regular assessment u/s 143(3) is pending for the same matters?

 

Thanks in advance

Replies (6)

No

Why would anybody initiate action u/s 147 when proceedings u/s 143(3) is pending?  It is not and cannot be done.  Do you have any specific case like that ?

No specific case as such. This is how i got confused! :

What if while doing 143(3) the AO comes across escaped income which is not referred to in the notice? He cant include it right.. What is the course of action for the AO then??

Hi " Member "

Got a specific case. CIT vs Smt Shakuntala Devi .. Punjab & Haryana Court

Originally posted by : Sowmya P K

No specific case as such. This is how i got confused! :

What if while doing 143(3) the AO comes across escaped income which is not referred to in the notice? He cant include it right.. What is the course of action for the AO then??

During the course of regular assessment, the AO is free to add any income which he feels is taxable but has not been shown as income by the assessee. 

If you happen to come across any notice u/s 143(2), you can see that it only requests the assessee to file documents in support of the return which he had filed and which is now under scrutiny.  There is no specific reason mentioned by the AO for taking up the case for scrutiny. 

Regarding the case of Shakuntala Devi, it is on an entirely different set of facts.  This is a case where instead of taking up the case for scrutiny u/s 143(2), the AO sought to issue notice u.s 147, which was upheld.  No comparision here.

Thank you :)


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