Notice u/s.142(1) for the Assessment year 2018-2019

Assessment/Re-assessment is a procedure adopted to determine the correctness of the income disclosed by the assesses and tax payable thereon.

Section 147 and 148 of Income Tax Act is a well designed weapon for the Income Tax Department empowering it to assess, re-assess or re-compute income, turnover etc, which has escaped assessment.

Section 147 and Section 148 of the Act contain the per-requisite conditions to be fulfilled for invoking the jurisdiction to reopen the assessment.
 

Inquiry before assessment:

A scrutiny assessment order is always preceded by the issue of notice under sec. 143(2). This notice can be further supported by a notice under sec. 142(1) calling for certain information/details.

Section 142(1): Notice under sec. 142(1) is issued only when an ROI is already filed, or the time limit for filing the return is over. This notice is issued for either asking the assessee to file the ROI or to call for details where the ROI has been filed.

However, no such information can be called for relating to a period more than three years prior to the previous year. If the AO desires details of assets and liabilities not included in the accounts he shall do so only after obtaining the previous approval of the Joint Commissioner.