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Notice under section 143(2)

NIKITA (CA FINAL, CS) (111 Points)

21 November 2012

For notice under section 143(2), for how many years books of accounts can be demanded?

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11 Replies

Raj Kr (CA Final student ) (200 Points)
Replied 21 November 2012

sorry frnds......the correct ans. is only 4 that year whose year notice send n it depends under which section assessment will made

Rama Kant Sultania (Director) (22 Points)
Replied 21 November 2012

Three Year Accounts can be demanded when notice is received u/s 143(2)

CA Bhargav Nathwani (CA in Practice) (8307 Points)
Replied 21 November 2012

6 years Agree with Raj.

CA Ruben Balooni (Professionalism ™) (1324 Points)
Replied 21 November 2012

Originally posted by : Rama Kant Sultania
	Three Year Accounts can be demanded when notice is received u/s 143(2)

That is when notice is issued u/s 142(1)(ii).

In 143(2) AO can demand books of accounts of last 6 years.

Raj Kr (CA Final student ) (200 Points)
Replied 21 November 2012

for more clarity.read this

For how many years books of accounts are required to be preserved: Every year the record of books of accounts grows up and the cupboards filled up more and more. Every assessee wants to know for how many years he should keep the records of his books of accounts.

Rule 6F(5) provides that the books of accounts and other documents are to be kept for at least 6 years from the end of relevant assessment year. That means from the assessment year 2009-10 one should keep books of accounts upto the assessment year 2003-04 i.e. books of accounts offinancial year 2002-03.

The time limit for issuing notices for assessment or reassessments have been prescribed u/s 149, after the end of such prescribed time no notice can be issued and no assessment can be framed, therefore the assessee will not need books of accounts of the concerned year. Keeping in mind the time limit as provided u/s 149 for issuing notice the following suggestions are made regarding preservation of books of accounts:

1) If the assessee has made an appeal against any assessment order of any year then the books of accounts of such year should be preserved until the final decision of such appeal.

2) Where the assessment in relation to any Year has been reopened u/s 147 within time u/s 149, in such case all the books of account and documents shall continue to be kept till the assessment so reopened has been completed.

3)Books of accounts for only 7 financial years should be preserved. Therefore the taxpayers should keep books of accounts of only financial year 2002-03 and onwards.

NEERAJ TIWARI (ARTICLE) (47 Points)
Replied 22 November 2012

First of all Let me clear that u/s 143(2) notice is served for scrutiny assesment. and he can demand only for theyear under scrutiny. But simultaneously he will issue notice u/s 142(2) and will demand of previous three year.

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Raj Kr (CA Final student ) (200 Points)
Replied 22 November 2012

Not agree wid neeraj ...please frnds Quote legal text wid ur comments

NEERAJ TIWARI (ARTICLE) (47 Points)
Replied 22 November 2012

142. Inquiry before assessment.

(1) For the purpose of making an assessment under this Act, the Assessing Officer may serve on any person who has made a return under section 139 or in whose case the time allowed under sub-section (1) of that section for furnishing the return has expired a notice requiring him, on a date to be therein specified,-

(i) where such person has not made a return within the time allowed under sub-section (1) of section 139, to furnish a return of his income or the income of any other person in respect of which he is assessable under this Act, in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed, or

(ii) to produce, or cause to be produced, such accounts or documents as the Assessing Officer may require,or

(iii) to furnish in writing and verified in the prescribed manner information in such form and on such points or matters (including a statement of all assets and liabilities of the assessee, whether included in the accounts or not) as the Assessing Officer may require:

Provided that-

(a) the previous approval of the Joint Commissioner shall be obtained before requiring the assessee to furnish a statement of all assets and liablities not included in the accounts;

(b) the Assessing Officer shall not require the production of any accounts relating to a period more than three years prior to the preivious year.

(2) For the purpose of obtaining full informatation in respect of the income or loss of any person, the Assessing Officer may make such inquiry as he considers necessary.