simultaneously two proceedings under income tax may be started

as may be issued notice u/s 142(1) or 148 of act for escapement
Replies (1)

Notice under Section 142(1) is usually served to call upon documents and details from the tax payers, and to take a particular case under assessment.

The basic purpose is to inquire the details of the assessee before making assessment under the Act. It can be related to ‘Preliminary Investigation’ before starting the assessment.

By serving a notice u/s 142(1) the assessing officer, may call upon the assessee:-

1. To furnish a return of income in respect of which he is assessable, where he has not filed his return of income within the normal time allowed.

2. To produce accounts or documents which the AO may require for the purpose of making an assessment.

3. To furnish in writing any information on matters including statement of the assessee. For Example- statement of assets and liabilities of the assessee on a particular date.

The AO may or may not start assessment after compliance with this notice, dependent upon the facts of assessee. If AO is satisfied with the produced documents or return, he may not start with the assessment process.

Before a scrutiny assessment is carried out, a notice under section 142(1) of Income Tax Act can be sent to the taxpayer asking them to submit or produce their return (if not already filed) or certain documents, records and information which the AO thinks is necessary to make the correct assessment of income of the taxpayer.

So, it is part and parcel of the scrutiny assessment.

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