Time limit for completion of scrutiny for notice under 143(2

Originally posted by : prabhaaas
	A private limited company has received a notice under section 143 ( 2) for the financial year 2011-12 ( assessment year 2012-13 ) in the month of August 2013. The return was filed in September 2012.   what is the time limit for completion of assessment ? Transfer pricing issues are not involved.

Sec. 143(3) deals with Scrutiny Assessment.

For Scrutiny Assessment, AO need to send notice u/s 143(2) within 6 Months from the end of the AY in which return has been filed.

If return has not been filed, they can’t do scrutiny assessment.

Further Sec. 153 states the time limit for the completion of Assessment.

Assessment u/s 143(3) or u/s 144 (Best Judgment Assessment) = Time limit=> Within 2 years from the end of the relevant AY.

So after considerig the above, we reached at the conclusion that they have issued the notice within time.

The Assessment must be completed within 2 Years from the end of the AY i.e. by March'15.