Assess Pro 1

N.A.D.T.
, Nagpur
APRIL, 2009
AS SESS MENT
PRO CED URE
SEC . 139 o nwar ds
by
Dr Vinay Kumar Singh
1
Additional Director (Faculty),
NATIONAL ACADEMY OF DIRECT
TAXES, NAGPUR
Introduction to Income-
LAW tax .
Voluntary I.T.I.s
CITIZENS OF
compliance
INDIA I.T.O.s
Asstt/Dep. Cs
Elections C.s I.T. (Appeal) I.T.
ORDERS Addl./Jt.C.s I.T.
LEGISLATURE C.s I.T.
I.T.A.T.
OF INDIA C.C.s I.T.
S.C. / H.C. C.B.D.T.
Interpretation of
intention of legislature M.O.F.
CASE
Intension of legislature STATUTE LAWS
GOAL POLICY LAW ADMINISTRATION
-Collection of revenue for -EQUITY -Standard text -RULES

PUBLIC GOODS -NEUTRALITY -Conveys intention -PROCEDURE
-Redistribution of income -EFFICIENCY of legislature to -CONVENTIONS
-Behaviour modification -PREDICTABILITY Administrators &
-ADEQUACY compliers
2
PRINCIPLES OF NATURAL Introduction to Income-
tax .
JUSTICE
• Law is made by the
LEGISLAT EXECUTIV
URE E representatives of the citizens
JUDICIA
RY • All public servants work for the
citizens of the country
• Executive has the responsibility
of ensuring compliance of the
Law
• Income tax authorities are
QUASI-JUDICIAL in nature
• While exercising this
responsibility, and while dealing
with citizens, they must follow
the basic principles of natural
justice:
– APPRECIATION OF EVIDENCE
– OPPORTUNITY OF BEING
HEARD
3
– SPEAKING ORDER
LIMITATIONS ON AUTHORITY OF
tax .
EXECUTIVE
• LIMITATION OF POWER
– No action can be taken by an executive that
impinges upon any of the rights of the citizens,
EXECUTIV unless the Law authorizes such action
E
– Action can only be taken by the authority to
whom the power is delegated, ONLY within his
JURISDICTION
– There must be application of mind by that
authority
– Action must be BONA-FIDE & NON-
DISCRIMINATORY (NEUTRALITY)
• LIMITATION OF TIME
– Time limits often defined in the Act for certain
actions
– No action possible once BARRED BY TIME
LIMITATION
• LIMITATION OF INTERPRETATION
4
– Words (& phrases) defined in the statute
tax .
INCOME-TAX AUTHORITIES
Sec. 116. There shall be the following classes of income-tax
authorities for the purposes of this Act, namely :
(a) the Central Board of Direct Taxes constituted under the Central
Boards of Revenue Act, 1963 (54 of 1963),
(b) Directors-General of Income-tax or Chief Commissioners of
Income-tax,
(c) Directors of Income-tax or Commissioners of Income-tax or
Commissioners of Income-tax (Appeals),
(cc) Additional Directors of Income-tax or Additional Commissioners of
Income-tax or Additional Commissioners of Income-tax (Appeals),
(cca) Joint Directors of Income-tax or Joint Commissioners of Income-
tax,
(d) Deputy Directors of Income-tax or Deputy Commissioners of
Income-tax or Deputy Commissioners of Income-tax (Appeals),
(e) Assistant Directors of Income-tax or Assistant Commissioners of
Income-tax,
(f) Income-tax Officers,
(g) Tax Recovery Officers,
(h) Inspectors of Income-tax.
5
tax .
INCOME-TAX AUTHORITIES
EXECUTIVE
Sec. 2 (7A)
Sec. 2 (28)
Sec. 2 (25)
Sec. 2 (9A) / 2(9B) / 2(19A)/ 2(19C)
Sec. 2 (1C) / 2(1D) / 2(28C)/ 2(28D)
Sec. 2 (16)
Sec. 2 (15A)
Sec. 2 (12)
Sec. 117 (1)
6
tax .
ASSESSING OFFICER
Sec. 2 (7A) Assessing Officer means
the Assistant Commissioner or Deputy
Commissioner or Assistant Director or
Deputy Director or the Income-tax
Officer who is vested with the relevant
jurisdiction by virtue of directions or
orders issued under sub-section (1) or
sub-section (2) of section 120 or any
other provision of this Act,
and the Additional Commissioner or
Additional Director or Joint
Commissioner or Joint Director who is
directed under clause (b) of sub-section
(4) of that section to exercise or
perform all or any of the powers and 7
tax .
ASSESSING OFFICER
Sec. 2 (7A) Assessing Officer
Sec. 120 Jurisdiction of income-tax authorities
(1) Income-tax authorities shall exercise all or any of the
powers and perform all or any of the functions conferred
on, or, as the case may be, assigned to such authorities
by or under this Act in accordance with such directions as
the Board may issue for the exercise of the powers and
performance of the functions by all or any of those
authorities.
Explanation. For the removal of doubts, it is hereby
declared that any income-tax authority, being an
authority higher in rank, may, if so directed by the Board,
exercise the powers and perform the functions of the
income-tax authority lower in rank and any such direction
issued by the Board shall be deemed to be a direction
issued under sub-section (1).
(2) The directions of the Board under sub-section (1) may
8
authorise any other income-tax authority to issue orders
tax .
ASSESSING OFFICER
Sec. 2 (7A) Assessing Officer
Sec. 120 Jurisdiction of income-tax authorities
4) Without prejudice to the provisions of sub-sections (1) and (2), the
Board may, by general or special order, and subject to such
conditions, restrictions or limitations as may be specified therein,
(a) authorise any Director General or Director to perform such
functions of any other income-tax authority as may be assigned to
him by the Board;
(b) empower the Director General or Chief Commissioner or
Commissioner to issue orders in writing that the powers and
functions conferred on, or as the case may be, assigned to, the
Assessing Officer by or under this Act in respect of any specified
area or persons or classes of persons or incomes or classes of
income or cases or classes of cases, shall be exercised or
performed by an Additional Commissioner or an Additional
Director or a Joint Commissioner or a Joint Director, and, where
any order is made under this clause, references in any other
provision of this Act, or in any rule made thereunder to the
Assessing Officer shall be deemed to be references to such
9
Additional Commissioner or Additional Director or Joint
tax .
ASSESSMENT OF INCOME
Sec. 2 (24)
RETURN OF INCOME
for the
Sec. 2 (9) Sec. 2 (34)
ASSESSMENT YEAR / PREVIOUS YEAR
Sec. 2 (8)
ASSESSMENT
of ASSESSEE
INCOME
TAX Sec. 2 (7)
Sec. 2 (43)
10
tax .
ASSESSEE
Sec 2(7) assessee means a person by
whom any tax or any other sum of
money is payable under this Act, and
includes
(a) every person in respect of whom any
proceeding under this Act has been
taken for the assessment of his
income or assessment of fringe
benefits or of the income of any other
person in respect of which he is
assessable, or of the loss sustained
Not necessary to have by him or by such other person, or of
actual proceedings the amount of refund due to him or to
inititiated and pending such other person ;
for being considered a
assessee (b) every person who is deemed to be
ITO vs. DDA [200] 252 an assessee under any provision of
ITR 772 (SC) this Act ; 11
tax .
PERSON
Sec(31) person includes
(i) an individual,
(ii) a Hindu undivided family,
(iii) a company,
(iv) a firm,
(v) an association of persons or a body of
individuals, whether incorporated or
not,
(vi) a local authority, and
(vii) every artificial juridical person, not
falling within any of the preceding sub-
clauses.
Explanation. For the purposes of this clause, an
association of persons or a body of
individuals or a local authority or an
artificial juridical person shall be deemed to
be a person, whether or not such person 12 or
tax .
PREVIOUS YEAR / ASSESSMENT YEAR
Sec 2 (34) Sec 3
Sec 3 Previous year

defined.
3. For the purposes of this Act,
previous year means the
financial year immediately
preceding the assessment
year :
Provided that, in the case of a
business or profession
newly set up, or a source of
income newly coming into
Sec 2 (9) assessment year existence, in the said
means the period of twelve financial year, the previous
months commencing on the 1st year shall be the period
day of April every year ; beginning with the date of
setting up of the business
or profession or, as the 13
tax .
PREVIOUS YEAR / ASSESSMENT YEAR
Financial Act Part 1 , First

schedule of Finance
Act
Sec 4 Charge of income-tax.

(1) Where any Central Act enacts that income-tax shall be
charged for any assessment year at any rate or rates,
income-tax at that rate or those rates shall be charged
for that year in accordance with, and subject to the
provisions (including provisions for the levy of additional
income-tax) of, this Act in respect of the total income of
the previous year of every person :
e.g..
Sec 158B, Provided that where by virtue of any provision of this Act
Sec 174(1) income-tax is to be charged in respect of the income of
a period other than the previous year, income-tax shall
be charged accordingly.
(2) In respect of income chargeable under sub-section (1), 14
income-tax shall be deducted at the source or paid in
tax .
INCOME
Sec 2 (24)
SALARIES Sec 17
HOUSE Sec 22
PROPERTY Sec 28
HEADS OF BUSINESS OR
INCOME PROFESSION
CAPITAL GAINS Sec 45
Sec 14 OTHER Sec 56
SSOURCES
15
tax .
INCOME
Rs. Rs.
OPENING STOCK 100 SALE RECEIPTS 300
PURCHASES 200 CLOSING STOCK 200
ELECTRICITY 100
GROSS PROFIT 100
------ ------
500 500
------ ------
SALARIES GROSS PROFIT 100

30 INTEREST ON LATE PAYMENTS
RENT 20 10
TRAVELLING 10
OFFICE EXPENSES
10
NET PROFIT 40 -------
------ 110
110
Net profit as per accounting / books may be different from the ‘profit & gains’ referred
in IT Act as certain expenses clamed may not be allowable as deduction.
16
tax .
RETURN OF INCOME
Return of income
Section 139 (1) Every person, if his total income or the total income of
any other person in respect of which he is assessable under this Act
during the previous year exceeded the maximum amount which is not
chargeable to income-tax, shall, on or before the due date, furnish a
return of his income or the income of such other person during the
previous year, in the prescribed form and verified in the prescribed
manner and setting forth such other particulars as may be prescribed.
Rule 12 - Return of income

and Return of Fringe benefits
ITR - 1 TO 8
17
tax .
ASESSMENT
Sec 139 (1)
Sec 2 (8)
18
tax .
ASESSMENT
Sec 2 (8) assessment includes reassessment
;
Sec 2 (40) regular assessment means the assessment
made under subsection (3) of section 143 or section 144 ;
Sec 143 (3)
(3) On the day specified in the notice -
(i) issued under clause (i) of sub-section (2), or as soon

afterwards as may be, after hearing such evidence and after
taking into account such particulars as the assessee may
produce, the Assessing Officer shall, by an order in writing,
allow or reject the claim or claims specified in such notice and
make an assessment determining the total income or loss
accordingly, and determine the sum payable by the assessee
on the basis of such assessment. ................
19
tax .
ASESSMENT
;
144. Best judgment assessment
Sec 144 (1) If any person-

(a) fails to make the return required under sub-section (1) of
section 139 and has not made a return or a revised return under
subsection (4) or sub-section (5) of that section, or
(b) fails to comply with all the terms of a notice issued under
subsection (1) of section 142 or fails to comply with a direction
issued under sub-section (2A) of that section, or
(c) having made a return, fails to comply with all the terms of a
notice issued under sub-section (2) of section 143,
The Assessing Officer, after taking into account all relevant
material which the Assessing Officer has gathered, shall, after
giving the assessee an opportunity of being heard, make the
assessment of the total income or loss to the best of his
judgment and determine the sum payable by the assessee on
the basis of such assessment: 20
tax .
ASESSMENT
;
Income escaping assessment
Sec 147. If the Assessing Officer has reason to believe that

any income chargeable to tax has escaped assessment for any
assessment year, he may, subject to the provisions of sections
148 to 153, assess or reassess such income and also any
other income chargeable to tax which has escaped
assessment and which comes to his notice subsequently in the
course of the proceedings under this section, or recompute the
loss or the depreciation allowance or any other allowance, as
the case may be, for the assessment year concerned
(hereafter in this section and in sections 148 to 153 referred to
as the relevant assessment year): …………..
21
tax .
ASESSMENT
;
Self-assessment

Sec 140A (1) Where any tax is payable on the basis of any
return required to be furnished under section 139 or section
142 or, as the case may be, section 148, after taking into
account the amount of tax, if any, already paid under any
provision of this Act, the assessee shall be liable to pay such
tax together with interest payable under any provision of this
Act for any delay in furnishing the return or any default or
delay in payment of advance tax, before furnishing the return
and the return shall be accompanied by proof of payment of
such tax and interest.
22
tax .
ASESSMENT
;
Processing of Return
Sec 143(1) Where a return has been made under section 139,
or in response to a notice under sub-section (1) of section 142,
such return shall be processed in the following manner
namely :-
•The total income or loss shall be computed after making the
following adjustments namely:-
(i) any arithmetical error in the return; or
(ii) an incorrect claim, if such incorrect claim is
apparent from any information in the return;
…………………
(d) An intimation shall be prepared or generated and sent to

the assessee…
(e) The amount of refund due to the assessee ….. shall be 23
Introduction to Income-tax .
ASESSMENT
RETURN OF INCOME SELF
for the ASSESSM
ASSESSMENT YEAR / PREVIOUS YEAR
ENT
PROCESSING OF RETURN
Sec 2 (29)
LEGAL
Sec 2 (29)
BOOKS REPRESENTATI
OF VE
ACCOUNT
S
DOCUMEN ASSESSEE
TS AUTHORISED
Sec 2 (22AA) REPRESENTATI
VE
Sec 288 (2)
ASSESSMENT of INCOME
REASSESSMENT of INCOME
TAX
24
tax .
ASESSMENT
Sec 2 (29) legal representative has the meaning
assigned to it in clause (11) of section 2 of the Code of Civil
Procedure, 1908 (5 of 1908)
Code of Civil Procedure, 1908
Sec 2 (11) "legal representative" means a person who in law
represents the estate of a deceased person, and includes
any person who intermeddles with the estate of the deceased
and where a party sues or is sued in a representative
character the person on whom the estate devolves on the
Secdeath of the
2(12A) partyor
books sobooks
suing or
of sued;
account includes ledgers, day-
books, cash books, account-books and other books, whether kept
in the written form or as print-outs of data stored in a floppy,
disc, tape or any other form of electro-magnetic data storage
device;
Sec 2 (22AA) document includes an electronic record as

defined in clause (t)3 of sub-section (1) of section 2 of the
Information Technology Act, 2000 (21 of 2000); 25
tax .
AUTHORISED REPRESENTATIVE
Sec 288. (1) Any assessee who is entitled or required to attend
before any income-tax authority or the Appellate Tribunal in
connection with any proceeding under this Act otherwise than
when required under section 131 to attend personally for
examination on oath or affirmation, may, subject to the other
provisions of this section, attend by an authorised
representative.
(2) For the purposes of this section, "authorised
representative" means a person authorised by the assessee in
writing to appear on his behalf, being-
(i) a person related to the assessee in any manner, or a person
regularly employed by the assessee; or
(ii) any officer of a scheduled bank with which the assessee
maintains a current account or has other regular dealings; or
Explanation.-In this section, "accountant" means a chartered accountant
(iii) any legal practitioner who is entitled to practise in any civil
within the meaning of the Chartered Accountants Act, 1949 (38 of 1949),
court in India; or
and includes, in relation to any State, any person who by virtue of the
(iv) an accountant; or
provisions of sub-section (2) of section 226 of the Companies Act, 1956 (1 of
1956), is entitled to be appointed to act as an auditor of companies
registered in that State.
Chartered Accountants Act, 194926
Section 2(1)(b) "chartered accountant" means a person who is a member
tax .
AUTHORISED REPRESENTATIVE
Sec 288. (2) For the purposes of this section, "authorised
representative" means..
(v) any person who has passed any accountancy examination

recognised in this behalf by the Board-,' or
(vi) any person who has acquired such educational qualifications
as the Board may prescribe for this purpose; or
(via)any person who, before the coming into force of this Act in
the Union territory of Dadra and Nagar Haveli, Goa, Daman
and Diu, or Pondicherry, attended before an income-tax
authority in the said territory on behalf of any assessee
otherwise than in the capacity of an employee or relative of
that assessee; or]
(vii) any other person who, immediately before the
commencement of this Act, was an income-tax practitioner
within the meaning of clause (iv) of sub-section (2) of section
61 of the Indian Income-tax Act, 1922 (11 of 1922), and was
actually practising as such.
27

tax .
TAX
28
tax .
TAX
29
tax .
TAX
30
tax .
TAX
XYZ
T.D.S.
PAYMEN
TS
ASSESSEE
ADVANCE
TAX
SELF SELF
ASSESSME ASSESSMENT
TAX
NT [+
INTEREST
]
TAX DEMAND
ASSESSING
ASSESSME
OFFICER
NT 31
tax .
AGRICULTURAL INCOME
CONDITIONS : (i) Person to whom Para A of Part I applies : Individual, HUF, AOP,
BOI, AJP (ii) Total income > the max non-taxable income (iii) Agri income > Rs
5000
COMPUTE AGRI INCOME FROM EACH INCOME PARTIALLY AGRICULTURE,
SOURCE SEPERATELY PARTIALLY BUSINESS
+
+
+
DEEMED AGRI INCOME – SHARE IN
AOP [R-5]
+ +
ANY LOSS MAY BE ADJUSTED AGAINST

OTHER AGRI INCOME EXCEPT THE LOSS
- ARISING FROM SHARE OF AOP
SUM OF AGRICULTURAL INCOME FROM NET

IF IT IS A LOSS, DEEMED
- ALL SOURCES
UNABSORBED AGRI LOSS OF A PY OF
EARLIER (8) AY
AGRI
INCO Carried
TO BE NIL
ME forward 32
tax .
ASESSMENT
TOTAL INCOME
Sec 2 (45)
33
tax .
TOTAL INCOME
Sec 2(45) total income means the total amount of income
referred to in section 5, computed in the manner laid down in
this Act
Sec 5 (1) Subject to the provisions of this Act, the total income
of any previous year of a person who is a resident includes all
income from whatever source derived which
(a) is received or is deemed to be received in India in such year
by or on behalf of such person ; or
(b) accrues or arises or is deemed to accrue or arise to him in
India during such year ; or
(c) accrues or arises to him outside India during such year :
Provided that, in the case of a person not ordinarily resident in
India within the meaning of sub-section (6) of section 6, the
income which accrues or arises to him outside India shall not be
so included unless it is derived from a business controlled in or a
profession set up in India.
34

tax .
TOTAL INCOME
Sec 2(45) total income means the total amount of income
referred to in section 5, computed in the manner laid down in
this Act
Sec 5 (2) Subject to the provisions of this Act, the total income
of any previous year of a person who is a non-resident includes all
income from whatever source derived which
(a) is received or is deemed to be received in India in such year
by or on behalf of such person ; or
(b) accrues or arises or is deemed to accrue or arise to him in
India during such year.
Explanation 1. Income accruing or arising outside India shall not
be deemed to be received in India within the meaning of this
section by reason only of the fact that it is taken into account in a
balance sheet prepared in India.
Explanation 2. For the removal of doubts, it is hereby declared
that income which has been included in the total income of a
person on the basis that it has accrued or arisen or is deemed to
have accrued or arisen to him shall not again be so included on35
tax .
GROSS TOTAL INCOME
CHAPTER VI A DEDUCTIONS IN RESPECT OF
CERTAIN INCOME
Sec 80B In this chapter -
(5) "gross total income" means the total income
computed in accordance with the provisions of this Act,
before making any deduction under this Chapter
-
GROSS TOTAL DEDUCTIONS
INCOME UNDER
CHAPTER VI A
= TOTAL INCOME
36
tax .
TOTAL INCOME
SALARY + INCOME OF OTHER
+ PERSONS
INCLUDED IN
HOUSE PROPERTY TOTAL INCOME
+ (CHAPTER V)
+ for
BUSINESS & PROF adjustment of
INCOME ON WHICH
+ NO INCOME-TAX IS losses,
OTHER SOURCES PAYABLE UNDER CHAPTER VI
+ +
CHAPTER VII
LTCG CASH CREDITS,

+ +
UNEXPLAINED
INVESTMENTS,
STCG EXPENDITURE ETC.
(Sec
68,69A,69B,69C,69D)
-
DEDUCTIONS
GROSS TOTAL
INCOME
UNDER
CHAPTER VI A
= TOTAL INCOME
37
tax .
RESIDENT
Sec 2 (42) resident means a person who is resident in

India within the meaning of section 6
Sec 2 (30) non-resident means a person who is not a

resident , and for the purposes of sections 92, 93 and
168, includes a person who is not ordinarily resident
within the meaning of clause (6) of section 6 ;
38
tax .
RESIDENT
10 9 8 7 6 5 4 3 2 1
1998-
2004-
2005-
2007-
2000-
2001-
2002-
2003-
2006-
1999-
00
01
03
05
99
02
04
06
07
08
2008-09
≥ 182
DAYS
≥ 60
≥ 365 DAYS DAYS
NON-RESIDENT IN ≥ 9 YEARS
≤ 729 DAYS
39
Assessment Procedure
.
ASSESSMENT PROCEDURE
• CHAPTER XIV
of INCOME TAX ACT FORMS
NOTIFICATIONS
1961 CIRCULARS
• PART III
• ASSESSMENT of INCOME TAX RULES
PROCEDURE 1962
• ASSESSMENT
• Sec 139 to 158 PROCEDURE
CASE LAWS • Rule 12 to 15
40
.
RETURN OF INCOME
Sec 139 (1) Every person,
• being a company or a firm; or
(b) being a person other than a company or a firm, if his
total income or the total income of any other person
in respect of which he is assessable under this Act
during the previous year exceeded the maximum
amount which is not chargeable to income-tax, shall, on
or before the due date, furnish a return of his
income or the income of such other person during the
previous year, in the prescribed form and verified in
the prescribed manner and setting forth such
other particulars as may be prescribed :
Sec 2 (33) prescribed means prescribed by rules made under this Act ;
41
.
prescribed form
RETURN OF INCOME
Rule 12. (1) The return of income required to be furnished
under sub-section (1) or sub-section (3) or sub-section (4A) or
sub-section (4B) or sub-section (4C) or sub-section (4D) of
section 139 or clause (i) of sub-section (1) of section 142 or
sub-section (1) of section 148 or section 153A or the return of
fringe benefits required to be furnished under sub-section (1) or
sub-section (2) of section 115WD relating to the assessment
year commencing on the 1st day of April, 2008 shall,
(a) in the case of a person being an individual where the total
income includes income chargeable to income-tax under the
head Salaries or income in the nature of family pension as
defined in the Explanation to clause (iia) of section 57 but does
not include any other income except income by way of
interest chargeable to income-tax under the head Income from
other sources, be in Form No. ITR-1 and be verified in the
manner indicated therein;
(b) in the case of a person being an individual not being an
individual to whom clause (a) applies or a Hindu 42
undivided family where the total income does not include
.
prescribed form
RETURN OF INCOME
A snapshot from https://incometaxindiaefiling.gov.in/portal/individual_huf.do
43
.
prescribed form
RETURN OF INCOME
A snapshot from ITR-1
RULE 12 (1) (a) “...............................verified in the manner indicated therein”

44
.
RETURN OF INCOME
(b) being a company or a firm; or
or the
(b) being a person other than a company or a firm, if his total income
total income of any other person in respect of which he
is assessable under this Act during the previous year exceeded
the maximum amount which is not chargeable to income-tax, shall, on or before
the due date, furnish a return of his income or the income of such other
person during the previous year, in the prescribed form and verified in the
prescribed manner and setting forth such other particulars as may be
Sec 2(7) assessee
prescribed : means a person by whom any tax or any other sum of money is
payable under this Act, and includes
(b) every person who is deemed to be an assessee under any provision of this Act
CHAPTER XV LIABILITY IN SPECIAL CASES

Sec 159 – LEGAL REPRESENTATIVE (a)Agent of a non-resident
Sec 160 – REPRESENTATIVE ASSESSEE (b) Guardian / Manager of

minor/lunatic/idiot
Sec 163 – AGENT
(c) Court of wards/
Sec 168 – EXECUTOR Administrator General/
Sec 170 – SUCCESSOR Trustee appointed by court
(d) Trustee (trust with 45
.
RETURN OF INCOME
(b) being a company or a firm; or
(b) being a person other than a company or a firm, if his total income or the total
income of any other person in respect of which he is assessable under this Act
during the previous year exceeded the maximum amount which is not
chargeable to income-tax, shall, on or before the due date, furnish
a return of his income or the income of such other person during the
previous year, in the prescribed form and verified in the prescribed
manner and setting forth such other particulars as may be prescribed :
Explanation 2.In this sub-section, due date means,
• where the assessee is (i) a company; or (ii) a person (other than a company)
whose accounts are required to be audited under this Act or under any
other law for the time being in force; or (iii) a working partner of a firm whose
accounts are required to be audited under this Act or under any other law for the
time being in force, the 30th day of September of the assessment year;
(substituted by Finance Act 2008, w.e.f. 1.4.2008)
(b) …….
(c) in the case of any other assessee, the 31st day of July of the assessment year
46
.
RETURN OF INCOME
PROVIS
Sec 139 O-1
One by six scheme …
(1)
Who should file; when; PROVIS
……...up to AY 2005-06
how O-2
PROVIS Every co. / firm to file return
O-3
PROVIS Filing of return reqd, if TOTAL INCOME without
Sec 139 O-4 giving effect to Exemptions u/s 10A, 10B, 10BA
or deduction u/ Chap VI A exceeds amount
not chargeable to tax
Provided also that every person, being an individual or a Hindu undivided family or
an association of persons or a body of individuals, whether incorporated or not, or
an artificial juridical person, if his total income or the total income of any other
person in respect of which he is assessable under this Act during the previous year,
without giving effect to the provisions of section 10A or section 10B or
section 10BA or Chapter VI-A exceeded the maximum amount which is not
chargeable to income-tax, shall, on or before the due date, furnish a return of
his income or the income of such other person during the previous year, in the
prescribed form and verified in the prescribed manner and setting forth such other
particulars as may be prescribed.
47
.
RETURN OF INCOME
Scheme of filing of
returns by
salaried
employees
through
Schemeemployer,
for bulk
2004
filing of returns by
(1 Filing of return by salaried employees through employer
salaried
A) employees,2002
(1 E – filing of return Electronic furnishing of returns of
B) income scheme 2007
Return to be filed for carrying forward a LOSS under ‘Profits
(3) & gains from business & profession’ or ‘capital gains’
Sec 80. Notwithstanding anything contained in this Chapter, no loss which has
not been determined in pursuance of a return filed in accordance with the
provisions of sub-section (3) of section 139, shall be carried forward and set
off under sub-section (1) of section 72 or sub-section (2) of section 73 or sub-
section (1) or sub-section (3)] of section 74 or sub-section (3) of section 74A.
Loss under ‘House property’ ?? u/s 71B ??

48
.
RETURN OF INCOME
Scheme of filing of
returns by
salaried
employees
through
Schemeemployer,
for bulk
2004
filing of returns by
(1 Filing of return by salaried employees through employer
salaried
A) employees,2002
(1 E – filing of return Electronic furnishing of returns of
B) income scheme 2007
Return to be filed for carrying forward a LOSS under ‘Profits
(3) C / F LOSS RETURN & gains from business & profession’ or ‘capital gains’
(4) BELATED RETURN Up to one year from the end of relevant AY or assessment
Filing of return reqd, if TOTAL INCOME without giving

(4 CHARITABLE TRUST
effect to Sec 11 & 12 exceeds max amount not taxable
A)
Filing of return reqd, if TOTAL INCOME without giving
(4 POLITICAL PARTY
effect to Sec 13A exceeds max amount not taxable
B)
49
.
RETURN OF INCOME
For certain institutions / associations/trade unions - Filing of

return reqd, if TOTAL INCOME without giving effect to
clause 21 / 22B/ 23A / 23B / 23C of Sec 10 exceeds max
(4 INSTITUTIONS U/S 10 amount not taxable
C)
UNIVERSITY Every University, college or educational institute referred in clause
(4 COLLEGE (ii) or (iii) of Sec 35 (1) not otherwise required to file return – REQD.
D)
On discovery of omission / wrong statement – up to one
(5) REVISED RETURN year from the end of relevant AY or assessment
Information to income exempt, assets, bank account, credit card,
(6) be furnished expenditure, other outgoings s may be PRESCRIBED
(6 Audit report etc Audit return, principal place, branches, partners, members etc
A) If AO considers return defective – opportunity for rectify
(9) DEFECTIVE RETURN
within 15 days / time allowed by AO 50
.
RETURN OF INCOME
Sec 139 (9) Where the Assessing Officer considers that the
return of income furnished by the assessee is defective, he
may intimate the defect to the assessee and give him an
opportunity to rectify the defect within a period of fifteen
days from the date of such intimation or within such
further period which, on an application made in this behalf,
the Assessing Officer may, in his discretion, allow;
and if the defect is not rectified within the said period of
fifteen days or, as the case may be, the further period so
allowed, then, notwithstanding anything contained in any
other provision of this Act, the return shall be treated as
an invalid return and the provisions of this Act shall apply
as if the assessee had failed to furnish the return :
Provided that where the assessee rectifies the defect after the
expiry of the said period of fifteen days or the further period
allowed, but before the assessment is made, the Assessing
Officer may condone the delay and treat the return as a valid 51
return.
.
RETURN OF INCOME
Sec139(9) Explanation. For the purposes of this sub-section,
a return of income shall be regarded as defective
unless all the following conditions are fulfilled, namely :
(a) the annexures, statements and columns in the return
of income relating to computation of income chargeable
under each head of income, computation of gross total
income and total income have been duly filled in;
(b) the return is accompanied by a statement showing the
computation of the tax payable on the basis of the
return;
(bb) the return is accompanied by the report of the audit
referred to in section 44AB, or, where the report has been
furnished prior to the furnishing of the return, by a copy of
such report together with proof of furnishing the report;
52
.
RETURN OF INCOME
unless all the following conditions are fulfilled, namely :
(c) the return is accompanied by proof of
(i) the tax, if any, claimed to have been deducted or collected
at source and the advance tax and tax on self-
assessment, if any, claimed to have been paid
Provided that where the return is not accompanied by proof
of the tax, if any, claimed to have been deducted or collected
at source, the return of income shall not be regarded as
defective if
(a) a certificate for tax deducted or collected was not
furnished under section 203 or section 206C to the person
furnishing his return of income;
(b) such certificate is produced within a period of two years
specified under sub-section (14) of section 155;
(ii) the amount of compulsory deposit, if any, claimed to have 53
.
RETURN OF INCOME
unless all the following conditions are fulfilled, namely
:
(d) where regular books of account are maintained by the
assessee, the return is accompanied by copies of
• manufacturing account, trading account, profit and
loss account or, as the case may be, income and
expenditure account or any other similar account and
balance sheet;
(ii) in the case of a proprietary business or profession, the
personal account of the proprietor; in the case of a firm,
association of persons or body of individuals, personal
accounts of the partners or members; and in the case of a
partner or member of a firm, association of persons or
body of individuals, also his personal account in the firm,
association of persons or body of individuals;
54
.
RETURN OF INCOME
unless all the following conditions are fulfilled, namely
:
(e) where the accounts of the assessee have been
audited, the return is accompanied by copies of the
audited profit and loss account and balance sheet and
the auditors report and, where an audit of cost
accounts of the assessee has been conducted, under
section 233B of the Companies Act, 1956 (1 of 1956), also
the report under that section;
(f) where regular books of account are not maintained by
the assessee, the return is accompanied by a statement
indicating the amounts of turnover or, as the case
may be, gross receipts, gross profit, expenses and net
profit of the business or profession and the basis on
which such amounts have been computed, and also 55
disclosing the amounts of total sundry debtors, sundry
.
RETURN OF INCOME
Who
should
file a
return ?
56
.
prescribed form
RETURN OF INCOME
A snapshot from ITR-1
WHO SHOULD SIGN ??
Sec 140
57
tax .
WHO SHOULD SIGN ?
Absent from India  by PERSON DULY AUTHORISED
Can NOT sign  by PERSON DULY AUTHORISED
INDIVUD INDIVIDUAL himself
UAL Mentally incapacitated  GUARDIAN
H.U.F KARTA if absent from India / mentally incapacitated  ANY
ADULT MEMBER
Co being wound up  by LIQUIDATOR [ sec 178 (1) ]
Co. NOT RESIDENT by PERSON HAVING P.O.A.
COMPAN (enclosed
MANAGING with return)
DIRECTOR  if no MD / MD can’t sign 
Y DIRECTOR
Management taken over by Governmant  PRINCIPAL
OFFICER
FIRM MANAGING PARTNER can’t sign / no Managing partner 
ANY PARTNER (major)
AOP / BOI Any MEMBER / PRINCIPAL OFFICER
POLITICAL CHIEF EXECUTIVE OFFICER
PARTY
LOCAL PRINCIPAL
AUTHORITY OFFICER
ANY OTHER THAT PERSON / PERSON COMPETENT TO ACT
PERSON ON ITS BEHALF
Art. Juridical
PERSON 58
.
RETURN OF INCOME
RULE 12
ITR 1 TO 8
What if the return

could not be filed by
the DUE DATE
What if the return
filed is found by
assessee to be
How to file
defective
a return ?
What if the return
filed is found by A O
to be defective
59
.
RETURN OF INCOME
WHAT HAPPENS IF
Up to one year from the end

of relevant AY or assessment Return not Return not
filed by verified as
AFTER one year from the endDUE DATE prescribed
of relevant AY or assessment Return not
filed in SIGNE
prescribed D BY
form WRON
G
PERSO
N
Return invalid
RULE 12 Return
ITR 1 TO 8 not NO RETURN 60
rectifie
.
RETURN OF INCOME
WHAT HAPPENS IF
NO RETURN
Notice u/s 142 (1)

Penalty u/s 271 F
c/f losses u/s 80 not allowed
Prosecution u/s 276CC
Sec 271F. If a person who is required to furnish a return of

his income, as required under sub-section (1) of section 139
or by the provisos to that sub-section, fails to furnish such
return before the end of the relevant assessment year,
the Assessing Officer may direct that such person shall pay,
by way of penalty, a sum of five thousand rupees.
RULE
61
12
ITR 1
.
RETURN OF INCOME
WHAT HAPPENS IF
.
NO RETURN
Penalty u/s 272A(2) Notice u/s 142 (1)
Rs.100/-for every day Penalty u/s 271 F
during which the failure c/f losses u/s 80 not allowed
continues Prosecution u/s 276CC
RULE
62
12
ITR 1
.
RETURN OF INCOME
Sec 276CC. If a person wilfully fails to furnish in due time the
return of fringe benefits which he is required to furnish under sub-
section (1) of section 115WD or by notice given under sub-section (2)
of the said section or section 115WH or the return of income which
he is required to furnish under sub-section (1) of section 139 or by
notice given under 37clause (i) of sub-section (1) of section 142 or
section 148 38or section 153A, he shall be punishable,
(i) in a case where the amount of tax, which would have been evaded if
the failure had not been discovered, exceeds one hundred
thousand rupees, with rigorous imprisonment for a term which
shall not be less than six months but which may extend to
seven years and with fine;
(ii) in any other case, with imprisonment for a term which shall not be
less than three months but which may extend to three years
and with fine:
Provided that a person shall not be proceeded against under this
section for failure to furnish in due time the return of fringe benefits
under sub-section (1) of section 115WD or return of income under sub-
section (1) of section 139
(i) for any assessment year commencing prior to the 1st day of April, 1975; or
(ii) for any assessment year commencing on or after the 1st day of 63
April 1975, if
.
RETURN OF INCOME
4. Annexure-less Form
No document (including TDS certificate) should be attached to this
form. Official receiving the return has been instructed to detach all
documents enclosed with this form and return the same to the
assessee.
TDS certificates, Audit reports

etc not attached with the return
RULE WHAT HAPPENS IF

64
12
ITR 1
.
RETURN OF INCOME
Sec 139C Power of Board to dispense with furnishing
documents, etc., with the return.
(1) The Board may make rules providing for a class or classes
of persons who may not be required to furnish
documents, statements, receipts, certificates, reports of
audit or any other documents, which are otherwise under
any other provisions of this Act, except section 139D, required
to be furnished, along with the return but on demand to be
produced before the Assessing Officer.
Officer
(2) Any rule made under the proviso to sub-section (9) of section
Proviso
139 asto Sec 139
it stood (9) [Omitted
immediately before byits
theomission
Finance Act, 2007,
by the
w.r.e.f.
Finance 1-6-2006] Provided
Act, 2007 that
shall be the Board
deemed may,been
to have by rules
mademade
by it,— the
under (a) provisions
dispense, of
forthis
a class or classes of persons, with
section.
any of the conditions specified in clauses (a) to (f); or
(b) include any of the conditions specified in clauses (a) to (f) of
this Explanation in the form of return prescribed under sub-
section (1) or sub-section (6) of this section.”
65
.
RETURN OF INCOME
 Can two total incomes (e.g... of an individual & karta of HUF) be
clubbed in a single return ?
 No ........................... 164 ITR 134 (SC)
 Can an illegally constituted entity file a return of income (e.g.. A firm
constituted in contravention of the provisions of law) ?
 Madanmohan Pal vs CIT, (1994) 209 ITR 374, 379 (Allahabad)
 Is it mandatory to file a return in case of loss ?
 No
 Can unabsorbed depreciation be carried forward ?
 Yes ……………………………………….. Madanmohan Pal vs CIT, (1994)
209 ITR 374, 379 (Allahabad)
 Which assessment is referred to in Sec 139 (4) ?
Best judgement assessment u/s 144
 Whether a return submitted after assessment completed but before the
notice of demand is served would be valid ?
 No ………………..Balechand vs ITO (1969) 72 ITR 197 (SC)
 Whether a return filed after cancellation of Best judgement assessment
(within one year from the end of the relevant AY) is a valid return ?
 Yes ……………………………… Ram Bilas Kedarnath vs ITO (1963) 47 66
ITR 586 (All)
.
RETURN OF INCOME
 Can assessee revise his return whenever he wishes to do so ?
 No ; He can only revise if there was an omission or error in the
original return and the same was due to a bonafide inadvertence or
mistake on the part of the assessee ……………………………………
Sunanda Ram Deka vs CIT (1994) 210 ITR 988, 990 (Gauh)
 Can assessee file a revised return in case where his original return was
based on his own books of accounts which he claims are correct ?
 No …………………… CIT vs India’s Hobby Centre (P) Ltd [(1995) 78
Taxman 377, 384 (Cal)
 The circular no. 653 dated 15-6-1993 issued in connection with section
80D say: when the Act permits the filing of revised return, it is
expected to be considered by the assessing authority, if the same is
filed before the assessment order is made by it; otherwise, the very
purpose of giving such a right would be frustrated.
 Is it mandatory to file a return in case of loss ?
 No
 Can a revised return be filed in a case of return filed u/s 139(4) ?
 No ……………………………………….. Kumar Jagdish Chandra Sinha
v. CIT [(1996) 220 ITR 67, 75, 74(SC) ?
 Can a revised return be revised again ? 67
 YES ………………….. Niranjan Lal Ram Chandra v. CIT, (1982) 134 ITR
.
RETURN OF INCOME
 Can assessee file a return of income after assessment is completed ?
 No ; …………………………………… Balchand vs. ITO(1969) 72 ITR
197 (SC)
 Can assessee file a return after a notice for reassessment of income
has been issued to him ?
 Yes …………………… CIT vs B v R Glucose Products Ltd (2001) 250
ITR 512 (AP)
 Can an assessee file a revised return u/s 139(5) to revise a return in
which income was willfully evaded or concealed ?
 No ……………………..Sunanda Ram Deka vs. CIT (1994) 210 ITR 988
(Gau)
 Will an application to the AO disclosing some additional income amount
to a revised return ?
 No ……………………..Gopaldas Parshottamdas vs. CIT (1941) 9 ITR
130 (All)
 Can a revised return be filed to change the status ?
Can a revised return be filed to change the accounting method ?
 No ……………………………………….. Deep Narain Nagu & Co. v.
CIT [(1986) 157 ITR 37 (MP)
68
 Can a return filed u/s 139(3) be revised ?
 YES ………………….. CIT v. Periyar Dist Coop Milk Producers Union Ltd
.
RETURN OF INCOME
 A return showing u/s 139 (1) filed by an individual with total income
below taxable limit – is it a valid return?
 Yes ; …………………………………… CIT vs. Ranchhoddas Karsandas
(1959) 36 ITR 569 (SC)
 Return filed in a wrong form – will it be invalid?
 No …………………… Dhampur Sugar Mills Ltd vs. CIT (1973) 90 ITR
236 (All)
 Will a return (prior to AY 2007-08) submitted without necessary
annexures be invalid ?
 No …………………….. Dhampur Sugar Mills Ltd vs. CIT (1973) 90 ITR
236 (All)
 Can an unsigned return be treated as defective u/s 139 (9) ?
 No . It is an INVALID return……………………..Khialdas & sons vs. CIT
(1997) 227 ITR 960 (MP)
 What will happen where on a return , in place of the signature of the
assessee (an illetrate individual), his name was written on his behalf
and on his request, by his son?
 INVALID return, since the statute requires a physical contact
between the person verifying the return (whether a return of hos own
income, or of another person in a representative capacity) and the 69
signature or the mark put on the return ………………………………………..
.
Sec 139 (8)
Sec 139(8) (a) Where the return under sub-section (1) or sub-section (2)
or sub-section (4) for an assessment year is furnished after the
specified date, or is not furnished, then whether or not the Assessing
Officer has extended the date for furnishing the return under sub-
section (1) or sub-section (2), the assessee shall be liable to pay
simple interest at fifteen per cent per annum, reckoned from the day
immediately following the specified date to the date of the furnishing
of the return or, where no return has been furnished, the date of
completion of the assessment under section 144, on the amount of the
tax payable on the total income as determined on regular assessment,
as reduced by the advance tax, if any, paid, and any tax deducted at
source : Provided that the Assessing Officer may, in such cases and
under such circumstances as may be prescribed, reduce or waive the
interest payable by any assessee under this sub-section.
…………………………………………………
*(c) The provisions of this sub-section shall apply in respect of the
assessment for the assessment year commencing on the 1st day
of April, 1988, or any earlier assessment year, and references
therein to the other provisions of this Act shall be construed as
references to the said provisions as they were applicable to the
relevant assessment year.
.
P.A.N.
Sec 139A. (1) Every person,
(i) if his total income or the total income of
any other person in respect of which he is
31stMay
assessable under this Act during any
previous year exceeded the maximum
amount which is not chargeable to income- Before the end of
tax; or the accounting year
(ii) carrying on any business or profession
whose total sales, turnover or gross receipts Before the end of
are or is likely to exceed five lakh rupees in the accounting year
any previous year; or

(iii) who is required to furnish a return of
income under sub-section (4A) of section
139; or
Rule 114
(iv) being an employer, who is required to
furnish a return of fringe benefits under
section 115WD,
.
P.A.N.
Sec 139A. (1A) Notwithstanding anything contained in sub-
section (1), the Central Government may, by notification in
the Official Gazette, specify, any class or classes of persons by
whom tax is payable under this Act or any tax or duty is
payable under any other law for the time being in force
including importers and exporters whether any tax is payable
by them or not and such persons shall, within such time as
mentioned in that notification, apply to the Assessing Officer
for the allotment of a permanent account number.

.
P.A.N.
The Central Govt. by notification no. 11468, dated 29.8.2000 has
notified the following class or classes of persons who shall apply to
the A.O. for allotment of PAN
• Exporters and Importers as defined in section 2(20) and section
2(26) of the Customs Act, 1961, who are required to obtain an
importer-exporter code under section 7 of the Foreign Trade
(Development and Regulation)Act, 1992.
• Assessees as defined in rule 2(3) of Central Excise Rules, 1944.
• Persons who issue invoices under rule 57AE i.e. traders, etc,
requiring registration under Central Excise Rules, 1944.
• Persons who are assessees under service tax.
The above persons shall apply for allotment of PAN within 15 days of
the date of publication of the notification in the Official Gazette.
However, persons who may fall in the above category, after the date
of the above notification, shall apply for allotment of PAN:
• (a) in case of (I) above, before making an import or export;
• (b) in case of (ii) and (iii) above, before making am application for
registration under central excise;
.
P.A.N.
• The Central Govt. by notification no. 355/2001, dated 11-12-
2001 has further notified the following class or classes of persons:
• Persons registered under the Central Sales Tax Act, 1956 or

the general sales tax law of the appropriate State or Union
Territory, as the case may be.
• As on the date of this notification, a person falling within a class or
classes of persons referred to in paragraph I, shall apply for the
allotment of PAN within thirty days of the date of publication
of this notification in the Official Gazette.
• A person who may fall within such class or classes of persons after
the date of this notification, as is referred to in paragraph (I), shall
apply for the allotment of (PAN) before making any application
for registration under the Central Sales Tax Act, 1956 or
the general sales tax law of the appropriate State or Union
Territory, as the case may be.
.
P.A.N.
Sec 139A. (1A) Notwithstanding anything contained in sub-
section (1), the Central Government may, by notification in
the Official Gazette, specify, any class or classes of persons by
whom tax is payable under this Act or any tax or duty is
payable under any other law for the time being in force
including importers and exporters whether any tax is payable
by them or not and such persons shall, within such time as
mentioned in that notification, apply to the Assessing Officer
for the allotment of a permanent account number.
(1B) Notwithstanding anything contained in sub-section (1), the
Central Government may, for the purpose of collecting any
information which may be useful for or relevant to the
purposes of this Act, by notification in the Official Gazette,
specify, any class or classes of persons who shall apply to the
Assessing Officer for the allotment of the permanent account
number and such persons shall, within such time as mentioned
in that notification, apply to the Assessing Officer for the
allotment of a permanent account number.
(2) The Assessing Officer, having regard to the nature of
.
P.A.N.
Sec 139A. (3) Any person, not falling under sub-section (1)
or sub-section (2), may apply to the Assessing Officer for the
allotment of a permanent account number and, thereupon,
the Assessing Officer shall allot a permanent account number
to such person forthwith.
(4) For the purpose of allotment of permanent account
numbers under the new series, the Board may, by
notification in the Official Gazette, specify the date
from which the persons referred to in sub-sections (1) and (2)
and other persons who have been allotted permanent
account numbers and residing in a place to be
specified in such notification, shall, within such time as
may be specified, apply to the Assessing Officer for the
allotment of a permanent account number under the new
series and upon allotment of such permanent account
number to a person, the permanent account number, if any,
allotted to him earlier shall cease to have effect :
Provided that the persons to whom permanent account number
PAN
139A. (5) Every person shall
(a) quote such number in all his returns to, or
correspondence with, any income-tax authority;
(b) quote such number in all challans for the payment of any
sum due under this Act;
(c) quote such number in all documents pertaining to such
transactions as may be prescribed by the Board in the
interests of the revenue, and entered into by him:
Rule 114 B
Provided that the Board may prescribe different dates for

different transactions or class of transactions or for different
class of persons:
Provided further that a person shall quote General Index
Register Number till such time Permanent Account
Number is allotted to such person;
(d) intimate the Assessing Officer any change in his
address or in the name and nature of his business on
PAN Rule 114 B
Rule-114B Categories of transactions and/or document where
quoting of PAN made compulsory
• sale/purchase of any immovable property value at Rs.5 lakhs or more;
• sale/purchase of motor vehicle (other than two wheeled vehicles) which
requires registration under Motor vehicles Act, 1988;
• Time deposit exceeding Rs.50,000/- with a bank/banking
company/banking institution;
• Deposits exceeding Rs.50,000/- in Post Office Savings Bank.
• Contract for sale/purchase of securities exceeding Rs.1,00,000/-
• Opening an account with a bank/banking company/banking institution.
Where the person opening a bank account is a minor and does not
have any income chargeable to income-tax, he shall quote the PAN/GIR
number of his father or mother or guardian as the case may be.
• Application for installation of a telephone connection including cellular
connection.
• Payment to hotels/restaurants of bills exceeding Rs.25,000/- at any
time.
• Payment in cash for purchase of bank draft or pay orders or banker's
cheques from a banking company to which the Banking Regulation Act,
PAN Rule 114 B
Rule-114B Categories of transactions and/or document where
quoting of PAN made compulsory -----------contd.
• deposit in cash aggregating to Rs.50,000/- or more, with a banking
company to which the Banking Regulation Act, 1949, applies (including
any bank or banking institution referred to in sec. 51 of that Act) during
any one day;
• payment in cash in connection with travel to any foreign country of an
amount exceeding Rs.25,000/- at any one time. Such payment shall
include payment in cash towards fare, or to a travel agent or a tour
operator, or for the purchase of foreign currency. However, travel to
any foreign country does not include travel to the neighbouring
countries or to such places of pilgrimage as may be specified by the
Board under Explanation 3 of section 139(1).
• Making an application to any banking company to which the Banking
Regulation Act, 1949, applies (including any bank or banking institution
referred to in section 51 of that Act) or to any other company or
institution, for issue of a credit card;
• payment of an amount of Rs.50,000/- or more to a Mutual Fund for
purchase of its units
• payment of an amount of Rs.50,000/- or more to a company for
acquiring shares issued by it;
.
P.A.N.
Sec 139A. (5A) Every person receiving any sum or income or
amount from which tax has been deducted under the
provisions of Chapter XVIIB, shall intimate his permanent
account number to the person responsible for deducting such
tax under that Chapter :
Provided further that a person referred to in this sub-section
shall intimate the General Index Register Number till such
time permanent account number is allotted to such person.
(5B) Where any sum or income or amount has been paid after
deducting tax under Chapter XVIIB, every person deducting tax
under that Chapter shall quote the permanent account number
of the person to whom such sum or income or amount has
been paid by him
(i) in the statement furnished in accordance with the provisions
of sub-section (2C) of section 192;
(ii) in all certificates furnished in accordance with the provisions
of section 203;
(iii) in all returns prepared and delivered or caused to be
delivered in accordance with the provisions of section 206 to
.
P.A.N.
Sec 139A. (5B) Where any sum or income ...................
Provided that the Central Government may, by notification in

the Official Gazette, specify different dates from which the
provisions of this sub-section shall apply in respect of any
class or classes of persons:
Provided further that nothing contained in sub-sections
(5A) and (5B) shall apply in case of a person whose
total income is not chargeable to income-tax or who is
not required to obtain permanent account number
under any provision of this Act if such person furnishes to
the person responsible for deducting tax, a declaration
referred to in section 197A in the form and manner
prescribed thereunder to the effect that the tax on his
estimated total income of the previous year in which such
income is to be included in computing his total income will be
nil.
.
P.A.N.
Sec 139A. (5D) Every person collecting tax in accordance with
the provisions of section 206C shall quote the permanent
account number of every buyer or licensee or lessee referred
to in that section
(i) in all certificates furnished in accordance with the provisions
of sub-section (5) of section 206C;
(ii) in all returns prepared and delivered or caused to be
delivered in accordance with the provisions of sub-section (5A)
or sub-section (5B) of section 206C to an income-tax
authority;]
(iii) in all quarterly statements prepared and delivered or
caused to be delivered in accordance with the provisions of
sub-section (3) of section 206C.
(6) Every person receiving any document relating to a
transaction prescribed under clause (c) of sub-section
(5) shall ensure that the Permanent Account Number or
the General Index Register Number has been duly
quoted in the document.
.
P.A.N.
Sec 139A. (7) No person who has already been allotted a
permanent account number under the new series shall apply,
obtain or possess another permanent account number.
Explanation. For the removal of doubts, it is hereby declared
that any person, who has been allotted a permanent account
number under any clause other than clause (iv) of sub-section
(1), shall not be required to obtain another permanent account
number and the permanent account number already allotted to
him shall be deemed to be the permanent account number in
relation to fringe benefit tax.
(8) The Board may make rules providing for
(a) the form and the manner in which an application may
be made for the allotment of a permanent account number and
the particulars which such application shall contain;
(b) the categories of transactions in relation to which
Permanent Account Numbers or the General Index
Register Number shall be quoted by every person in the
documents pertaining to such transactions;
(c) the categories of documents pertaining to business or
.
P.A.N.
Sec 139A. (8) The Board may make rules providing for
(d) class or classes of persons to whom the provisions of
this section shall not apply;
(e) the form and the manner in which the person who has
not been allotted a Permanent Account Number or who
does not have General Index Register Number shall make his
declaration;
(f) the manner in which the Permanent Account Number or the
General Index Register Number shall be quoted in respect of
the categories of transactions referred to in clause (c);
(g) the time and the manner in which the transactions
referred to in clause (c) shall be intimated to the
prescribed authority.
Explanation. For the purposes of this section,
(g)Assessing Officer includes an income-tax authority who
is assigned the duty of allotting permanent account
numbers;
(b) permanent account number means a number which the
.
P.A.N.
Sec 139A. Explanation. For the purposes of this section,
(c)Assessing Officer includes an income-tax authority who

is assigned the duty of allotting permanent account
numbers;
(b) permanent account number means a number which the
Assessing Officer may allot to any person for the purpose of
identification and includes a permanent account number
allotted under the new series;
(c) permanent account number under the new series
means a permanent account number having ten
alphanumeric characters and issued in the form of a
laminated card;
(d) General Index Register Number means a number given by
an Assessing Officer to an assessee in the General Index
Register maintained by him and containing the designation
and particulars of the ward or circle or range of the Assessing
Officer.
.
P.A.N.
CONSEQUENCES OF FAILURE TO COMPLY WITH SEC 139 A
Penalty
Sec 272B. (1) If a person fails to comply with the
provisions of section 139A, the Assessing Officer may
direct that such person shall pay, by way of penalty, a sum of
ten thousand rupees.
(2) If a person who is required to quote his permanent
account number in any document referred to in clause (c) of
sub-section (5) of section 139A, or to intimate such number
as required by sub-section (5A) or sub-section (5C) of that
section, quotes or intimates a number which is false, and
which he either knows or believes to be false or does not
believe to be true, the Assessing Officer may direct that
such person shall pay, by way of penalty, a sum of ten
thousand rupees.
(3) No order under sub-section (1) or sub-section (2) shall be
passed unless the person, on whom the penalty is proposed to
be imposed, is given an opportunity of being heard in the
.
TAX RETURN PREPARER SCHEME
139B.(1) For the purpose of enabling any specified class or
classes of persons in preparing and furnishing returns of income,
the Board may, without prejudice to the provisions of section 139,
frame a Scheme, by notification in the Official Gazette,
providing that such persons may furnish their returns of
income through a Tax Return Preparer authorised to act as
such under the Scheme.
(2) Every Tax Return Preparer shall assist the persons furnishing
the return of income in such manner as may be specified in the
Scheme framed under this section and affix his signature on
such return.
(3) For the purposes of this section,
(a) Tax Return Preparer means any individual, not being a
person referred to in clause (ii) or clause (iii) or clause (iv)
of sub-section (2) of section 288 or an employee of the
specified class or classes of persons, who has been authorised to
act as a Tax Return Preparer under the Scheme framed
under this section;
• specified class or classes of persons means any person,
.
TAX RETURN PREPARER SCHEME
Sec 139B. (4) The Scheme framed by the Board under this section
may provide for the following, namely:
(a) the manner in which and the period for which the Tax Return
Preparers shall be authorised under sub-section (3);
(b)the educational and other qualifications to be possessed, and the
training and other conditions required to be fulfilled, by a person to
act as a Tax Return Preparer;
(c) the code of conduct for the Tax Return Preparers;
(d)the duties and obligations of the Tax Return Preparers;
(e) the circumstances under which the authorisation given to a Tax
Return Preparer may be withdrawn;
(f) any other matter which is required to be, or may be, specified by the
Scheme for the purposes of this section.
(5) The Scheme framed by the Board under this section shall be laid, as
soon as may be after it is framed, before each House of
Parliament, while it is in session, for a total period of thirty
days which may be comprised in one session or in two or more
successive sessions, and if, before the expiry of the session
immediately following the session or the successive sessions aforesaid,
both Houses agree in making any modification in the Scheme or both
Houses agree that the Scheme should not be framed, the Scheme shall
thereafter have effect only in such modified form or be of no effect, as
.
Sec 139 D
Filing of return in electronic form.
Sec 139D. The Board may make rules providing for

(a) the class or classes of persons who shall be required to
furnish the return in electronic form;
(b) the form and the manner in which the return in
electronic form may be furnished;
(c)the documents, statements, receipts, certificates or
audited reports which may not be furnished along with the
return in electronic form but shall be produced before the
Assessing Officer on demand;
(d) the computer resource or the electronic record to which
the return in electronic form may be transmitted.
.
SELF ASSESSMENT
Sec 140A. (1) Where any tax is payable on the basis of any
return required to be furnished under section 115WD or
section 115WH or section 139 or section 142 or section 148 or
section 153A or, as the case may be, section 158BC, after
taking into account,
(i) the amount of tax, if any, already paid under any provision
of this Act;
(ii)any tax deducted or collected at source;
(iii) any relief of tax or deduction of tax claimed under
section 90 or section 91 on account of tax paid in a country
outside India;
(iv) any relief of tax claimed under section 90A on
account of tax paid in any specified territory outside India
referred to in that section; and
(v) any tax credit claimed to be set off in accordance with the
provisions of section 115JAA,
the assessee shall be liable to pay such tax together
with interest payable under any provision of this Act for any
.
SELF ASSESSMENT
Explanation. Where the amount paid by the assessee under
this sub-section falls short of the aggregate of the tax and
interest as aforesaid, the amount so paid shall first be
adjusted towards the interest payable as aforesaid and
the balance, if any, shall be adjusted towards the tax
payable.
(1A) For the purposes of sub-section (1), interest payable,
(i) under section 234A shall be computed on the amount of
the tax on the total income as declared in the return as
reduced by the amount of,
(a) advance tax, if any, paid;
(b) any tax deducted or collected at source;
(c) any relief of tax or deduction of tax claimed under section
90 or section 91 on account of tax paid in a country outside
India;
(d) any relief of tax claimed under section 90A on account of
tax paid in any specified territory outside India referred to in
that section; and
(e) any tax credit claimed to be set off in accordance with the
.
SELF ASSESSMENT
Sec 140A (1B) For the purposes of sub-section (1), interest
payable under section 234B shall be computed on an
amount equal to the assessed tax or, as the case may be, on
the amount by which the advance tax paid falls short of
the assessed tax.
Explanation. For the purposes of this sub-section, assessed tax
means the tax on the total income as declared in the return as
reduced by the amount of,
(i) tax deducted or collected at source, in accordance with the
provisions of Chapter XVII, on any income which is subject to such
deduction or collection and which is taken into account in computing
such total income;
(ii) any relief of tax or deduction of tax claimed under section 90 or
section 91 on account of tax paid in a country outside India;
(iii) any relief of tax claimed under section 90A on account of tax
paid in any specified territory outside India referred to in that section;
and
(iv) any tax credit claimed to be set off in accordance with the
provisions of section 115JAA.
(2) After a regular assessment under section 115WE or
.
SELF ASSESSMENT
Sec 140A (3) If any assessee fails to pay the whole or any
part of such tax or interest or both in accordance with the
provisions of sub-section (1), he shall, without prejudice to any
other consequences which he may incur, be deemed to be an
assessee in default in respect of the tax or interest or both
remaining unpaid, and all the provisions of this Act shall apply
accordingly.
(4) The provisions of this section as they stood immediately
before their amend-ment by the Direct Tax Laws (Amendment)
Act, 1987 (4 of 1988), shall apply to and in relation to any
assessment for the assessment year commencing on the 1st
day of April, 1988, or any earlier assessment year and
references
Even though theinstatute
this section to
uses the wordthe other
‘shall’, provisions
since of this
this is a taxing and Act
shallprovision,
penal be construed
and so a as references
reasonable to those provisions
opportunity of being heard shouldas for
be the
timetobeing
given in force
assessee and applicable
before application of 140A to (3) the
and ifrelevant
the AO is assessment
satisfied
year.
with the explanation of he assessee, it may not be applied. In other words,
AO has the discretion of applying or not applying the subsection.
………….Ramchandra Pesticieds P Ltd v. CIT (2006) 155 Taxman 111
(Kar)
.
Sec 142
Inquiry before assessment.
Sec 142. (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 115WD or section
139 or in whose case the time allowed under sub-section
(1) of section 139 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 or before the end
of the relevant assessment year, 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 :
Provided that where any notice has been served under this sub-section
for the purposes of this clause after the end of the relevant
assessment year commencing on or after the 1st day of April, 1990 to
a person who has not made a return within the time allowed under
sub-section (1) of section 139 or before the end of the relevant
.
Sec 142
Sec 142. (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 115WD or section 139 or in whose case the time
allowed under sub-section (1) of section 139 for furnishing the return
has expired a notice requiring him, on a date to be therein specified,
(i) …………..
(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 liabilities not
included in the accounts ;
(b) the Assessing Officer shall not require the production
.
Sec 142
Sec 142.(2) For the purpose of obtaining full information in respect
of the income or loss of any person, the Assessing Officer may
make such inquiry as he considers necessary.
(2A) If, at any stage of the proceedings before him, the Assessing
Officer, having regard to the nature and complexity of the accounts
of the assessee and the interests of the revenue, is of the opinion
that it is necessary so to do, he may, with the previous approval
of the Chief Commissioner or Commissioner, direct the
assessee to get the accounts audited by an accountant, as
defined in the Explanation below sub-section (2) of section 288,
nominated by the Chief Commissioner or Commissioner in
this behalf and to furnish a report of such audit in the prescribed
form duly signed and verified by such accountant and setting forth
such particulars as may be prescribed and such other particulars as
the Assessing Officer may require :
Provided that the Assessing Officer shall not direct the assessee to get
the accounts so audited unless the assessee has been given a
reasonable opportunity of being heard.
(2B) The provisions of sub-section (2A) shall have effect
notwithstanding that the accounts of the assessee have
been audited under any other law for the time being in force or
.
Sec 142
Sec 142. (2C) Every report under sub-section (2A) shall be
furnished by the assessee to the Assessing Officer within such period
as may be specified by the Assessing Officer :
Provided that the Assessing Officer may, suo motu, or on an
application made in this behalf by the assessee and for any good and
sufficient reason, extend the said period by such further period or
periods as he thinks fit ; so, however, that the aggregate of the
period originally fixed and the period or periods so extended
shall not, in any case, exceed one hundred and eighty days
from the date on which the direction under sub-section (2A) is
received by the assessee.
(2D) The expenses of, and incidental to, any audit under sub-
section (2A) (including the remuneration of the accountant) shall be
determined by the Chief Commissioner or Commissioner (which
determination shall be final) and paid by the assessee and in
default of such payment, shall be recoverable from the
assessee in the manner provided in Chapter XVII-D for the recovery
of arrears of tax :
Provided that where
Rule 14any
B direction for audit under sub-section (2A) is
issued by the Assessing Officer on or after the 1st day of June,
2007, the expenses of, and incidental to, such audit (including the
.
Sec 142  Rule 14B
Guidelines for the purposes of determining expenses for
audit.
Rule 14B. (1) Every Chief Commissioner shall maintain a panel of
accountants, out of the persons referred to in the Explanation to sub-
section (2) of section 288, for the purposes of sub-section (2A) of
section 142.
(2) Where the Assessing Officer directs for audit under sub-section (2A)
of section 142 on or after the 1st day of June, 2007, the expenses of,
and incidental to, audit (including the remuneration of the
Accountant, qualified Assistants, semi-qualified and other
Assistants who may be engaged by such Accountant) shall not
be less than rupees three thousand seven hundred and fifty
and not more than rupees seven thousand and five hundred
for every hour of the period as specified by the Assessing Officer
under sub-section (2C) of section 142.
(3) The period referred to in sub-rule (2) shall be specified in
terms of the number of hours required for completing the
report.
(4) The Accountant referred to in sub-section (2A) of section 142
shall maintain a time-sheet and shall submit it to the Chief
.
Sec 142
Sec 142. (3) The assessee shall, except where the
assessment is made under section 144, be given an
opportunity of being heard in respect of any material
gathered on the basis of any inquiry under sub-section
(2) or any audit under sub-section (2A) and proposed to
be utilised for the purposes of the assessment.
before their amendment by the Direct Tax Laws (Amendment)
assessment for the assessment year commencing on the 1st
day of April, 1988, or any earlier assessment year and
references in this section to the other provisions of this Act
shall be construed as references to those provisions as for the
time being in force and applicable to the relevant assessment
year.
.
Sec 142
GUIDELINES made by Board for selection of cases for Special
Audit
Instruction No 1076 dated 12.7.1977
Regarding Companies: Only those cases where-
(iv)Reports of gross neglect / breach of duty of Principal Officer/
Director
(v)Search & Seizure conducted under I T Act or FERA
(vi)Co Having foreign collaboration
(vii)Co’s principal is a foreign co. & deduction of expenses to Head
Off claimed
(viii)Co has import-export business & t/o of > Rs one crore
(ix)Allegation sof substantial tax evasion
(x)AO has any other information necessitating special audit
Regarding non-Company assessees ……..
The actual selection should be confined for a few carefully

.
Sec 142
SUMMARY OF JUDICIAL PRONOUNCEMENTS ON SPECIAL
AUDIT
Pre-requisites for ordering a Special Audit u/s 142 (2A)
 The AO should form an opinion that the nature of the

accounts of the assessee is complex
 The interest of the revenue will be adversely affected if the
special audit is not directed
 The opinion of the AO should be formed objectively on the
basis of material before him and should be based on
relevant considerations
 The CIT / CCIT should grant approval for special audit after
applying his mind to all he material considered by the AO
and placed by the AO before him
 The guidelines issued by the CBDT vide Instruction No
1076 dated 12.7.1976 are binding on the AO
.
Sec 142
TO FILE If a person required to file a return had failed to
(i file it before the end of relevant AY
) RETURN
To produce
( Accounts ONLY upto 3 years before
NOTI ACCOUNTS /
(1 CE
ii)
DOCUMENTS
relevant PY
) To furnish
(iii Statement of ASSETS & LIABILITIES only
INFORMAT with prior permission of JCIT
)
ION
Se
c (2 ENQUIRIES in respect of income or loss
of any person
14 )(
2 2A)
( prior permission of CIT/CCIT  auditor nominated by CCIT
(
GET Only after giving an opportunity to be heard to assessee
2B)
ACCOUNTS Expense borne by Central Govt after 1.6.07
( AUDITED  Rule 14B  Rs 3750 to 7500 /hour
2C) Period given/extended by AO  upto 180 days
(
2D) OPPORTUNITY OF BEING
(3 HEARD
))
(4 Applicable to prior to 1987 102
)
.
Sec 142
WHAT
HAPPENS IF
Best Judgment
Assessment u/s 144
Penalty u/s 271(1)(b)
 Rs 10,000 for
EACH failure
Best Judgment
Prosecution u/sAssessment
276CC
u/s 144
Penalty u/s 271(1)(b)
 Rs 10,000 for
EACH failure
Prosecution u/s 276D
By AO
Order for special audit
103
becomes void
.
Sec 142
 Can inquiry u/s 142 done after assessment?
 No . It pre-assessment enquiry.............. Amal Kr Ghatak v. ITO
(1971) 79 ITR 452 (Cal)
 Can a reference to t eh valuation cell u/s 55A be made u/s 142) ?
 No …………………………………………..Smt Amiya Bala Paul v. CIT
(2003) 262 ITR 407 (SC)
 Where AO gathers material from records pertaining to an earlier year,
is he bound to give an opportunity to be heard ?
 Yes, as such material is covered u/s 142 (3)………….Ponkummam
Traders v. Additional ITO (1972) 83 ITR 508 (Ker)
 If the notice u/s 142 (1) is accompanied by a letter asking for
information, whether non compliance of that letter amount to non-
compliance u/s 142 (1) ?
 No …………………………………. Calcutta Chromotype P Ltd. V. ITO ,
(1971) 79 ITR 442 (All)
 If the notice u/s 142 (1) called for information part of which was prior to
three years from the relevant PY then will the whole notice become
illegal ?
No. only the part pertaining to information prior to 3 years will be
104
illegal – if it is severable from the other parts ………Murlidhar Madanlal
v. CIT (1954) 26 ITR 231 (Pat)
.
Sec 142
 Who is to decide which books are required to be produced u/s 142 (1)?
 AO is the sole judge.............. Tejmal Bhojraj V. CIT (1952) 22 ITR
208 (Nag)
 Can AO ask for special audit u/s 142 (2A) without looking at the
accounts?
 No. An honest attempt must be made first to understand the
accounts of the assessee ………………………..Swadeshi Cotton Mills Co
Ltd V. CIT (1988) 17 ITR 634 (All)
 Can special audit be asked for in a case where the accounts are
already audited?
 Yes………….Jagjit Sugar Mills Co Ltd. V. CIT (1994) 210 ITR 468
(Punj&Har)
 Can the Commissioner issue an order for the special audit u/s 142(2A)?
 No . An order by CIT does not amount to approval as envisaged in
the statute………………………. Peerless Gen Fin & Inv Co Ltd V. CIT
(1999) 102 Taxman 654 (Cal)
 If the AO makes a proposal to the CIT for appointing an auditor u/s 142
(2A) without sharing any other information related with the case, and if
CIT nominates an auditor for the audit, does it amount to compliance
of sec 142 ? Is the action valid ? 105
No. Approval by the CIT must be specific and given after considering
.
Sec 142
 Would an AO be justified in ordering special audit on the ground that
there were many litigations going between the assessee and the RBI ?
 No . That is an irrelevant consideration.............. Peerless Gen Fin &
Inv Co Ltd V. CIT (1999) 236 ITR 671(Cal)
 Can a special audit be ordered on the ground that the stocks could not
be reconciled by the auditors ?
 No. ………………………..UP State Handloom CorpL td V. CIT (2000)
245 ITR 192 (All)
 Can special audit be asked by AO if the assessee did not respond to his
queries regarding accounts ?
 No That is not a reasonable ground envisaged in sec 142 (2A)………
….Mothoottu Mini Kuries V. Dy CIT (2001) 250 ITR 455 (Ker)
 The order u/s 142 (2A) did not disclose any reason for special audit, nor
did records reveal any application of mind by AO. Subsequently th
eorder u/s 142 (2A) was challenged as being bad in law and it was
submitted by AO that special audit was ordered because of past history
of assessee, the fact that he offered income under VDIS scheme and
had not filed audited accounts as was required u/s 44AB. Was th eorder
of AO ?
 No . Since the reasons / application of mind were not apparent in106 the
order u/s 142 (2A) it is invalid………………………. HP States Forest Corp
.
Sec 142
 Is AO required to provide an opportunity to be heard to the assessee
before ordering a special audit u/s 142 (2A) ?
 YES ……………….Proviso u/s 142 (2A) ……………………….inserted by
Fin Act 2007, wef 1.6.2007 after the judgment in case of UP Fin Corp
V. JCIT (2005) 147 Taxman 21 (All) which held that such an
opportunity was not required as per the statute.
 Can the AO issue a notice u/s 142 (1) calling for a return of income,
after the due date provided in Sec 139 and before the end of the
relevant assessment year?
 Yes………………………..Departmental circular No. 572 dated 3rd
August 1990
 ………. What is the intention behind introduction of words or before the
end of the relevant assessment year by Finance Act 2006 ?
 Clarificatory amendment regarding the time limit for issue of
notice under section 142
The existing provisions contained in sub-section (1) of said section, inter-
alia, provide that for the purposes of making assessment in a case
where a person has not made a return of his income within the time
specified under sub-section (1) of section 139, the Assessing Officer
may serve a notice under the said sub-section on such person requiring
107
him to furnish the return of his income in the prescribed form and
manner.
.
Sec 142
 Would an AO be justified in ordering special audit on the ground that
accounts or documents are voluminous ?
 No . That is not enough to make the accounts complex or justify
special audit.............. Bajrang Textiles V. CIT (2004) 3 SOT 115 (Jodh)
 Can the AO make a reference to an auditor to prepare books of
accounts on the basis of records seized during a search ?
 No. ……………………….. Bajrang Textiles V. CIT (2004) 3 SOT 115
(Jodh)
 Is the audit report u/s 142 (2A) binding on the AO? Can the AO reject
the same without assigning any reason ?
 No. It is NOT binding. However, the AO cannot reject the special
audit report without assigning any reasons………….CIT Vs. Sahara India
Fin Corp Ltd (2004) 135 Taxman 154 (Nag)
 In case an assessee fails to file a return of income, is it mandatory for
the AO to issue a notice u/s 142 (1) ?
 No
 Can a best judgment u/s 144 be completed in a case of non-filing of
return, without issuing a notice u/s 142 (1) for filing of a return u/s 142
(1) (i) ?
108
 Yes. It is not mandatory to issue a notice u/s 142(1) (i) in all cases of
non-filers or a necessary part of assessment u/s 144, but then an
.
Sec 142 A
Estimate by Valuation Officer in certain cases
Sec 142A.(1) For the purposes of making an assessment or
reassessment under this Act, where an estimate of the value of
any investment referred to in section 69 or section 69B or the
value of any bullion, jewellery or other valuable article referred
to in section 69A or section 69B is required to be made, the
Assessing Officer may require the Valuation Officer to
make an estimate of such value and report the same to
him.
(2) The Valuation Officer to whom a reference is made under
sub-section (1) shall, for the purposes of dealing with such
reference, have all the powers that he has under section
38A of the Wealth-tax Act, 1957 (27 of 1957).
(3) On receipt of the report from the Valuation Officer, the
Assessing Officer may, after giving the assessee an
opportunity of being heard, take into account such
report in making such assessment or reassessment:
Provided that nothing contained in this section shall apply in
respect of an assessment made on or before the 30th day
.
Sec 142A
Estimate by Valuation Officer in certain cases
Sec 142A ……………………
Explanation. In this section, Valuation Officer has the same
meaning as in clause (r) of section 2 of the Wealth-tax Act,
1957 (27 of 1957).]
Definition of Valuation Officer in Wealth Tax Act

Sec 2(r) Valuation Officer means a person appointed as a
Valuation Officer under section 12A, and includes a Regional Valuation
Officer, a District Valuation Officer, and an Assistant Valuation Officer .
W T Act  Appointment of Valuation Officers.
Sec 12A. (1) The Central Government may appoint as many Valuation
Officers as it thinks fit.
(2) Subject to the rules and orders of the Central Government regulating the
conditions of service of persons in public services and posts, a wealth-
tax authority may appoint as many overseers, surveyors and
assessors as may be necessary to assist the Valuation Officers in
the performance of their functions.
.
Sec 142A
Wealth Tax Act  Powers of Valuation Officer, etc.
Sec 38A.(1) For the purposes of this Act, a Valuation Officer or any
overseer, surveyor or assessor authorised by him in this behalf may,
subject to any rules made in this behalf and at such reasonable times as
may be prescribed,
(a) enter any land within the limits of the area assigned to the Valuation
Officer, or
(b) enter any land, building or other place belonging to or occupied by
any person in connection with whose assessment a reference has
been made under section 16A to the Valuation Officer, or
(c) inspect any asset in respect of which a reference under section 16A
has been made to the Valuation Officer,
and require any person in charge of, or in occupation or possession
of, such land, building or other place or asset to afford him the
necessary facility to survey or inspect such land, building or other place or
asset or estimate its value or inspect any books of account, document or
record which may be relevant for the valuation of such land, building or
other place or asset and gather other particulars relating to such land,
building or other place or asset:
.
Sec 142A
Sec 38A.(1)…….
Provided that no Valuation Officer, overseer, surveyor or assessor

shall enter any building or place referred to in clause (b), or inspect any
asset referred to in clause (c) (unless with the consent of the person in
charge of, or in occupation or possession of, such building, place or asset)
without previously giving to such person at least two days notice in
writing of his intention to do so.
(2) If a person who, under sub-section (1), is required to afford any facility
to the Valuation Officer or the overseer, surveyor or assessor, either
refuses or evades to afford such facility, the Valuation Officer shall have all
the powers under sub-sections (1) and (2) of section 37 for enforcing
compliance of the requirements made.
.
Sec 142A
Sec 37 (1) The Assessing Officer, Valuation Officer, Deputy

Commissioner (Appeals), Commissioner (Appeals), Chief
Commissioner or Commissioner and the Appellate Tribunal shall, for
the purposes of this Act, have the same powers as are vested in a
court under the Code of Civil Procedure,1908 (5 of 1908), when
trying a suit in respect of the following matters, namely:
(a) discovery and inspection;
(b) enforcing the attendance of any person, including any
officer of a banking company and examining him on oath;
(c) compelling the production of books of account and other
documents; and
(d) issuing commissions.
.
Sec 143
Sec 143. (1) Where a return has been made under section 139,
such return shall be processed in the following manner,
namely:
(a) the total income or loss shall be computed after making the
following adjustments, namely:
(i) any arithmetical error in the return; or
(ii) an incorrect claim, if such incorrect claim is apparent
from any information in the return;
(b) the tax and interest, if any, shall be computed on the
basis of the total income computed under clause (a);
(c) the sum payable by, or the amount of refund due to,
the assessee shall be determined after adjustment of the
tax and interest, if any, computed under clause (b) by any tax
deducted at source, any tax collected at source, any advance
tax paid, any relief allowable under an agreement under
section 90 or section 90A, or any relief allowable under section
91, any rebate allowable under Part A of Chapter VIII, any tax
.
Sec 143
Sec 143. (1) Where a return has been made under section 139,
such return shall be processed in the following manner,
namely:
(d) an intimation shall be prepared or generated and sent to

the assessee specifying the sum determined to be payable by,
or the amount of refund due to, the assessee under clause (c);
and
(e) the amount of refund due to the assessee in pursuance of the
determination under clause (c) shall be granted to the
assessee:
Provided that an intimation shall also be sent to the assessee
in a case where the loss declared in the return by the
assessee is adjusted but no tax or interest is payable by, or
no refund is due to, him:
Provided further that no intimation under this sub-section shall
.
Sec 143
Sec 143. (1) Where a return has been made under section 139, or in response
to a notice under sub-section (1) of section 142, such return shall be
processed in the following manner, namely:
Explanation. For the purposes of this sub-section,

(a) an incorrect claim apparent from any information in the
return shall mean a claim, on the basis of an entry, in the
return,
(i) of an item, which is inconsistent with another entry of
the same or some other item in such return;
(ii) in respect of which the information required to be
furnished under this Act to substantiate such entry has not
been so furnished; or
(iii) in respect of a deduction, where such deduction exceeds
specified statutory limit which may have been expressed as
monetary amount or percentage or ratio or fraction;
(b) the acknowledgement of the return shall be deemed to be
the intimation in a case where no sum is payable by, or
.
Sec 143
Sec 143. (1A) For the purposes of processing of returns under
sub-section (1), the Board may make a scheme for
centralised processing of returns with a view to
expeditiously determining the tax payable by, or the refund
due to, the assessee as required under the said sub-section.
(1B) Save as otherwise expressly provided, for the purpose of
giving effect to the scheme made under sub-section (1A), the
Central Government may, by notification in the Official
Gazette, direct that any of the provisions of this Act
relating to processing of returns shall not apply or shall
apply with such exceptions, modifications and
adaptations as may be specified in that notification; so,
however, that no direction shall be issued after the 31st day of
March, 2009.
(1C) Every notification issued under sub-section (1B), along
with the scheme made under sub-section (1A), shall, as soon as
may be after the notification is issued, be laid before each
House of Parliament.
.
Sec 143
Sec 143. (2) Where a return has been furnished under section 139,
or in response to a notice under sub-section (1) of section 142, the
Assessing Officer shall,
(i) where he has reason to believe that any claim of loss,
exemption, deduction, allowance or relief made in the
return is inadmissible, serve on the assessee a notice
specifying particulars of such claim of loss, exemption,
deduction, allowance or relief and require him, on a date to
be specified therein to produce, or cause to be produced,
any evidence or particulars specified therein or on which
the assessee may rely, in support of such claim:
Provided that no notice under this clause shall be served on
the assessee on or after the 1st day of June, 2003;
(ii) notwithstanding anything contained in clause (i), if he considers
it necessary or expedient to ensure that the assessee has
not understated the income or has not computed excessive
loss or has not under-paid the tax in any manner, serve on
the assessee a notice requiring him, on a date to be specified
therein, either to attend his office or to produce, or cause to
be produced, any evidence on which the assessee may rely
.
Sec 143
Sec 143. (3) On the day specified in the notice,
(i) issued under clause (i) of sub-section (2), or as soon afterwards
as may be, after hearing such evidence and after taking into
account such particulars as the assessee may produce, the
Assessing Officer shall, by an order in writing, allow or reject
the claim or claims specified in such notice and make an
assessment determining the total income or loss accordingly,
and determine the sum payable by the assessee on the basis of
such assessment;
(ii) issued under clause (ii) of sub-section (2), or as soon
afterwards as may be, after hearing such evidence as
the assessee may produce and such other evidence as
the Assessing Officer may require on specified points,
and after taking into account all relevant material which
he has gathered, the Assessing Officer shall, by an order in
writing, make an assessment of the total income or loss
of the assessee, and determine the sum payable by him or
refund of any amount due to him on the basis of such
assessment:
.
Sec 143
Sec 143. (3) ..........
Provided that in the case of a (a) scientific research association
referred to in clause (21) of section 10; (b) news agency referred to in
clause (22B) of section 10; (c) association or institution referred to in
clause (23A) of section 10; (d) institution referred to in clause (23B) of
section 10; (e) fund or institution referred to in sub-clause (iv) or trust
or institution referred to in sub-clause (v) or any university or other
educational institution referred to in sub-clause (vi) or any hospital or
other medical institution referred to in sub-clause (via) of clause (23C)
of section 10, which is required to furnish the return of income
under sub-section (4C) of section 139, no order making an
assessment of the total income or loss of such scientific research
association, news agency, association or institution or fund or trust or
university or other educational institution or any hospital or other
medical institution, shall be made by the Assessing Officer, without
giving effect to the provisions of section 10,
unless (i) the Assessing Officer has intimated the Central
Government or the prescribed authority the contravention of
the provisions of clause (21) or clause (22B) or clause (23A) or
clause (23B) or sub-clause (iv) or sub-clause (v) or sub-clause (vi) or
sub-clause (via) of clause (23C) of section 10, as the case may be, by
.
Sec 143
Sec 143. (3) ..........
Provided…………….
(ii) the approval granted to such scientific research association or
other association or fund or trust or institution or university or other
educational institution or hospital or other medical institution has
been withdrawn or notification issued in respect of such news
agency or fund or trust or institution has been rescinded :
Provided further that where the Assessing Officer is satisfied that
the activities of the university, college or other institution referred to
in clause (ii) and clause (iii) of sub-section (1) of section 35 are
not being carried out in accordance with all or any of the
conditions subject to which such university, college or other
institution was approved, he may, after giving a reasonable
opportunity of showing cause against the proposed withdrawal
to the concerned university, college or other institution, recommend
to the Central Government to withdraw the approval and that
Government may by order, withdraw the approval and forward a
copy of the order to the concerned university, college or other
institution and the Assessing Officer.
.
Sec 143
Sec 143. (4) Where a regular assessment under sub-section
(3) of this section or section 144 is made,
(a) any tax or interest paid by the assessee under sub-section
(1) shall be deemed to have been paid towards such regular
assessment ;
(b) if no refund is due on regular assessment or the amount
refunded under sub-section (1) exceeds the amount
refundable on regular assessment, the whole or the
excess amount so refunded shall be deemed to be tax
payable by the assessee and the provisions of this Act shall
apply accordingly.
.
Sec 143
ADJUSTME ARITHMETIC ERRORS
(a) INCORRECT CLAIM APPARENT FROM
NTS
TAX & INFORMATION IN RETURN
(b) TOTAL INCOME
INTEREST
(1 Sum payable by / Refund due
(c)
to Assessee
) INTIMATI
(d)
ON Sent to the assessee
Se (e) REFUND
c PROVIS
INTIMATION SENT IN CASE OF ADJUSTMENT OF LOSS
O 1
14 PROVIS NO INTIMATION AFTER THE END OF ONE YEAR FROM
O 2
3 END OF F.Y. IN WHICH RETURN WAS FILED
(a
(i) INCONSISTENT ENTRIES IN R/I
)
(ii) INFORMATION REQUIRED NOT FURNISHED
(iii) DEDUCTION EXCEEDS STATUTORY LIMIT
(b If no adjustment
)  ACKNOWLEDGEMENT  DEEMED INTIMATION
123
.
Sec 143
(1
)
Se CENTRALIS
(
1A) Board  Power for making a SCHEME for Centralised processing
c ED
(
PROCESSIN Central Govt  Notification IF any provisions of Act will Not apply
14 G OF
1B)
( Notification to be laid before the parliament
3 RETURNS
1C)
124
.
Sec 143
(1
)
Se
c
14 IF AO CONSIDERS IT NECESSARY / EXPEDIENT TO ENSURE
THAT ASSESSEE HAS NOT UNDERSTATED HIS INCOME/
3 (2 NOTIC COMPUTED EXCESSIVE LOSSES/ /PRODUCE
UNDERPAID/ CAUSE
TAXES
TO ATTEND HIS OFFICE
E
) TO BE PRODUCED
ANY EVIDENCE ON WHICH HE MAY WISH TO
OF TOTAL
RELY INCOME & DETERMINATION OF SUM
IN SUPPORT
(3 ASSESSME PAYABLE or REFUND DUE TO ASSESSEE  by
) NT ORDER IN WRITING
After HEARING EVIDENCE THAT ASSESSEE MAY
PRODUCE / AO MAY REQUIRE & TAKING INTO
ACCCOUNT
TAXES DEDUCTED PAID ALL RELEVANT
TO BE TAKEN MATERIAL
(4
INTO ACCOUNT 125
)
.
Sec 143
 What should the AO do if due to some reason he is not able to adhere
to the schedule of hearing for which a notice is already issued ?
 The assessee should be informed in advance either through a
letter or through telephone, wherever possible
........ Instruction No. 1395 (F. No 201/28/81-ITA-II) dt 15.5.81 (114th Report (82-
83) of the PAC, p-16-17)
 Can an AO fix the hearing in case of many assessees at the same time?
 No. AO should give each assessee a different time …………………
……………………… Circular No 230 dt 27.10.77 ( F No 225/109/77-ITA-II)
 If during the hearing the AO comes to observe a relief or claim or
deduction that the assessee was entitled to but has not claimed, can
the AO advice the assessee to claim it?
 Yes. Officers of the Deptt must not take advantage of the
ignorance of the assessee. Although the responsibility of claiming
refunds or reliefs rest with the assessee, the officers of the Department
should (i) draw their attention to any refund or relief to which they
appear to be clearly entitled & (ii) freely advise, when approached
by them, about their rights and liabilities, and as to the procedure to
be adopted for claiming such refunds and reliefs.
………….Circular No 14 (XL-35) dt 11.4.55 126
.
Sec 143
 What is expected from the AO in an assessment?
 Except that he should give precedence to the cases which are
likely to yield more revenue, the AO should not be obsessed with
budget figures. He has certain judgments to complete in an year and
his merit will be judged by the way in which he completes those cases
and not by the extent to which he has collected his budget estimate.
........ Instruction No. 3 of 1942 dt 16.1.42
The assessment has to be made in a reasonable & fair manner after
taking into account all relevant circumstances of the case. Even when
the assessment has to be made ex-parte, the information available
should be reasonably weighed and a proper estimate made in the
exercise of best judgment in the circumstances.
……….Instruction No 574 dt 27.7.73 (193rd Report (83-84) of the PAC, p-26-
27)
 Can the AO call for an affidavit?
 Unless there is some material basis for suspicion, affidavits sworn
or affirmed before a magistrate should not be called for.
........ Instruction No. 3 of 1942 dt 16.1.42
 Is a notice of demand of tax payable on the basis of assessment valid if
not accompanied with a copy of the assessment order? 127
 No. As per the Board’s circular No 10D, C No 9(22)-IT/47 dt
.
Sec 143
 Can the assessee ask for an adjournment at the last minute ? Can the
request of assessee for grant of an adjournment be refused by the AO?
 Where the assessee has already taken one adjournment but
desires another adjournment, the assessee should make the request
for adjournment well in advance so as to enable him, in case of a
refusal, to be prepared to proceed on the appointed day.
........ CIT V. Laxmi Narayan Badridas (1937) 5 ITR 170 (PC)
 Will every minor error vitiate the assessment proceeding?
No. An assessment proceeding does not cease to be a proceeding
under the Act merely by reason of a want of notice. It will be a
proceeding liable to be challenged and corrected. ……………….Estate of
Late Ranglal Jajodia V. CIT (1971) 79 ITR 505 (SC)
 Will an error in the name of the assessee vitiate the assessment
proceeding?
 No ……………….Estate of Late Ranglal Jajodia V. CIT (1971) 79 ITR
505 (SC)
 What is the relevance of admission of addition by the assessee?

 Assessment is to be made not solely on the basis of admission of
a person. A proper order of assessment should be made on the basis 128of
all facts a& circumstances and on a correct application of the relevant
.
Sec 143
 Should the AO always “err on the side of the revenue”?
 The AO exercises quais-judicial powers and in doing do they must
act in a fair manner and not in a partisan manner. Although it is their
duty to ensure that no tax which is legitimately due remains
uncovered, they must also not act in a manner that might indicate that
the scales are weighed against the assessee.
........ CIT V. Simon Carves Ltd (1976) 105 ITR 212 (SC)
 Can the AO reject the information provided in return or the evidence
given in assessment?
Yes. It is an inherent power of AO. ……………….Bombay Hardware
Syndicate V. CIT (1973) 92 ITR 160 (Mad)
 While exercising a power vested in him, if the AO refers to a wrong
section, then will the action taken be void ?
 No. Where the power to proceed is actually there, the mere
reference to a wrong section will not vitiate the action taken ………….
Isha Beevi V. TRO (1975) 101 ITR 449 (SC)
 For a return of income for AY 2005-06, filed on 31.3.07 – if the law was
amended w.e.f. 1.4.06, will the amended provisions apply ?
 No. The law as it rules during the AY will apply…….Reliance Jute 129
& Industries Ltd V. CIT (1979) 20 ITR 921 (SC)
.
Sec 143
 Is an assessment u/s 143(3) valid if the return filed was not signed ?
 No. Assessment based on an invalid return is invalid & liable to be
cancelled.
........ CIT V. Krishan Lal Goyal (1984) 148 ITR 283 (Punj & Har)
 The AO made an addition during the assessment wherein he relied on a
provision of the IT Act which was subsequently held as ultra-vires to
the constitution. Will the assessment order is also null & void ?
No. If the machinery provision used for assessment is valid ……………
….Raleigh Investment Co. V. Governor General in Council (1947) 15
ITR 332 (PC)
 The assessee is having a dispute with a third party on certain income.
Should the AO necessarily wait till the litigation is decided before
passing the assessment order ?
 No. Income-tax assessment has to made every year and cannot
be held up until the final result of a legal proceeding which may pass
through several courts………….CIT V. H Hirjee (1953) 23 ITR 427 (SC)
 What if the AO does not sign the assessment order?
 Invalid order …….Kalyan kumar Roy V. CIT (1996) 219 ITR 214
(SC)
 What if the AO does not state the computation of tax in the assessment
130
order, but such computation was given in the demand notice sent
.
Sec 143
 Does the Evidence Act apply in case of assessment ?
 Though the provisions of the Evidence Act do not apply to
assessment proceeding, when the authorities are called upon to
consider the effects of a document, the general provisions embodied in
Sec 91, 92 & 94 of Evidence Act will apply.
........ AVN Jagga Row V. CIT (1987) 166 ITR 862 (AP)
Evidence Act, 1872

Sec 91. Evidence of terms of contracts, grant and other dispositions of
property reduced to form of document - When the terms of a contract, or of a
grant, or of any other disposition of property have been reduced to the form of a
document, and in all cases in which any matter is required by law to be reduced to
the form of a document, no evidence shall be given in proof of the terms of such
contract, grant or other disposition of property, or of such matter, except the
document itself, or secondary evidence of its contents in cases in which secondary
evidence is admissible under the provisions herein before contained.
131
.
Sec 143
Evidence Act, 1872
92. Exclusion of evidence or oral agreement - When the terms of any such
contract, grant or other disposition of property, or any matter required by law to be
reduced to the form of a document have been proved according to the last
section, no evidence of any oral agreement or statement shall be admitted, as
between the parties to any such instrument or their representatives in interest, for
the purpose of contradicting, varying adding to, or subtracting from, its term:
Proviso (1) - Any fact may be proved which would invalidate any document, or
which would entitle any person to any decree or order relating thereto, such as
fraud, intimidation, illegality, want for due execution, want of capacity in any
contracting party, want or failure of consideration, or a mistake in fact or law.
Proviso (2) - The existence of any separate oral agreements to matter on which
a document is silent, and which is not inconsistent with its terms, may be proved.
In considering whether or not this proviso applies, the Court shall have regard to the
degree of formality of the document.
Proviso (3) - The existence of any separate oral agreement, constituting, a
condition precedent to the attaching of any obligation under any such contract,
grant or disposition of property, may be proved.
132
.
Sec 143
Evidence Act, 1872
92. Exclusion of evidence or oral agreement
Proviso (4) - The existence of any separate oral agreement, constituting, a
condition precedent to the attaching of any obligation under any such contract,
grant or disposition of property, may be proved, except in cases in which such
contract, grant or disposition of property, is by law required to be in writing, or has
been registered according to the law in force for the time being as to the registration
of documents.
Proviso (5) - Any usage or custom by which incidents not expressly mentioned
in any contract are usually annexed to contracts of that description may be proved.
Provided that the annexing of such incident would not be repugnant to, or inconsistent
with, the express terms of the contract.
Proviso (6) - Any fact may be proved which shows in what manner the language of
a document is related to existing facts.
Sec 94. Exclusion of evidence against application of document of existing facts
- When language used in a document is plain in itself, and when it applies
accurately to existing facts, evidence may not be given to show that it was not
meant to apply to such facts. 133
.
Sec 143
 Can the AO take circumstantial evidence into account ?
 In case of the circumstantial evidence, the totality of circumstances
has got to be taken into account, and the combined effect of all the
circumstances is determinative of the question as to whether or not a
particular fact is proved.
........ CIT V. Rameshwar Prasad Bagla (1968) 68 ITR 653 (All)
 Can the AO reject affidavits filed by the Assessee ?
It cannot be rejected straightaway on the ground that no material
evidence is filed to prove. Rejection of an affidavit is not justified
unless the assessee is either cross-examined or called upon to produce
documentary evidence in support of the affidavit sworn by him ………
……….L Sohan Lal Gupta V. CIT (1958) 33 ITR 786 (All)
 Can the AO reject the documents filed by the assessee as evidence –

on what ground ?
 Yes. The AO can look into the genuineness & validity of
documents filed by assessee and reject them if not found to be not
genuine or valid ………….ITO V. K Jayaraman (1987) 168 ITR 757 (Mad)
 The taxing authorities are not required to put up blinkers while
looking at the documents produced before them. They are entitled 134 to
look into the surrounding circumstances to find out th ereality of the
.
Sec 143
 Assessee objected to the use of some material by the AO on the
ground that it was an evidence not admissible in the court of law and
the AO has powers of a civil court  Is the objection valid?
 Proceedings under the IT Act are not judicial proceedings. AO is NOT
fettered with or bound by technical rules about evidence contained in
the Indian Evidence Act, and he is entitled to act onmaterial which may
not be acceptable as evidence in a court of law.
........ Dhankesari Cotton Mills V. CIT (1954) 26 ITR 775 (SC)
 This does not mean that when the taxing authorities are desirous of
invoking the provisions of Evidence Act, they are prevented from doing
so
........ Chuharmal V. CIT 172 ITR 250,255 (SC)
 The assessment of income is made on the basis of inference on
evidence which in criminal or civil justice may be insufficient
........ Debi Burman V. CIT Tax LR 452, 456-57 (Cal)
 Assessee filed an affidavit from a third party confirming that a
particular transaction challenged my AO did take place. Can the AO
reject the affidavit ?
 A declaration in an affidavit cannot be rejected in the absence of any
evidence to show that the declaration was bogus and unreliable ………
……….Lakshmi Narayan Gadodia & Co (1943) 91 ITR 18 (SC) 135
 Onus on AO to show that it is unreliable  Material to support
.
Sec 143
 On whom lies the burden of proof in the assessment proceedings ?
 For establishing that statement or information filed in return is not
correct ?
 On AO. He can establish this by showing that (e.g…)
 information given by assessee in return is not consistent with other
information, documents, accounts, explanations, evidence provided by
him
 Information given by assessee is false as established from other
material on record which assessee was confronted with, but could not
explain satisfactorily
 Failure of the assessee to provide any documentary support of claims
made by him & failure to offer any acceptable explanation for such a
failure
 Information or explanation provided by assessee proves that his
returned income is not computed as per law
 Circumstantial evidence on record, after taking explanation or
objections of assessee into consideration establishes that his returned
income is not correct
 The income returned is not in conformity with the books of accounts,
and no acceptable explanation is offered by the assessee
 The books of accounts are rejected after taking into consideration 136
whatever the assesee has to offer as explanation or evidence
.
Sec 143
 On whom lies the burden of proof in the assessment proceedings ?
 For establishing that statement or information filed in return is correct
?
 On assessee. He can establish this by (e.g…)
 Providing details, documents, information required by AO
 Confirmation of certain transactions from third parties
 Explanations about missing information / documents
 Showing link between income returned and books of acounts
 For establishing that an explanation submitted by the assessee is not

acceptable?
 On AO. He can establish this by (e.g…)
 SPEAKING ORDER  detailing the reasons , i.e.. Material and logic
because of which the explanation submitted by the assessee is not
acceptable
 For establishing that a document submitted by the assessee is not

reliable?
 On AO. He can establish this by (e.g…)
 SPEAKING ORDER  detailing the reasons , i.e.. Material and logic 137
because of which the document submitted by the assessee is not
reliable
.
Sec 143
 Can the AO take into account the statement of a third party?
 Yes. But only after giving the assessee an opportunity of cross
examining the third party . The cross-examination of the third party by
the assessee should be recorded and kept on record, and due
consideration must be given to any inconsistencies arising out of such
cross-examination.
……………….State of Kerala V. KT Shaduli Yusuf (1977) 39 ST 478 (SC)
 If the AO does not mention the reasons for making an addition, is the
order valid ?
It is INVALID liable to be quashed……………….Mahindra & Mahindra V.
UOI (AIR) (1979) SC 798, 823; CIT V. Sunderlal (1974) 96 ITR 310
 Can the AO rely on evidence that has never been brought to the notice
of the assessee?
 No. It will violate the principles of natural justice. …………. MO
Thomakutty V. CIT (1958) 34 IR 501 (Ker)
 Opportunity to assessee to rebut material is essential………….
Ponkunnam Traders V. Addl ITO (1972) 83 ITR 508 (Ker)
138
 Can the AO make an addition on the ground that the assessee has
been evading taxes in earlier years?
.
Sec 143
Time limit for completion of assessments and reassessments.
Sec 153. (1) No order of assessment shall be made under
section 143 or section 144 at any time after the expiry of
(a) two years from the end of the assessment year in which
the income was first assessable ; or (b) one year from the end
of the financial year in which a return or a revised return relating to
the assessment year commencing on the 1st day of April,
1988, or any earlier assessment year, is filed under sub-
section (4) or sub-section (5) of section 139, whichever is later :
Provided that in case the assessment year in which the income
was first assessable is the assessment year commencing on the
1st day of April, 2004 or any subsequent assessment year,
the provisions of clause (a) shall have effect as if for the words
two years, the words twenty-one months had been
substituted :
Provided further that in case the assessment year in which the income
was first assessable is the assessment year commencing on the 1st day
of April, 2005 or any subsequent assessment year and during the
course of the proceeding for the assessment of total income, a reference
under sub-section
REFERENCE (1) of section
TO TRANSFER 92CA
PRICING (i) was made before the 1st
OFFICER
day of June, 2007 but an order under sub-section (3) of that
.
Sec 143
FILING OF RETURN
139 (4) /
139 (1) AY 2009-10 (5)
31.7. 1.4. 31.3. 31.12

09 10 FY 2 010 -1111 FY 20 10.11
-11
AY 2 00 9-10
1.4. 31.3. 30.9. 1.4. 30.9. 31.3.
09 10 10 11 11 T 12
I
M
E
Notice u/s 143 (2)
L
Notice u/s 142 (1) (ii)/ (iii) I
M
ORDER u/s 143 (3) / 144 I
T
140
.
Sec 144
Best judgment assessment
Sec 144 (1) If any person
(a) fails to make the return required under sub-section
(1) of section 139 and has not made a return or a revised
return under sub-section (4) or sub-section (5) of that
section, or
(b) fails to comply with all the terms of a notice issued
under sub-section (1) of section 142 or fails to comply with
a direction issued under sub-section (2A) of that section, or
(c) having made a return, fails to comply with all the
terms of a notice issued under sub-section (2) of section
143,
the Assessing Officer, after taking into account all relevant
material which the Assessing Officer has gathered, shall, after
giving the assessee an opportunity of being heard,
make the assessment of the total income or loss to the
best of his judgment and determine the sum payable by
.
Sec 144
Best judgment assessment
Sec 144 ……….
Provided that such opportunity shall be given by the
Assessing Officer by serving a notice calling upon the
assessee to show cause, on a date and time to be
specified in the notice, why the assessment should not
be completed to the best of his judgment :
Provided further that it shall not be necessary to give such
opportunity in a case where a notice under sub-section (1)
of section 142 has been issued prior to the making of an
assessment under this section.
before their amendment by the Direct Tax Laws (Amendment)
assessment for the assessment year commencing on the
1st day of April, 1988, or any earlier assessment year
and references in this section to the other provisions of this Act
shall be construed as references to those provisions as for the
.
Sec 144
 When the assessee does not comply with notices u/s 142(1) & / or
143(2) and there is very little information available what should the AO
do? Should he go for over assessment to protect the interest of
revenue ? Can overassessment give rise to any problem ?
 Difficult choice between protecting interest of revenue & creating
uncollectible demand
 Over pitched assessments should be avoided.
They throw up a host of problems like inflation of demand and
generation of unnecessary and unproductive work. The necessity of
curbing the tendency on the part of AOs to make high pitched
assessments and raise heavy uncollectibel demands has been
emphasised by the Board from time to time. Despite these instructions,
the tendency has not been checkmated. The Board therefore desires
that such AOs Should avoid making such type of assessments.
........ Instruction No. 767, dated 4.10.74
 Can an order u/s 144 be passed in a case where fails to comply with
summons issued to him?
No. There has a specific non-compliance as provided in Sec 144 (1)
clause (a), 9b) or (c)……………….Mohini Debi Malpani V. ITO [1970]77
itr 674 (Cal) 143
.
Sec 144
 Can an order u/s 144 be passed where the assessee has filed a return
with all columns blank ?
 yes. In such a case assessee will be treated as having failed to file
a return of income. Hence order u/s 144 can be passed.
........ Ramchand Dhunichand of Guru Bazar V. CIT 3 ITC 69 (Lahore)
 Can the AO resort to Sec 144 where the assessee has filed a return on
the basis of approximate figures without any further details?
Yes. . ……………….A R A N Chettiar Firm V. CIT 2 ITC 477 (Rangoon)
 If the AO wants to apply comparable ratios for passing an order u/s

144, is he required to give a further opportunity to the assessee of
being heard in this matter ?
 Yes………….K Baliah V. CIT (1965) 56 ITR 182 (Mys)
 What are the precautions to take while making order u/s 144?
 rely on available material to the extent possible …………..State of
Kerala V C Velakutty (1966) 60 ITR 239 (SC)
 estimate must be honest and fair ……………..Brij Bhushan Lal
Parduman Kumar V. CIT (1978) 115 ITR 524 (SC)
144
 action must not be dishonest, vindictive or capricious……….CIT V.
Laxminanrayan Badridas (1937) 5 ITR 170 (PC)
.
Sec 144A
Power of Joint Commissioner to issue directions in certain
cases
Sec 144A A Joint Commissioner may, on his own motion or
on a reference being made to him by the Assessing
Officer or on the application of an assessee, call for and
examine the record of any proceeding in which an
assessment is pending and, if he considers that, having
regard to the nature of the case or the amount involved or for
any other reason, it is necessary or expedient so to do, he
may issue such directions as he thinks fit for the
guidance of the Assessing Officer to enable him to
complete the assessment and such directions shall be
binding on the Assessing Officer :
Provided that no directions which are prejudicial to the assessee
shall be issued before an opportunity is given to the
assessee to be heard.
Explanation. For the purposes of this section no direction as to
the lines on which an investigation connected with the
.
Sec 147
Income escaping assessment
Sec 147. If the Assessing Officer has reason to believe
that any income chargeable to tax has escaped
assessment for any assessment year, he may, subject to
the provisions of sections 148 to 153, assess or reassess
such income and also any other income chargeable to
tax which has escaped assessment and which comes to
his notice subsequently in the course of the proceedings
under this section, or recompute the loss or the depreciation
allowance or any other allowance, as the case may be, for the
assessment year concerned (hereafter in this section and in
sections 148 to 153 referred to as the relevant assessment
year) :
Provided that where an assessment under sub-section (3)
of section 143 or this section has been made for the
relevant assessment year, no action shall be taken under
this section after the expiry of four years from the end
of the relevant assessment year, unless any income
chargeable to tax has escaped assessment for such assessment
.
Sec 147
Sec 147.
Provided further that the Assessing Officer may assess or
reassess such income, other than the income involving
matters which are the subject-matter of any appeal,
reference or revision, which is chargeable to tax and has
escaped assessment.
Explanation 1. Production before the Assessing Officer of
account books or other evidence from which material
evidence could with due diligence have been discovered by the
Assessing Officer will not necessarily amount to disclosure
within the meaning of the foregoing proviso.
Explanation 2. For the purposes of this section, the following
shall also be deemed to be cases where income
chargeable to tax has escaped assessment, namely :
• where no return of income has been furnished by the
assessee although his total income or the total income of any
other person in respect of which he is assessable under this Act
during the previous year exceeded the maximum amount
.
Sec 147
Sec 147.
(b) where a return of income has been furnished by the
assessee but no assessment has been made and it is noticed
by the Assessing Officer that the assessee has
understated the income or has claimed excessive loss,
deduction, allowance or relief in the return ;
(c)where an assessment has been made, but
(i) income chargeable to tax has been underassessed ;
or
(ii) such income has been assessed at too low a rate ; or
(iii) such income has been made the subject of excessive
relief under this Act; or
(iv) excessive loss or depreciation allowance or any
other allowance under this Act has been computed.
.
Sec 148
Sec 148.(1) Before making the assessment, reassessment or
recomputation under section 147, the Assessing Officer
shall serve on the assessee a notice requiring him to furnish
within such period, as may be specified in the notice, a
return of his income or the income of any other person in
respect of which he is assessable under this Act during the
previous year corresponding to the relevant assessment year, in
the prescribed form and verified in the prescribed manner and
setting forth such other particulars as may be prescribed; and the
provisions of this Act shall, so far as may be, apply accordingly
as if such return were a return required to be furnished
under section 139 :
Provided that in a case
(a)where a return has been furnished during the period
commencing on the 1st day of October, 1991 and ending on the
30th day of September, 2005 in response to a notice served under
this section, and
(b)subsequently a notice has been served under sub-section (2)
of section 143 after the expiry of twelve months specified
in the proviso to sub-section (2) of section 143, as it stood
immediately before the amendment of said sub-section by
.
Sec 148
Sec 148…..
Provided further that in a case
(a) where a return has been furnished during the period
commencing on the 1st day of October, 1991 and ending
on the 30th day of September, 2005, in response to a
notice served under this section, and
(b) subsequently a notice has been served under clause (ii)
of sub-section (2) of section 143 after the expiry of
twelve months specified in the proviso to clause (ii) of sub-
section (2) of section 143, but before the expiry of the time
limit for making the assessment, reassessment or
recomputation as specified in sub-section (2) of section 153,
every such notice referred to in this clause shall be
deemed to be a valid notice.
Explanation. For the removal of doubts, it is hereby declared
that nothing contained in the first proviso or the second
proviso shall apply to any return which has been
furnished on or after the 1st day of October, 2005 in
.
Sec 149
Time limit for notice
Sec 149. (1) No notice under section 148 shall be issued for
the relevant assessment year,
(a) if four years have elapsed from the end of the relevant
assessment year, unless the case falls under clause (b);
(b) if four years, but not more than six years, have
elapsed from the end of the relevant assessment year unless
the income chargeable to tax which has escaped
assessment amounts to or is likely to amount to one lakh
rupees or more for that year.
Explanation. In determining income chargeable to tax which has
escaped assessment for the purposes of this sub-section, the
provisions of Explanation 2 of section 147 shall apply as
they apply for the purposes of that section.
(2) The provisions of sub-section (1) as to the issue of notice

shall be subject to the provisions of section 151.
.
Sec 149
Time limit for notice
Sec 149. (3) If the person on whom a notice under section

148 is to be served is a person treated as the agent of a
non-resident under section 163 and the assessment,
reassessment or recomputation to be made in pursuance
of the notice is to be made on him as the agent of such non-
resident, the notice shall not be issued after the expiry
of a period of two years from the end of the relevant
assessment year.
.
Sec 150
Provision for cases where assessment is in pursuance of an order on
appeal, etc.
Sec 150. (1) Notwithstanding anything contained in section

149, the notice under section 148 may be issued at any
time for the purpose of making an assessment or
reassessment or recomputation in consequence of or to
give effect to any finding or direction contained in an
order passed by any authority in any proceeding under
this Act by way of appeal, reference or revision or by a
Court in any proceeding under any other law.
(2) The provisions of sub-section (1) shall not apply in any
case where any such assessment, reassessment or
recomputation as is referred to in that sub-section relates to
an assessment year in respect of which an assessment,
reassessment or recomputation could not have been made at
the time the order which was the subject-matter of the
appeal, reference or revision, as the case may be, was made
by reason of any other provision limiting the time
.
Sec 151
Sanction for issue of notice
Sec 151. (1) In a case where an assessment under sub-section
(3) of section 143 or section 147 has been made for the
relevant assessment year, no notice shall be issued under
section 148 by an Assessing Officer, who is below the rank of
Assistant Commissioner or Deputy Commissioner, unless the
Joint Commissioner is satisfied on the reasons recorded
by such Assessing Officer that it is a fit case for the issue of
such notice :
Provided that, after the expiry of four years from the end of the
relevant assessment year, no such notice shall be issued
unless the Chief Commissioner or Commissioner is
satisfied, on the reasons recorded by the Assessing Officer
aforesaid, that it is a fit case for the issue of such notice.
(2) In a case other than a case falling under sub-section (1),
no notice shall be issued under section 148 by an Assessing
Officer, who is below the rank of Joint Commissioner, after the
expiry of four years from the end of the relevant assessment
year, unless the Joint Commissioner is satisfied, on the
reasons recorded by such Assessing Officer, that it is a fit case
for the issue of such notice.
Explanation. For the removal of doubts, it is hereby declared that
.
Sec 152
Sec 152. (1) In an assessment, reassessment or
recomputation made under section 147, the tax shall be
chargeable at the rate or rates at which it would have
been charged had the income not escaped assessment.
(2) Where an assessment is reopened under section 147,
the assessee may, if he has not impugned any part of the
original assessment order for that year either under sections
246 to 248 or under section 264, claim that the
proceedings under section 147 shall be dropped on his
showing that he had been assessed on an amount or
to a sum not lower than what he would be rightly
liable for even if the income alleged to have escaped
assessment had been taken into account, or the assessment
or computation had been properly made :
Provided that in so doing he shall not be entitled to reopen
matters concluded by an order under section 154, 155,
260, 262, or 263.
.
Sec 153 (2)
Sec 153 (2) No order of assessment, reassessment or
recomputation shall be made under section 147 after the
expiry of one year from the end of the financial year in
which the notice under section 148 was served :
Provided that where the notice under section 148 was served
on or after the 1st day of April, 1999 but before the 1st
day of April, 2000, such assessment, reassessment or
recomputation may be made at any time up to the 31st day
of March, 2002 :
Provided further that where the notice under section 148
was served on or after the 1st day of April, 2005, the
provisions of this sub-section shall have effect as if for the
words one year, the words nine months had been
substituted :
Provided also that where the notice under section 148 was
served on or after the 1st day of April, 2006 and during
the course of the proceedings for the assessment or
reassessment or recomputation of total income, a reference
under sub-section (1) of section 92CA (i) was made
before the 1st day of June, 2007 but an order under sub-
.
REOPENING OF ASESSEMENT
TIME- UPTO 4 YEARS 4 TO 6 YEARS AFTER 6
LIMIT YEARS
Not Assessed Not Assessed Not Assesse
CONDITIO
assessed u/s 143 (3) assessed u/s 143 (3) assess d u/s
NS earlier earlier ed 143 (3)
AO must have Reason to believe that income has escaped assessment
PRE
REQUISITES AO must record reasons before issuing notice under Sec 148  Issue notice
under Sec 148 within time limit
Assessee’s REQUIRED REQUIRE
failure D
Escaped Any amount Rs. 1,00,000 or more Any amount
income
ITO NO Sanction Sanction by Sanction by Sanction by

JC JC CIT ONLY ON
DIRECTION IN
Sanction by APPEAL,
A NO Sanction NO Sanction Sanction by
CIT REVISION OR
JC
C/D COURT’S
ORDER
C
JC NO Sanction NO Sanction NO Sanction Sanction by
CIT
Time limit for issue of notice u/s 148 calculated from the end of the relevant AY
Time limit for completion of reassessment
nine months from the end of FY in which notice under is 148 is served
.
REOPENING OF ASESSEMENT
TIME- UPTO 4 YEARS 4 TO 6 YEARS AFTER 6
LIMIT YEARS
Not Assessed Not Assessed Not Assesse
CONDITIO
assessed u/s 143 (3) assessed u/s 143 (3) assess d u/s
NS earlier earlier ed 143 (3)
AO must have Reason to believe that income has escaped assessment
PRE
REQUISITES AO must record reasons before issuing notice under Sec 148  Issue notice
under Sec 148 within time limit
Assessee’s REQUIRED REQUIRE
failure D
Escaped Any amount Rs. 1,00,000 or more Any amount
income
Sancti Sancti
ONLY ON
ITO NO Sanction Sanction by Sanction by Sanction by
on by on by
FINDING
JC JC CIT CIT
JC OR
DIRECTIO
SanctiN IN Sancti
NO Sanction NO Sanction Sanction by Sanction by
A CIT
on by
APPEAL,on by
JC
C/D JCREVISIONCIT
OR
C NO Sancti
COURT’S
JC NO Sanction NO Sanction NO Sanction Sanction by Sancti
ORDERon by
CIT on CIT
Time limit for issue of notice u/s 148 calculated from the end of the relevant AY
Time limit for completion of reassessment
nine months from the end of FY in which notice under is 148 is served
.
ASESSEMENT: A SUMMARY
SELF
INCOME ASSESSME
NT
TDS
ADVANCE TAX SELF ASSESSMENT TAX ( + INTEREST)
RETURN
139 (1) 139 (4) /

(5)
DUE Upto 1 year
DATE after AY
P.Y. A.Y. F.Y. F.Y. F.Y. F.Y. F.Y. F.Y. F.Y. F.Y. F.Y.
Notice u/s 142 (1) (i)

Notice u/s 148 Notice u/s148
r.w.150
NOTICE TO FILE A RETURN
.
RETURN
139 (1) 139 (4) /

(5)
DUE Upto 1 year
DATE after AY
PROCESSING &
INTIMATION
.
RETURN
139 (1) 139 (4) /

(5)
DUE Upto 1 year
DATE after AY
NOTICE U/S 143(2)

NOTICE U/S 142(1)
ORDER U/S 143(3) /
144
ASSESSMENT
.
REASESSEMENT: A SUMMARY
RETURN
139 (1)
DUE
DATE
ORDER Upto 4 years 4-6 years

U/S
143(3) /
144
NOTICE U/S 148
for ACIT REASSESSME

.
REASESSEMENT: A SUMMARY
RETURN
139 (1) IN RESPONSE

TO NOTICE
DUE
DATE U/S 148
P.Y. A.Y. F.Y. F.Y.
ORDER
U/S NOTICE U/S
143(3) / 143(2)
NOTICE U/S
144 142(1)
ORDER U/S 147

r.w. 143 (3)
NOTICE U/S 148
for ACIT REASSESSME

.
REASSESSMENT
 Can the AO leave certain investigations for a subsequent re-
assessment ?
 AO should NOT make any piecemeal assessment, or make any
observations in the course of assessment proceedings that some
assessable income, the existence of which is in their knowledge, will be
subject to assessment subsequently u/s 147
........ Circular : F No. 45A/180/52-IT dt 6.12.55
 Can the assessee challenge the reopening of assessment by Writ
Petition?
Yes. It can even though it was open for him to challenge it bfore AO /
CIT. ……………….Calcutta Discount Co Ltd V ITO (1961) 41 ITR 191
 Is a reassessment done on the direction of the supervisory officer
valid ?
Yes, so fa as the statutory provisions are satisfied, i.e.. The AO has
applied his own mind and had reasons to believe that income has
escaped assessment (there must be nothing on record to show that the
AO himself believed otherwise) ………….CIT V.
Abdul Khader Ahmed (2006) 156 Taxman 206 (Ker)
 Can the assessee request for reassessment ?
 No. Sec 147 is only for the benefit of the revenue 164
……………..CIT V. Sun Engineering Works (P) Ltd
.
REASSESSMENT
 Can the AO issue notice u/s 148 on the basis of suspicion ?
 No. It has to be on the basis of reasons to believe, not suspect
........ ITO V. Lakhmani Mewal Das (1976) 103 ITR 437 (SC)
 Can the AO assess income other than that which he believed to have
escaped assessment at the time of reopening?
Yes. Once valid proceedings are started u/s 147 the AO not only has
jurisdiction but it is duty to levy tax on the entire income that has
escaped assessment during that year……………….V Jagan Mohan Rao
V. CIT (1970) 75 ITR 73 (SC)
 In the light of V Jagan Mohan Rao V. CIT (1970) 75 ITR 73 (SC) should
the assessee repeat the whole exercise of assessment once again ?
No. He should restrict assessment to underassessed income in view
of the SC judgement
………….Metal Imports P Ltd V. CIT (1994) 72 Taxman 375 (Cal)
 Should the AO give an opportunity to the assessee of being heard
before issuing notice u/s 148 ?
 Not required. …
…………..CIT V. MahaliRam Ramjidas (1940) 8 ITR 442 (PC)
 If the successive AO differ in opinion from his predecessor (facts being
the same) can it be the ground for reopening case for reassesment? 165
 No, not sufficient……………..CIT V. Bhanji Lavji (1971) 79 ITR

.
REASSESSMENT
 Can the AO who realises that he made a mistake during an assessment
later reopen the case for reassessment u/s 147 ?
 No. Ignorance of law is not an excuse for reopening
........ Century Enka Ltd V. ITO (1983) 143 ITR 629 (Cal)
 Can the AO reopen the case u/s 147 later if a particular point of law is
clarified by SC?
No. not if the facts have remained unchanged……………….Indra Co Ltd.
V. ITO (1971) 80 ITR 559 (Cal)
 Can the AO reopen the case u/s 147 if he at the time of original
assessment he was not aware of a Board circular ?
No. ………….Dr H Habicht V. Makhija (1985) 54 ITR 552 (Bom)
 If the AO passed the initial order without making a particular addition,
in spite of the assessee having supplied the facts, as it was getting
time barred, can he later reassess that income u/s 147 ?
 No. Not if the facts before the AO have not changed
……………..G P Agarwal V ACIT (1994) 208 ITR 795 (All)
 Can the assessee claim a loss (not originally claimed in the return) and
seek to carry it forward on the basis of the reassessment?
 No……………..CIT V State Agro Development Corp (2001) 248 487
166
(J&K)
.
REASSESSMENT
 Can the AO reassess the income in a case where the intimation u/s 143
(1) was issued without any addition and no new facts are there ? Is it a
change of opinion ?
 Yes, till other prerquisites for reassessment are satisfied. {This is
not a change of opinion because 143 (1) is not assessment}
........ ACIT V Rajesh Jhaweri Stock Brokers P Ltd (2007) 291 ITR 500
(SC)
 If the AO accepted the returned income u/s 143 (3), can he later issue
notice u/s 148 for reassessment on the basis of material that comes to
his notice during the assessment of the next year ?
Yes. He can……………….Ess Ess Kay Engineering Co P Ltd V CIT (2001)
247 ITR 818 (SC)
 Can the AO have reasons to believe on the basis of rumours or gossip?
No. reason to believe can be based on circumstantial evidence but
not on basis of rumours, gossip or suspicion………….Sheo Nath Singh V
AAC (1971) 82 ITR 147 (SC)
 Can the assessee be said to have disclosed all facts fully when the
transaction under question itself is bogus?
 No. It cannot be said to be true disclosure
……………..Phhol Chand Bajrang Lal V ITO (1993) 203 ITR 456 (SC) 167
 Can the AO resort to reassessment, without any new evidence, on an
.
REASSESSMENT
 In a case of non-filing of return, what is the earliest point of time for
issue of notice u/s 148 ?
As soon as the AY is over and no return is filed by the assessee, nor
any notice is issued to him u/s 142 (1) (i), income would have escaped
assessment. By the mere fact that assessee can file a return u/s 139
(4) it does not follow that noe income can be said to have escaped
assessment until period prescribed u/s 139 (4) is over. However, if an
assessee voluntarily files return u/s 139(4) the AO cannot proceed u/s
148 {for failure to file a return- explanation 2 (a) of Sec 147}
........ Motorola Onc. V CIT (2005) 147 Taxman 39
 Can an AO reopen an assessment u/s 147 to investigate a matter that
was not investigated during the original assessment ?
Yes. There I s nothing in Sec 147 to suggest that the AO cannot do so {
however the conditions for reassessment need to be satisfied}
……………….Ram Prasad V ITO (1995) 82 Taxman 199 (All)
 If the assessee disclosed all facts but claimed benefit on the basis of a
wrong interpretation of law, does it amount to failure in disclosing all
facts?
No. not till he voluntarily disclosed all facts relevant to assessment…
……….Simplex Concrete Piles Ltd (2004) 134 Taxman 74 (Cal) 168
 Will Obtaining relief by an incorrect ratio of a HC / SC decision amount
to failure to truly disclose all material?

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N.A.D.T.

GOAL POLICY LAW ADMINISTRATION

-Collection of revenue for -EQUITY -Standard text -RULES

Sec. 117 (1)

TAX Sec. 2 (7)

Sec 3 Previous year

Financial Act Part 1 , First

Sec 4 Charge of income-tax.

SALARIES GROSS PROFIT 100

Rule 12 - Return of income

Sec 143 (3)

(3) On the day specified in the notice -

(i) issued under clause (i) of sub-section (2), or as soon

Sec 144 (1) If any person-

Sec 147. If the Assessing Officer has reason to believe that

(d) An intimation shall be prepared or generated and sent to

Sec 2 (22AA) document includes an electronic record as

(v) any person who has passed any accountancy examination

ANY LOSS MAY BE ADJUSTED AGAINST

SUM OF AGRICULTURAL INCOME FROM NET

LTCG CASH CREDITS,

Sec 2 (42) resident means a person who is resident in

Sec 2 (30) non-resident means a person who is not a

RULE 12 (1) (a) “...............................verified in the manner indicated therein”

CHAPTER XV LIABILITY IN SPECIAL CASES

Sec 160 – REPRESENTATIVE ASSESSEE (b) Guardian / Manager of

Loss under ‘House property’ ?? u/s 71B ??

Filing of return reqd, if TOTAL INCOME without giving

For certain institutions / associations/trade unions - Filing of

WHO SHOULD SIGN ??

What if the return

Up to one year from the end

Notice u/s 142 (1)

Sec 271F. If a person who is required to furnish a return of

TDS certificates, Audit reports

RULE WHAT HAPPENS IF

any previous year; or

• Persons registered under the Central Sales Tax Act, 1956 or

Provided that the Board may prescribe different dates for

Provided that the Central Government may, by notification in

(c)Assessing Officer includes an income-tax authority who

Sec 139D. The Board may make rules providing for

The actual selection should be confined for a few carefully

Pre-requisites for ordering a Special Audit u/s 142 (2A)

 The AO should form an opinion that the nature of the

Definition of Valuation Officer in Wealth Tax Act

Provided that no Valuation Officer, overseer, surveyor or assessor

Wealth Tax Act  Powers of Valuation Officer, etc.

Sec 37 (1) The Assessing Officer, Valuation Officer, Deputy

(d) an intimation shall be prepared or generated and sent to

Explanation. For the purposes of this sub-section,

 What is the relevance of admission of addition by the assessee?

Evidence Act, 1872

 Can the AO reject the documents filed by the assessee as evidence –

 For establishing that an explanation submitted by the assessee is not

 For establishing that a document submitted by the assessee is not

31.7. 1.4. 31.3. 31.12

 If the AO wants to apply comparable ratios for passing an order u/s

(2) The provisions of sub-section (1) as to the issue of notice

Sec 149. (3) If the person on whom a notice under section

Sec 150. (1) Notwithstanding anything contained in section

ITO NO Sanction Sanction by Sanction by Sanction by