Direct tax u/s-143(2) & u/s-142(1)
pratik
(Querist) 08 March 2013
This query is : Resolved
Dear sir,
can ito issued notice u/s 142(1) after issuance of notice u/s 143(2) please answer with related case laws as per income tax act
Sankaranarayanan
(Expert) 09 March 2013
Sec 142(1) describes the following (1) For the purpose of making an assessment under this Act, the 1[ Assessing] Officer may serve on any person who has made a return under section 139 2[ or in whose case the time allowed under sub- section (1) of that section for furnishing the return has expired] a notice requiring him, on a date to be therein specified,-
(i) 3[ where such person has not made a return 4[ within the time allowed under sub- section (1) of section 1391, to furnish a return of his income or the income of any other person in respect of which he is assessable under this Act, in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed, or]
(ii) 5[ ] to produce or cause to be produced, such accounts or documents as the 6[ Assessing] Officer may require, or
(iii) 7[ ] to furnish in writing and verified in the prescribed manners information in such form and on such points or matters (including a statement of all assets and liabilities of theassessee, whether included in the accounts or not) as the 1[ Assessing] Officer may require: Provided that-
(a) the previous approval of the 2[ Deputy] Commissioner shall be obtained before requiring the assessee to furnish a statement of all assets and liabilities not included in the accounts;
(b) the 3[ Assessing] Officer shall not require the production of any accounts relating to a period more than three years prior to the previous year.
If the
143(2) describes as follows
If an assessment is to be completed under section 143(3)read with section 158-BC (Income Tax Act), notice under section 143(2) should be issued within one year from the date of filing of block return. Omission on the part of the assessing authority to issue notice under section 143(2) cannot be a procedural irregularity and the same is not curable and, therefore, the requirement of notice under section 143(2) cannot be dispensed with”, said a bench comprising Justice SH Kapadia and Justice HL Dattu.
The Income Tax Appellate Tribunal while affirming the decision of the CIT(A) had said non-issue of notice under section 143(2) of the act is only a procedural irregularity and curable. It was overturned by the Guwahati high court.
Against it, the revenue department had filed six appeals in the apex court. The department had maintained that since the provisions incorporated in the Chapter XIV B (related to block assessment) constitute a special code to assess the undisclosed income in search cases, they would override the provisions of Chapter XIV, the procedure for normal assessments.
Rejecting the plea of department, the apex court said: “Had the intention of the legislature was to exclude the provisions of Chapter XIV of the act, the legislature would have or could have indicated that also
R.V.RAO
(Expert) 14 March 2014
yes. notice under 142(1)requires assessee to furnish return of income or books or info. required by assessing officer,where as 143(2) is notice for scrutiny assessment.
