notice u/s 143(2)
Querist :
Anonymous
(Querist) 30 December 2010
This query is : Resolved
whether the A.O. can select the case for scrutiny and issue the notice U/s 143(2) with out processing the income tax return u/s 143(1)?
Since as per circular no.75/2009 For the A.Y. 2009-2010 Jurisdiction transfered to the cpc Bangolare to process the return u/s 143(1) if the A.O. has no Jurisdiction to process the Return Then how he can issue the notice u/s 143(2) And pass the Assessment Order u/s 143(3)?
As Per Explanatory Notes finance act 2008 1/2009 dated 27-03-2009 ā€¯ Generally, Tax administrations across the countries adopt two stage of procedure of assessment as part of risk management strategy. In the First Stage, all tax returns are processed to correct arithmetical mistakes, internal in consistency tax calculation and verification of tax payment. At this stage, no verification of the income is under taken. In The Second stage, a certain percentage of the tax returns are selected for scrutiny/audit on the basis of the probability of detecting tax evasion. At this stage, the tax administration is concerned with the verification of the income. Reading the explanatory it is clear that after completing the first stage A.O. can select the case for scrutiny.
Vineet
(Expert) 04 August 2011
The notification no 75 of 2009 granted concurrent jurisdiction to the CPC authorities enabling them to process the e-filed returns. However, the jurisdiction of regular assessing officers continues and they are judicially correct to issue notice u/s 143(2).
Regarding other issue, there is no bar on issuance of notice u/s 143(2) before processing u/s 143(1).
