Income-tax Act,1961
Act No : 43
Section :
Inquiry before assessment
142. Inquiry before assessment (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,- 3[(i)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] 5[(ii)] to produce or cause to be produced, such accounts or documents as the 6[Assessing] Officer may require, or 7[(iii)] 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 the ----------------------------------------------------------------------- -> -> (4) After a regular assessment has been made, any amount refunded on provisional assessment made under sub-section (1) shall be dealt with in the manner specified hereunder, namely:- (a) where the sum refundable on regular assessment is equal to or exceeds the amount refunded under sub-section (1), the amount so refunded shall be deemed to have been refunded towards the regular assessment; (b) where 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. (5) Nothing done or suffered by reason or in consequence of any provisional assessment made under this section shall prejudice the determination, on the merits, of any issue which may arise in the course of the regular assessment. (6) There shall be no right of appeal against a provisional assessment made under sub-section (1)." 1 Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. 2 Substituted for "or to whom a notice has been issued under sub- section (2) of section 139 (whether a return has been made or not)" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989. The italicised words were substituted for "or upon whom a notice has been served" by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976. 3 Inserted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989. 4 Substituted for "before the end of the relevant assessment year" by the Finance Act, 1990, w.e.f. 1-4-1990. 5 Renumbered for clause (i) by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989. 6 Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. 7 Renumbered for clause (ii) by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989. ------------------------------------------------------------------------ 1.533 assessee, 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. (2) For the purpose of obtaining full information in respect of the income or loss of any person, the 4 [Assessing] Officer may make such inquiry as he considers necessary. 5[(2A) 6 If, at any stage of the proceedings before him, the 7[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 9[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 9[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 10[Assessing] Officer may require.11 (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 otherwise. (2C) Every report under sub-section (2A) shall be furnished by the assessee to the 12[Assessing] Officer within such period as may be specified by the 13[Assessing] Officer: Provided that the 14[Assessing] Officer may, 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; ----------------------------------------------------------------------- 1 Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. 2 Substituted for "Inspecting Assistant" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. 3 Substituted for "Income-tax", ibid. 4 Ibid. 5 Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4- 1976. 7 Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. 8 Substituted for "Commissioner", ibid. 9 Ibid. 10 Substituted for "Income-tax", ibid. 12 Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. ------------------------------------------------------------------------- 1.534 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 1[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 XVIID for the recovery of arrears of tax.] (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) 2[or any audit under sub-section (2A)] and proposed to be utilised for the purpose of the assessment. 3[(4) The provisions of this section as they stood immediately before their amendment 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 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.]
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