Assessment u/s 143(3)

This query is : Resolved

Report Abuse Follow Query Ask a Query

RISHIKESH KUMAR

RISHIKESH KUMAR (Querist)
Follow

18 November 2013 what are bases of selection of files for make assessment u/s 143(3) by department of incometax

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
Follow

18 November 2013 There is no fix criteria it is actually randomly selected by dept software with pre fixed criteria by such software.

RISHIKESH KUMAR

RISHIKESH KUMAR (Querist)
Follow

18 November 2013 if there is large decline in profit % then chance of 143(3) is huges

Upgrade to CAclubindia Pro. Subscribe Now!

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
Follow

18 November 2013 Yes...such unusual and abnormal figures or ratios in comparison to prev year have high chances that it invites notices from it dept.

RISHIKESH KUMAR

RISHIKESH KUMAR (Querist)
Follow

18 November 2013 but such decline in profit % due to change in nature of business from retail to wholesale then dept. consider that matter.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
Follow

18 November 2013 the reason is known to the assessee while filling return of income but ao doesnt know till assessment is done...

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

18 November 2013 This might be helpful to you:

http://incometaxindia.gov.in/archive/BreakingNews_Scrutiny_Cases_06082013.pdf

http://www.incometaxmanagement.com/pages/KnowledgeBASE/Aug-13/14-Sec143%283%29-Scrutiny-Assessments-by-Income-Tax-Department.html

http://corporatelawreporter.com/2013/06/03/cbdts-scrutiny-guidelines-section-1433-assessment-not-valid-if-case-has-been-picked-up-contrary-to-guidelines/

Your case might get covered wherein the AO might like to check wherein you have claimed excessive expenditure/losses