Notice u/s 142 and 143

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 December 2013 Dear Sir,
For the A.Y.2011-12, we filled ROI on 30.09.2011. We had received notice U/S 142 (1) on 19.08.2013 due to change in office incumbent.

For Notice U/S 143 (1), the time limit is over.My question is, whether, notice U/S 142(1) is continuation to issue notice U/S 143 (2). I mean, still is there any power with A.O. to issue notice U/S 143 (2) as he already issued notice U/S 142(1)..?

CA Ankit Anupkumar Luharka

CA Ankit Anupkumar Luharka (Expert)
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11 December 2013 First of all, you should confirm that the notice is u/s 142(1)(i) or 142 (1)(ii). If you are a company or covered under the audit, then you have filed return in time and thus the AO cant send the notice u/s 142(1)(i).
Also 143(1) is not a notice, its a intimation.
However, notice u/s 143(2) cannot be issued only if you have not filed the return. In your case, as you have filed the return, the AO can issue the notice u/s 143 (2) irrespective of the notice u/s 142(1).

Querist : Anonymous

Querist : Anonymous (Querist)

19 December 2013 Dear Sir,
For A.Y.2011-12, company has filled Return on 30.09.2011.Now, ho AO can issue notice U/S 143(2) as the time limit is over for issue of notice U/S143(2).AO has issued notice U/S 142 (1) to us.

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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04 August 2024 In your case, here's a breakdown of the procedural aspects related to notices under Sections 142 and 143 of the Income Tax Act:

### **Understanding the Notices:**

1. **Notice u/s 142(1):**
- **Purpose:** This notice is issued by the Assessing Officer (AO) to request additional information or documents from the assessee. It is typically used to gather details necessary for completing the assessment.
- **Timing:** It can be issued at any time during the assessment proceedings to obtain information and documents.

2. **Notice u/s 143(2):**
- **Purpose:** This notice is issued to initiate a detailed scrutiny of the return filed by the assessee. It is part of the process where the AO formally initiates an assessment proceeding to verify the return.
- **Timing:** It must be issued within six months from the end of the financial year in which the return was filed. For A.Y. 2011-12, the deadline for issuing this notice was September 30, 2013.

### **Relation Between Notices u/s 142(1) and 143(2):**

1. **Issuance of Notice u/s 143(2):**
- **Deadline:** The AO must issue a notice u/s 143(2) within the specified time limit, which is six months from the end of the financial year in which the return was filed. For A.Y. 2011-12, this period expired on September 30, 2013.
- **Implication:** If the AO has not issued the notice u/s 143(2) within the prescribed time limit, then the AO loses the power to issue such notice for that assessment year. This is a time-barred limitation.

2. **Impact of Notice u/s 142(1) on 143(2):**
- **Continuation of Proceedings:** The issuance of a notice u/s 142(1) does not extend or revive the time limit for issuing a notice u/s 143(2). The notice u/s 142(1) is part of the information-gathering process and does not impact the procedural requirement for issuing a notice u/s 143(2).
- **Assessment Proceedings:** If the notice u/s 143(2) is not issued within the time limit, the AO cannot proceed with the assessment under the regular provisions, and the return may be considered as accepted by default.

### **Summary and Steps Forward:**

1. **No Notice u/s 143(2) Issued:**
- Since the time limit for issuing a notice u/s 143(2) for A.Y. 2011-12 has passed (September 30, 2013), the AO cannot issue this notice now. The proceedings under section 143(2) for that assessment year are time-barred.

2. **Notice u/s 142(1):**
- The notice u/s 142(1) issued after the deadline for issuing a notice u/s 143(2) is likely invalid for initiating a new assessment proceeding for that assessment year. The AO can use notice u/s 142(1) only to request information but cannot use it to initiate or continue an assessment for that year if the notice u/s 143(2) was not issued in time.

3. **Action to Take:**
- **Respond to the Notice:** If you received the notice u/s 142(1), respond to it with the requested information, explaining that the notice u/s 143(2) was not issued within the statutory period. This response will ensure that you are in compliance with the information request while making it clear that the assessment cannot be proceeded with due to the time-barred status.

4. **Consult a Tax Professional:**
- **Seek Guidance:** Consult a tax advisor or professional to ensure that your response is appropriate and that you are protected from any adverse implications.

In essence, the lapse of the notice u/s 143(2) deadline means that the AO cannot initiate or continue the assessment for A.Y. 2011-12, regardless of the notice issued u/s 142(1).