Notices, Appeal, Revisions, Search & Seizure Under Income Tax

NOTICE

If any person is receiving notice then they need to act on the notice. Recently CBDT which is known as Central Board of Direct Tax has launched the scheme that is termed as Centralized Communication Scheme, the scheme says that all the communication shall be made in electronic mode.

There are different types of notice which are as follows:

NOTICE UNDER SECTION 143(2) - REGULAR ASSESSMENT

The objective of sending this notice is that to inform the assessee about the return file which is been picked for scrutiny.

NOTICE UNDER SECTION 148 - INCOME ESCAPING ASSESSMENT

The assessing officer who believes that the taxpayer has skipped some income or he has not file the return so he will assess or reassess the file so for that he will send the notice under this section.

NOTICE UNDER SECTION 245 - SET OFF OF REFUND AGAINST TAX PAYABLE

If assessing officer is of believe that the taxpayer has not filed the return of previous year and taxpayer has asked for set off of refund for current year then the assessing officer will issue notice under this section.

NOTICE UNDER SECTION 142(1) - INQUIRY BEFORE ASSESSMENT

If you have filed the return but assessing officer wants some extra information from you or you have not file your return at all then the officer will ask you to file it and officer will issue notice under this section.

APPEAL

Appeal is a procedure to make a correct decision of a court by questioning the higher court or courts which are for appeal. Appeal means ‘making a request’ or ‘apply to higher court’ in legal parlance for changing the decision of lower court.

Appeal can be made to following courts:

If a person is aggrieved by an order of assessing officer then file an appeal to the Commissioner.

If a person is aggrieved by an order of Commissioner then file an appeal to the Tax Appellate Tribunal.

If a person is aggrieved by an order of Tax Appellate Tribunal and if it there is question of law then file an appeal to the High Court.

If a person is aggrieved by an order of High Court then file an appeal to the Supreme Court.

REVISION

If the order which is passed by the Assessing officer is unreasonable or unjust as per the taxpayer then he can file a request for revision of order. Revision in Income Tax order can also lead to increase in tax liability of the taxpayer. The power of revising the order which is passed by assessing officer is with Principal Commissioner or Commissioner only if he has reasons to believe that there has been erroneous in passing the order.

TIME LIMIT FOR REVISION OF ORDER

The revision of the order shall be made within two years from the date of passing the order. Following days shall not be included in calculating the days for above period:

1. The time which was used for opportunity by the assessee to be re heard.
2. The time or period for which any proceeding has stay order from any court.

The period cannot be extended even because of the extraordinary circumstances.

SEARCH AND SEIZURE

AUTHORITIES WHO CAN ISSUE ORDER FOR SEARCH AND SEIZURE

• Principal Director General of Income Tax.
• Principal Director of Income Tax.
• Principal Chief Commissioner of Income Tax.
• Principal Commissioner of Income Tax.
• Additional Director.
• Joint Director of Income Tax.

Authored by Adv Shivam Kumar