01 March 2010
In assessment order the Total Income is computed by the Assessing Officer keeping in mind the relevant facts and circumstances of the case.
Now-a-days; whenever a case is selected for scrutiny; the A.O. issues a detailed questionnaire which covers the following points :
1. Nature of Business
2. Address of Business with phone number including its branches and godowns.
3. Name of proprietor/partners/directors with their residential addresses, phone numbers.
4. Name and addresses of Sister Concerns.
5. Three years Sales, Gross Profit and Net Profits and its Ratios.
6. New Capital Introduced; if any; then source thereof.
7. New loans introduced.
8. Loans confirmations with addresses and their PAN no. of Lending persons.
9. List of Sundry Creditors above Rs.....(as per his discretion) and their confirmation with PAN.
10. List of New plant and machinery or other fixed assets purchased with supporting invoices.
11. List of Sundry Debtors above Rs..... (as per his discretion) and their confirmation with PAN.
12. Investment made above Rs......(as per his discretion) during the year.
13. List of Bank accounts, Bank Reconciliation Statement and copy of Bank statements.
14. Monthwise Sales and Purchases.
15. Quantitative monthwise summary of stock records.
16. Valuation of Opening and Closing Stock.
17. Summary of major expenses.
18. Household expenses including ceremonial expenses of family, expenses of school/colleges.
19. Copies of TDS Certificates and other deductions claimed in the return.
20. Copy of TDS payments if applicable.
21. Copy of Tax Challans.
22. Details of family members, their Assessment Status and PAN togetherwith Drawings made to support the living expenses.
23. Previous Assessment order copy; if any.
24. Any other point which he can raise on the basis of his checking of books of account and vouchers.
25. Copy of Audit Report and Statement of Affairs with Computation of Income for assessment year and previous two years.
After considering the above points of his own; he discusses in details all the above points with the assessee about its genuineness and thenafter decides whether the expenses claimed are genuine one and/or the income is suppressed.
If he finds that something is not acceptable; looking to the case; he makes recomputation of Total Income after adding those expenses/amount which according to him is not acceptable as deduction and/or income is not properly shown and accordingly Income Tax liability is decided.
At the time of making assessment order; first portion says about assessee, his PAN, Address, Previous Year, Assessment year and the section under which assessment order is framed.
Thenafter he writes about the discussion and gives his reasoning why certain items are not accepted as filed by the assessee. This assessment order is same as decided by the courts which decide the cases after hearing the parties. Income Tax Officer is a quasi-judicial authority; because there are only one party with whom he discusses.
A demand notice is issued which is required to be paid by the assessee or he can go for appeal.
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