11 August 2010
Dear Experts, I have a doubt in Income Tax Act. An assessee has filed the return u/s 139(1) within due date for the assessment year 2008 - 09 which is a tax audit. They had refund due, because of excessive TDS deduction by the parties they are dealing with. However they have got the refund for the assessment year 2008-09. Is the assessment complete w.r.t. assessment year 2008-09? If yes under what section the assessment has been completed? Has the Assessing Officer again take it for scrutiny u/s 143(1) of the Income Tax Act? In such a case can the A.O. issue a tax demand notice for the asst. year 2008-09? Please provide me the answers for this...very urgent sir. With regards, Rajesh.
11 August 2010
First of all, merely filing return does not mean that your assessment is complete unless you receive an assessment order from the IT department.
Further, the case can be taken for scrutiny under section 143(1) at both the times i.e Before issue of Assessment Order & After issue of Assessment Order
Even then you will get 100 % credit of TDS deducted by your parties & any demand can be issued only in the case where AO finds total tax payable is more than your TDS claim.
11 August 2010
When you have received refund , that means an intimation u/s 143(1) has been served. Scruitnee assessment is under section 143(3) .intimation u/s 143(1) is not an assessment. it is better to collect the copy of intimation u/s 143(1) and apply for rectification u/s 154.
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