NOTICE UNDER SECTION 142(1)

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P.S.VISHWANATHAN

P.S.VISHWANATHAN (Querist)
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30 October 2009 MY SINCERE THANKS TO MS.SEEMA FOR HER KIND REPLY. HOWEVER, MY DOUBT STILL PERSISTS. TO MY KNOWLEDGE THE POWER OF ENQUIRY UNDER SECTION 142(1) IS VESTED WITH AO FOR COMPLETING THE ASSESMENT WHICH IS STARTED BY NOTICE UNDER SECTION 143(2). WHEN NO NOTICE UNDER SECTION 143(2) HAS BEEN ISSUED AND CANNOT NOW BE ISSUED SINCE BARRED BY LIMITATION, HOW CAN A NOTICE UNDER SECTION 142(1) BE ISSUED?

ramprasad

ramprasad (Expert)
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30 October 2009 Notice under section 142(1) is issued for the purpose of making an assessement.

Section 142(1) has three clauses (i),(ii) and (iii). Notice under section 142(1)(i) is issued asking the assessee to file return, where the assessee if failed to do so.

Notice under section 142(1) (ii) and (iii) is served whether assessee files return of income or not.

Notice under section 143(2) can be issued only if the return of income is filed.

The time limit for serving the notice under section 143(2) is with in six months from the end of the financial year in which the return of income is filed.

The notice under the section 142(1) served only after expiry of time limit for filing return of income.