notice under section 143(2)

This query is : Open

J KOTESWARARAO (Querist)
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10 October 2009 I am a salaried person and my income was less than 5 lacs.

For the assessment year 2008-09, i filed return in the month of july 2008.

On 5/10/09 i was issued a notice under section 143(2)to attend the IT office on 12/10/09. Unfortunately i attended on 7/10/09 and meet the ITO. I was asked about my bank accounts and i told her(ito).

She taken my signature where it was written that " told to have bank accounts in HDFC, ICICI, SBH and ANDHRA BANK and to come with all the statements and movable immovable assets on 7/11/09".

Q1) Whether Notice under section 143(2)
should be issued within 12 months or
not? In my case is it valid or not?

Q2) Even though i attended (only once) can
i claim it invalid now?

Q3) For what amounts we have to prove the
source? morethan 10000/- or 20000/-?

I am very much worried please answer me.

Rajeev

Rajeev (Expert)
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10 October 2009 1.WEF 1/4/2008 Last date for the notice to be served on the assessee for sec 143(2) whos return is filed in the month of July 08 , should be 30/9/2009.

It should be noted that the word used is "served" and not issued .

Proper service of notice is a mandatory requirement to assume jurisdiction u/s 143(2) to make a valid assessment order u/s 143(3)

In your case , if the notice was not sent earlier (& returned) , i think the notice is not served properly and hence becomes void . Any assessment there after u/s 143(3) would be void ab initio.

Just check with the AO/ postal dept whether the notice was served and returned before 30/9/09

Hence i think , first file an affidavit stating that no notice is served on you . Once the affidavit is filed , the onus is on the AO to prove that notice is served properly . Just make sure that the affidavit is taken on record , also send a registered AD of the same to the AO . Pls make sure you sign on the AO's proceeding sheet that affidavit is submitted .

2.Just by attending once , the notice doesnt become "good in law " . I think theres no problem with regards to sec 292BB which has given the assessee a right to challenge a notice before completion of the assessment .

3.There is no threshold limit for source of income . The normal procedure of assessment follows and the AO is given wide powers to ask for any source .

Dont be worried , Just file the affidavit , rest will be sorted out . In almost all the cases where i have filed an affidavit , there was no problem

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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11 October 2009 In view of the provisions of section 292BB(b),w.e.f 01/04/2008 ,the assessee cannot challenge the validity of service of notice since his appearance is recorded on 07/10/2009 by the ITO.

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J KOTESWARARAO

J KOTESWARARAO (Querist)
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11 October 2009

comments of you(both) are deffered. Which one is correct?

one more doubt. Can i say that i keep cash of 200000/- always in my home and can i show it is the source for different credits upto 200000/-

Rajeev

Rajeev (Expert)
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11 October 2009 Warrierji ,

In my opinion , the intention of 292BB is not to handicap the assessee , he can definitely challenge the service of notice before the completion of assessment , provided his challenge is on record .

proviso is added to 292BB where an assessee is well within his rights to challenge the service of notice before completion of assessment or reassessment .

One more advice(to the querist) , in case if you feel you should be attending the proceedings , dont disclose more than you are asked for . I am not sure what u mean by keeping 2L cash at home .