07 September 2023
Sir, When notice is served u/s.148 due to non filing of ROI and assessee is not respoding to that notice, then, A.O. after the time limit mentioned in the notice, he can pass the order U/s.147 as per the material available with him right ? , But again why the AO has to travel to issue the notices u/s.142, 143(2) etc. etc. Hence, I am not able to understand, kindly enlighten me.
11 July 2024
I understand your confusion regarding the procedures followed by the Assessing Officer (AO) under the Income Tax Act, especially in cases where a notice under section 148 has been issued due to non-filing of the Return of Income (ROI) by the assessee. Let me clarify the process and the reasons why subsequent notices under sections 142 and 143(2) might still be issued:
### Notice under Section 148
1. **Initiation of Proceedings**: When the AO issues a notice under section 148, it signifies that the AO has reason to believe that income chargeable to tax has escaped assessment. This notice is typically issued if the AO has information suggesting that the assessee has not disclosed certain income in the ROI.
2. **Assessment Proceedings**: The assessee is required to respond to the notice under section 148 by filing the ROI within the stipulated time. If the assessee fails to respond or comply, the AO may proceed to assess the income based on the material available with them.
### Subsequent Notices under Sections 142 and 143(2)
1. **Purpose**: Despite the issuance of notice under section 148 and even if the AO intends to proceed with the assessment based on available material, subsequent notices under sections 142 and 143(2) are issued for the following reasons:
- **Verification of Information**: The AO may require additional information, documents, or clarifications from the assessee to complete the assessment accurately.
- **Opportunity to Assessee**: Issuance of notices under sections 142 and 143(2) provides an opportunity for the assessee to present their case, provide explanations, and submit supporting documents.
- **Legal Compliance**: These notices are part of the statutory process designed to ensure that assessments are conducted in accordance with the principles of natural justice and fair opportunity to the assessee.
2. **Assessment Completion**: Even if the AO has initiated proceedings under section 148 and has material to proceed with assessment, they must still follow due process, which includes allowing the assessee to participate in the assessment proceedings, respond to queries, and provide necessary information.
### Conclusion
While the AO may have initiated proceedings under section 148 based on available information, subsequent notices under sections 142 and 143(2) are essential for completing the assessment process fairly and in compliance with legal requirements. These notices ensure that both the AO and the assessee have the opportunity to present their respective cases and provide all necessary information before finalizing the assessment order. Therefore, the issuance of multiple notices is part of the procedural requirements under the Income Tax Act to ensure thorough and transparent assessment proceedings.
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