CA Bijay Shrestha (Never Give up....No matter what....) (858 Points)
30 November 2017Dear Experts and friends,
1. For how many AYs, Notice under Section 142(1) can be issued ? I have seen in a case of a Construction Company, Department has issued Notice u/s 142(1) for AY 2010-11 to 2016-17 asking for some details and books. Is this a valid Notice?
2. Can Department issue Notice u/s 143(2) before issuing notice u/s 142(1) for the same AY?
Please kindly suggest.
RAMAKRISHNAN R
(INCOME TAX OFFICER)
(1736 Points)
Replied 30 November 2017
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(166227 Points)
Replied 30 November 2017
1. Though there is no time limit for issuing notice u/s. 142(1)......... but only in case if return were not filed or not properly verified or invalidated........
2. But if properly filed, then the notice should follow after the notice u/s. 143(2), which might have been issued earlier or returned back. If nothing of short...... Than it not valid.
For more discussion refer: https://www.caclubindia.com/forum/notice-u-s-142-1--422221.asp
RAJA P M
("Do the Right Thing...!!!")
(127911 Points)
Replied 30 November 2017
RAJA P M
("Do the Right Thing...!!!")
(127911 Points)
Replied 30 November 2017
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(166227 Points)
Replied 30 November 2017
Correct ..............
Your gesture has not been conveyed as you have exceeded
the limit of number of thanks allowed.
RAJA P M
("Do the Right Thing...!!!")
(127911 Points)
Replied 30 November 2017
CA Bijay Shrestha
(Never Give up....No matter what....)
(858 Points)
Replied 01 December 2017
11:34:48 Thank you for contacting us. An operator will be with you shortly. Note : The replies are based on the opinion of the expert and in no manner it should be interpreted as the clarification by the Income-tax Department on any matter.
11:34:48 Bijay: Can AO issue Notice u/s 143(2) before issuing notice u/s 142(1) for the same AY provided the return has been already filed and Notice u/s 143(2) was issued within the time allowed?
11:35:33 Operator Tax Expert 33 joined the chat
11:35:36 Tax Expert 33: Hello
11:38:18 Tax Expert 33: Request you to please be patient with us, we are trying to get information for you.
11:38:38 Bijay: ok
11:39:49 Tax Expert 33: Yes AO can issue Notice under Section 143(2) before issuing notice under section 142(1) if the return has been filed under section 139
11:41:30 Tax Expert 33: Do you have any other query?
11:41:39 Bijay: Yes one more please
11:43:25 Bijay: If Time is barred for issuing Notice u/s 143(2), Can the AO issue Notice u/s 142(1) asking for documents/books etc?
11:45:26 Bijay: If yes, then How the AO will deal with such documents/books if NOT satisfied and under which section, AO will initiate Assessment [I believe it is NOT under section 143(3)] ?
11:46:56 Tax Expert 33: Section 142(1) is for the purpose of filing Income tax return and furnishing books and documents and Section 143(2) is for assessment
11:47:55 Bijay: Yes. I mean to say Return has been filed u/s 139(1) and AO just asked Documents/books u/s 142(1)?
11:48:18 Bijay: And time is barred for issuing notice u/s 143(2).
11:49:02 Bijay: Now How AO will deal with such documents/books?
11:49:03 Tax Expert 33: Yes AO can ask for documents/books under section 142(1)
11:49:08 Bijay: If Not satisfied?
11:49:54 Tax Expert 33: Yes AO can ask for documents/books under section 142(1)
11:49:58 Tax Expert 33: Do you have any other query?
11:51:06 Bijay: Ok. Then after receiving books u/s 142(1), AO is not satisfied with it. He wants to do detailed assessment. Then under which section he can do that?
11:51:46 Tax Expert 33: Request you to please be patient with us, we are trying to get information for you.
11:52:03 Bijay: ok
11:52:25 Tax Expert 33: You can contact your Jurisdictional Assessing officer for this query
11:53:00 Tax Expert 33: Do you have any other query? 11:53:05 Bijay: ok thanks a lot. 11:53:10 Bijay: no other query.
11:53:19 Tax Expert 33: Thank you for chatting with us. Have a nice day. Good bye
This is the Chat details in CBDT Website.
CA Bijay Shrestha
(Never Give up....No matter what....)
(858 Points)
Replied 04 December 2017
As per my understanding, if Return has been filed u/s 139(1), and Notice u/s 143(2) is time barred to initiate Assessment u/s 143(3) and Notice has been issued u/s 142(1) asking for books but AO is not satisfied with these books, then AO can do Assessment u/s 144 or 147 but not under 143(3).
(However, to do assessment u/s 147, Notice u/s 148 is required to be issued.)
Is it correct?
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(166227 Points)
Replied 04 December 2017
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As per my understanding, if Return has been filed u/s 139(1), and Notice u/s 143(2) is time barred to initiate Assessment u/s 143(3) and Notice has been issued u/s 142(1) asking for books but AO is not satisfied with these books, then AO can do Assessment u/s 144 or 147 but not under 143(3). ANS: Here there is a catch. When reply to notice u/s. 142(1) issued, assessment u/s. 143(3) will progress assuming acceptance of notice u/s. 143(2) by assessee. Unless the objection is not raised about the time barred notice of 143(2), it will be concluded as its acceptance.
Ans: Yes |
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CA Bijay Shrestha
(Never Give up....No matter what....)
(858 Points)
Replied 04 December 2017
Thank you sir for your kind response.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(166227 Points)
Replied 04 December 2017
An informative case law for study........ attached.....
RAJA P M
("Do the Right Thing...!!!")
(127911 Points)
Replied 04 December 2017
| Originally posted by : Dhirajlal Rambhia | ||
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An informative case law for study........ attached..... |
 |
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