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Sec 143(3)

tanay (CA) (27 Points)

24 January 2014

What is sec. 143(3) about in income tax???

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Pradeep Gupta (Accounts Manager) (298 Points)
Replied 31 January 2014

Originally posted by : tanay
	What is sec. 143(3) about in income tax???

Sec. 143(3) deals with Scrutiny Assessment.

Under Scrutiny Assessment AO can reduce the income below the returned income and can assess the loss higher than the returned loss .

For Scrutiny Assessment, AO need to send notice u/s 143(2) within 6 Months from the end of the AY in which return has been filed.

If return has not been filed, they can’t do scrutiny assessment.

1st proviso of Sec. 143(#3) provides that AO can himself disallow the exemption u/s 10(21)/10(22B)/10(23A)/10(23B)/10(23C) while making assessment u/s 143(3). He can do so only if CG has rescinding the notification and withdrawing the exemption. For that AO will inform CG about the contraventions made by such institutions and Govt will withdraw the exemption.

2nd proviso of Sec. 143(3) empower AO to recommend to the CG to withdraw the approval u/s 35(1)(ii)/ 35(1)(iii) in case AO finds the such institution is not complying the conditions subject to which approval was granted to it.

Further Sec. 153 states the time limit for the completion of Assessment.

Assessment u/s 143(3) or u/s 144 (Best Judgment Assessment) = Time limit=> Within 2 years from the end of the relevant AY.

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