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| Section no. | Heading | Brief Notes |
| 139 (1) | Return of Income | *
Every co. & firm - Always (even if no income /all income is exempt) * Any other person- If his TI/ TI of person in respect of which he is assessable exceeds BEL Note: TI is to be computed before allowing any deduction u/s 10A, 10B or 10BA and u/c VI-A |
| Time Limit for submission of Return | *
In case of Companies/ person whose accounts are required to be audited by any
law/ working partner of firm whose accounts are required to be audited (even
if he is paid fixed remuneration) - 30th September of the AY * Other assessees- 31st July of the AY * If person who is required to file return, fails to file the same within due date, is liable for penalty of Rs. 5000 (Sec271 F) |
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| 139 (3) | Loss Return | *
If you want to carry forward & set off the loss - file return within
above time limit * In case of HP loss/ Unabsorbed depreciation/ unabsorbed family planning expenses - it can be set off even if return is not filed within above time limit. However, return should be filed before you can carry forward the loss (as only determined loss can be c/f) |
| 139 (4) | Belated Return | *
If any person required to file return u/s 139 (1) has not filed return within
time limit specified above * If any person not required to file return u/s 139 (1) but to whom notice u/s 142 (1) was issued to file return has not filed return within time allotted under notice - may file return at any time before expiry of 1 year from end of relevant AY or before completion of assessment (u/s 144), w.e.e |
| 139 (4A) | ROI of Charitable Trust or Institution | * If its TI before giving exemption u/s 11 or 12 exceeds BEL shall file return |
| 139 (4B) | ROI of Political Party | * If its TI before deduction u/s 13A exceeds BEL shall file return |
| 139 (4C) | ROI of certain Association & Institutions | * If its TI before giving exemption u/s 10 exceeds BEL shall file return |
| 139 (4D) | ROI Of University, College Or other Institution carrying Scientific Research Programs | * It shall file the ROI compulsorily |
| 139 (5) | Revised Return of Income | *
It can be filed only if original return was filed in time and was not a
belated return * It can be filed if we discovers any omission or wrong statement * Return can be revised any no. of times * Loss return can also be revised * Time limit:- 1 year from end of RAY or completion of assessment w.e.e |
| 139 (9) | Defective Return | *
AO, if finds any defect can intimate aa * aa shall file new return within 15 days |
| 139A | PAN | *
Few conditions for compulsory application * one can apply voluntarily also |
| 139B | Submission of Return through Tax Return Preparers (TRPs) | * TRPs help aa to prepare & file returns |
| 139C | Power of Board to Dispense with furnishing of the Documents with Returns | * CBDT may provide class/ es of person to whom to it may dispense with furnishing of the Documents with Returns |
| 139D | Electronic Filing Of Return | * CBDT may make rule for e-filing of return |
| 140 | Who Shall Sign The Return | To
be signed by authorized persons: * Individual- himself/ authorized person * HUF- Karta * P.F - Any partner * Company- M.D. / Director * Local Authority- Principal officer * AOP/ BOI - any member/ Principal officer |
| 140A | Self Assessment | *
Tax is payable on basis of return submitted * Tax to be paid after taking into credit advance tax/ TDS/ TCS, relief u/s 90, 91, 90A and MAT credit * tax to be paid along with interest * If payment is short, then it is first applied towards interest |
| 142 (1) | Direct Inquiry From Assessee | AO
may serve notice for * Filing of return if not filed within time limit u/s 139 (1) * Production of accounts & documents * Furnishing of Information on required matters (including statement on Assets & Liabilities, included in accounts or not) * For statement on Assets & Liabilities not included in accounts prior approval of JC is required * A.O. shall not require production of accounts & documents exceeding a period of 3 years prior to RPY |
| 142 (2) | Inquiry from any Person in connection with assessment | * Inquiry from any person in connection with assessment of Income of assessee can be made for getting Full Information |
| 142 (2A) | Special Audit | *
AO may direct aa to get its accounts audited * Prior approval of CCIT/ CIT required * OBH to be given to aa * Even if the books are audited earlier, again audit required * Time limit- Specified in order, however, not to extend 180 days * Audit fees- Paid by C.G. w.e.f. 1/06/2007 |
| 142 (3) | Opportunity Of Being Heard | aa shall be given an OBH in respect of material gathered on enquiry & proposed to be used for the purpose of assessment |
| 142A | Estimate by Valuation Officer in Certain Cases | *
A.O. may refer V.O. after giving OBH,
where a estimate is required to be made of value of investment refer to
in: - sec 69 - Unexplained Investment - sec 69 A - Unexplained money, etc. - sec 69 B - Investments not fully disclosed - sec 69 C - Unexplained expenditure * OBH shall be given to aa before taking report of V.O. into account |
| 143 (1) | Summary Assessment | Return
processed by making prima facie adjustments for * Arithmetical error * Incorrect claim apparent from record i.e. - an item inconsistent with another entry of same / some other item of return - information required to substain any entry in return not given - deduction taken over specified limits * Tax & Interest to be paid as per total income computed above * intimation shall be given to aa specifying amount due/ refund payable from/ to him on basis of above * However no intimation is required if there is no amount due/ refund payable and acknowledgement would be deemed as intimation * However, intimation is required if loss claimed is reduced * Time Limit for such intimation is upto expiry of 1 year from end of F.Y. in which return is filed |
| 143 (2) | Notice for Making Scrutiny/Regular Assessment | where
aa has furnished return and AO thinks it necessary or expedient to ensure
that aa has - not understated the income - not computed excessive loss - not under paid the tax in any manner shall furnish on aa a notice to attend his office on a specified date requiring him to produce any evidence on which aa may rely in support of his return * Time limit:- For serving notice - 6 months from end of FY in which ROI was filed |
| 143 (3) | Assessment Order In Case Of Scrutiny/Regular Assessment | *
After hearing aa and taking into consideration all documents/ materials
submitted by aa, AO will make an assessment of total income or loss of aa and
determine amount due/ refund payable to him * order of assessment shall be passed within 21 months from end of relevant AY * If case is referred to TPO then order of assessment shall be passed within 33 months from end of relevant AY |
| 1st & 2nd Proviso | Assessment In Special Cases | *
In case of institutions/ aa claiming exemption under clause 21, 22B, 23A,
23B, 23C of section 10 had contravened with its provisions * AO shall inform C.G. of such contravention * C.G. after giving OBH, is satisfied that the contravention has happened, shall withdrew the exemption * AO will then make assessment w/o considering this exemption and calculate tax payable |
| 144 | Best Judgment Assessment | *
If an aa has - - failed to make return - failed to comply with all the terms of a notice issued u/s. 142(1) or 142 (2A) - having made return failed to comply with all the terms of a notice issued u/s 143 (2) after taking into consideration all the material he has gathered shall, after giving the assessee an OBH, make the assessment of the total income or loss to the best of his judgment and determine the sum payable by the assessee * OBH shall be be given by serving a notice calling upon the aa to show cause, on a date and time to be specified in the notice, why the assessment should not be completed to the best of his judgment * Provided that it shall not be necessary to give such OBH in a case where a notice u/s 142 (1) has been issued prior to the making of an assessment under this section * Time Limit: for making order shall be before expiry of 21 months form end of RAY |
| 144A | Power Of JCIT To issue Directions in certain cases | JCIT
may * on his own motion or * reference made by either AO/aa, call for records and information of any proceeding which is pending for assessment, if he considers it nescessary or expedient to do so. * He may issue such guidance to AO to enable him to complete assessment * This guidelines are binding on AO * Where such guidelines are prejudical to aa - no such guidelines be issued before aa is given an OBH |
| 145 | Method of Accounting | *
Income chargeable u/h “PGBP" or “IOS” shall,be computed in accordance
with either cash or mercantile system of accounting regularly employed by the
assessee * The CG may notify in the Official Gazette from time to time accounting standards to be followed by any class of aa or in respect of any class of income * Where the AO is not satisfied about the correctness or completeness of the accounts of the assessee, or where the method of accounting or accounting standards, have not been regularly followed by the assessee, the AO may make an assessment in the manner provided in section 144 |
| 145A | Method of Accounting in certain cases | Notwithstanding
anything to the contrary contained in section 145, the valuation of purchase
and sale of goods and inventory for the purposes of determining the income
chargeable under the head “PGBP” shall be— - in accordance with the method of accounting regularly employed by the assessee; and - further adjusted to include the amount of any tax, duty, cess or fee (by whatever name called) actually paid or incurred by the assessee to bring the goods to the place of its location and condition as on the date of valuation. Explanation.— For the purposes of this section, any tax, duty, cess or fee (by whatever name called) under any law for the time being in force, shall include all such payment notwithstanding any right arising as a consequence to such payment (Meaning - even if cenvat credit is receivable the cost should include excise element) |
| 147 | Income Escaping Assessment | *
AO has REASON TO BELIEVE that income chargeable to tax has escaped assessment
for any AY, he may assess/ reassess such income or compute/recompute such
loss/ depreciation allowance * Proviso: However if assessment u/s 143 (3)/ 147 has already done for that AY, AO can't reassess income of AY after the end of 4 years from completion if RAY * Exception to above: - aa had failed to make return under provisions of sec 139, 142 (1) or 148 - aa had failed to disclose fully and truly all material facts * Doctrine of part merger: Issues which are subject matter of any appeal, revision or reference can't be reassessed |
| Explanation 2 to sec 147 | Income deemed to be escaping assessment | Income
is deemed to have escaped assessment--- * Where no return of income has been furnished by the assessee although his TI exceeded the BEL * Where a return of income has been furnished by the assessee but no assessment has been made and it is noticed by the Assessing Officer that the assessee has understated the income or has claimed excessive loss, deduction, allowance or relief in the return * Where an assessment has been made, but— - income chargeable to tax has been under assessed or - such income has been assessed at too low a rate or - such income has been made the subject of excessive relief under this Act or - excessive loss or depreciation allowance or any other allowance has been computed |
| 148 | Notice for Income Escaped Assessment | *
AO shall serve notice on aa requiring him to file a return of his income for
the PY mentioned in notice within such time as has been mentioned in the
notice * AO shall before issuing such notice record his reasons for doing so |
| 149 | Time limit for Notice u/s 148 | *
Within 4 years form end of RAY irrespective of amount escaped
assessment * Within 6 years form end of RAY only if amount escaped assessment is 1,00,00 or more |
| 150 | Provision for cases where Assessment is in Pursuance of an order on appeal, etc. | *
Notwithstanding anything contained in section 149, the notice under section
148 may be issued at any time in consequence of or to give effect to any
finding or direction contained in an order passed by any authority in any
proceeding under this Act or by a Court in any proceeding under any other
law * The above provisions shall not apply in any case where assessment relates to an assessment year in respect of which an assessment, reassessment or recomputation could not have been made at the time the order which was the subject-matter of the appeal, reference or revision was made, by reason of any other provision limiting the time within which any action may be taken |
| 151 | Sanction for issue of notice u/s 148 | *
Where assessment u/s 143 (3) / 147 has already taken place: - If income escaping assessment < 1,00,000 then by AC/DC or any other subordinate authority with permission of JCIT - If income escaping assessment >= 1,00,000 then by any AO with permission of CCIT/CIT * Where no assessment u/s 143 (3) / 147 has already taken place: - If income escaping assessment < 1,00,000 - Any AO - If income escaping assessment >= 1,00,000 - JCIT or any other subordinate authority with permission of JCIT |
| 152 | Other Provisions | *
In an reassessment u/s 147, the tax shall be chargeable at the rate or rates
at which it would have been charged had the income not escaped
assessment * Where the assessee has not impugned original order by appeal or revision, may claim that the proceedings under section 147 shall be dropped on showing that -- he had been assessed on an amount or to a sum not lower than what he would be rightly liable for even if the income alleged to have escaped assessment had been taken into account -- or the assessment or computation had been properly made |
| 153 (1), (1A), (1B), (2) | Time Limit for completion of Assessment & Reassessment | *
Assessment u/s 143 or 144 - within 21 months from end of RAY (if case refered
to TPO within 33 months from end of RAY) * Assessment u/s 115 WE (regular assessment of FBT) or u/s 115 WF (Best judgement assessment of FBT) - within 21 months from end of RAY * Assessment u/s 115 WG (Reassessment of FBT) - within 9 months form end of the month in which notice u/s 115 WH was served * Assessment u/s 147 - within 9 months form end of the month in which notice u/s 148 was served |
| 153 (2A) | De-Novo Assessment | *
If an order for fresh assessment is made in pursuance of an order u/s 254
(Order of ITAT), 263 & 264 (Revision order) then setting aside the
assessment made earlier, a fresh assessment would be made before - expiry of 9 months from the end of F.Y. in which order u/s 254 was received /order u/s 263, 264 was passed - expiry of 21months - If refered to TPO |
| 153A | Assessment in case of Search or Requistion | *
Where a search is initiated against u/s 132 AO shall - Issue notice to aa requiring him to file the return of 6 AYs preceeding the RAY - assess/ reassess total income in respect of such 6 Ays * All other assessment for this 6 years shall abate * Where the order of search assessment is annuled in appeal, then the above abated assessments shall be revived and if the order of search assessment annuled was set aside then all other assessments shall again abate * Where the assessment stands revived due to annulment of order of search - it shall be completed within 1 year from end of month of such revieval or within time allowed u/s 153, w.e.l |
| 153B | Time Limit for completion of Assessment u/s153A | Time
limit for search & requistion assessment - 21 months from end of FY in
which last of the authorizations for search was executed * However on happening of few circumstances the relevant period is excluded from computation of above time limit (eg:- where appication is made to settlement commision) |
| 153C | Assessment of Income of Any Other Person | *
Where AO is satisfied that money, bullion, jewellery or other valuable
article or documents seized belong/s to another person then such asset/
document shall be handed over to AO who has jurisdiction over such other
person * Such AO will issue the notice for assessment according to provisions of sec 153A * Time limit:- - 21 months from end of FY in which last of the authorizations for search was executed or - 9 months from end of FY in which such asset/ document were handed over to AO |
| 153D | Prior Approval Necessary for Assessment in cases of Search or Requisition | Approval of JCIT is required if assessment is carried on by any subordinate authority |
| 154 | Rectification of Mistake | *
With a view to rectify mistake apparent from the record an income tax
authority may ammend any order/ intimation u/s 143 (1) - On its own motion - On request of aa/ AO * rectification can not be sought on the order which are subject of appeal/ revision (Doctrine of part merger) * Time limit:- Before the expiry of 4 years from end of FY in whoch order sought to be ammended was passed. However, where the application is made by aa then the rectification order shall be passed/ application shall be refused within 6 months from end of month in which application was made * Where an revision order has effect of increasing tax/ reducing refund- then aa shall be given notice and OBH |
| 155 | Other Amendments | In
few cases the time limit of 4 years given in section 154 is no to be applied
from end of FY in which order was passed * For eg:- Rectification in hands of Partner would be made before the expiry of 4 years from end of FY in which order was passed for firm |
| 156 | Notice of Demand | *
When any tax, interest, penalty, fine or any other sum is payable in
consequence of any order passed under this Act, the AO shall serve upon the
aa a notice of demand in the prescribed form specifying the sum so
payable * Where any sum is determined to be payable by the aa u/s 143(1), the intimation under that section shall be deemed to be a notice of demand for the purposes of this section |
| 157 | Intimation of Loss | When in the course of the assessment it is established that a loss has taken place which the aa is entitled to have carried forward and set off under the provisions of act, the AO shall notify to the assessee by an order in writing the amount of the loss as computed by him for this purpose |
| 158 | Intimation of assessment of firm | Whenever,
a firm is assessed under the provisions of act AO shall notify to the firm by
an order in writing the amount of its total income assessed and the
apportionment thereof between the several partners For the Short Notes in Excel Format Click Here |
Short Notes on Assessment Procedure
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