TYPES OF ASSESSMENT :
- Inquiry before Assessment Section 142(1)
- Summary Assessment Section 143(1)
- Scrutiny Assessment Section 143(3)
- Best Judgment Assessment Section 144
- Reassessment Section 147
- Search Assessment Section 153A
- Others not as per Act, Evolved per convention
Inquiry before Assessment –142(1)
A.O. can serve notice to the assesses for the following purposes:
- Submit return of income.
- Produce such documents/accounts as may be required.
- Furnish information on required matters.
If a person has not furnished his return of income
within the due date given under section 139(1), the
A.O. can serve a notice under section 142(1)(i) at
any time after the expiry of time limit given under
section 139(1)
Inquiry before Assessment
- For the purpose of obtaining full information in respect of the income or loss of any person, the Assessing Officer may make such enquiry as he considers necessary
- Special Audit u/s 142[2A], An opportunity less traveled by CA’s.
Having regard to nature and complexity
of accounts and in the interest of
Revenue.
Procedure.
Natural Justice.
Duty of Special Auditor.
Time for Submission of Report, extension, etc.
Remuneration for Special Audit.
Summary Assessment
- 143[1], pre-amendment, permissible adjustments
- 143[1], present status.
- Appellate under section 246A?
- No intimation can be issued after issue of notice u/s 143(2)- Gujarat Electricity Board 260 ITR 84 (SC).
- Intimations from CPC, amendment u/s 156.
Scrutiny Assessment-143[3]
- To ensure that the assesses has not, Understated the income; or Computed excessive loss; or Underpaid the tax
- Time limit of service of notice
Within 6 months from end of the AY/end of the FY in which ROI filed.
- Reasons to believe qua 143(2) notice–N.R. Paper and Board 234 ITR 733.
- Annual Scrutiny Guidelines—Access/RTI.
- 143(2) in case no return filed? Individual Vs. ITO.
- Revised Return, Fresh 143(2).
Issues in Assessment:
CAPITAL EXPENDITURE VS REVENUE
EXPENDITURE :
- SETTING UP AND ROYALTY ON SALES
- SOFTWARE EXPENDITURE
- EXPENDITURE ON LEASED PREMISES
- INTEREST EXPENDITURE ON NEW PROJECT
- SETTING OF EXPENDITURE AGAINST PRE-COMMENCEMENT INCOME
- COST OF ABANDONED PROJECT
- PRIOR PERIOD EXPENDITURE
- LOSS OF RE-POSSESSED ASSETS
Issues in Assessment SECTION 68
- Share capital
- Loans,
- Capital receipts
- Sundry creditors
- Common sense approach and use of departmental tools.
Issues in Assessment
- Deemed Dividends.
- Section 56[2], gifts.
- 43B.
- Royalty.
- Stock Statements.
- GP/NP, trading additions.
- 40(a)(ia)—partial deduction/ capital items, etc.
- 40A(2)(b)- payments to related parties.
- 41[1].
- Bad Debts.
- Interest on borrowed capital. 37[1] v/s 57[1]
- Section 14A.
- Incentive Deductions
Precautions in Assessment :
- Punctuality.
- Promptness and knowledge of the case.
- Noting of order sheet.
- Cryptic and relative reply.
- Humble-ness
- Raise alternative arguments.
- Know your rights.
- Acknowledgement of replies.
- Keep windows/vistas open.
- Paging and sequential order
- Submit written replies.
- Refer past assessments, in case required.
- Fact-um of production of Books of accounts