section 143(2)

Consequences of failure to respond to Section 143(2) notice

Income Tax -  1. What is Sec 143(2)? Where a return has been furnished u/s 139, or in response to a notice 142(1), the Assessing Officer (AO) or the prescribed income-tax (IT) authority, as the case may be, if, considers it necessary or expedient: ♦ to ensure that the assessee has not understated the income or has not […]...

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Section 143(1)(a)(i) intimation not required on commencement of regular Section 143(2) assessment

Income Tax - On commencement of regular assessment proceedings u/s 143(2) of Act , there is no need for intimation u/s 143(1)(a)(i) Where the summary procedure under section 143(1)(a)(i) has been adopted, there is scope available for the revenue to make assessment u/s 143(3) of the Act. But the converse is not available. A regular assessment proceedin...

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Draft Submission | Notice U/S 143(2) Not Valid if Return Filed in Response to Notice U/S 148 Not Recognized by AO

Income Tax - Notice U/S 143(2) Not Valid if Return Filed in Response to Notice U/S 148 Not Recognized by AO. Draft Written Submissions Written submission before the Hon’ble CIT(Appeals), XXXX bad in the case of Sh. XXXXXXXXXXX, XXXXXXX for the A.Yr. 2011-12. The assesse is an individual. He is doing business of trading of building material durin...

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Income tax Notice under section 143(2) for AY 2020-21

Income Tax - Off let Income tax Department has started issuing notices under section 143(2) of the Income tax Act, 1961 (Act) for the AY 2020-21 through online mode or through National e-Assessment Facilitation Center highlighting certain issues for which case has been selected for scrutiny assessment proceedings. Let us understand the aspects of the ...

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Section 147 proceedings not identical to section 143(2) proceedings

Income Tax - In this article it is tried to explain that proceedings under section 147 are not identical to proceedings under section 143(2). Due to use of word AND in main limb of section 147 and also in explanation 3 (highlighted) in a number of cases addition made on secondary issue which came on the file of […]...

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Notice u/s. 143(2) should be issued within one year from the date of filing of block return if A.O. rejects the same

Income Tax - The Supreme Court has ruled that it is mandatory for the Income Tax Department to issue notice within the prescribed time limit of one year where the assessing officer in repudiation of the block return filed by the assessee proceeds for an inquiry....

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Assessment based on belated Section 143(2) notice is invalid

Roshan Lal Verma Vs DCIT (ITAT Delhi) - Roshan Lal Verma Vs DCIT (ITAT Delhi) The validity of impugned assessment order resulting in present appeal is under challenge on the grounds of notice issued under Section 143(2) purportedly barred by limitation. It is the case of the assessee that, in the instant case, assessee has filed the retur...

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Limited scrutiny- AO cannot go beyond dispute raised in section 143(2) notice

Chaitanya Bansibhai Nagori Vs Principal Commissioner of Income Tax (ITAT Ahmedabad) - Jurisdiction of AO in cases where section 143(2) notices issued for limited scrutiny is confined to claims AO set out in notice...

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Failure to issue Section 143(2) notice cannot be condoned under Section 292BB

PCIT Vs Consortium Nussli Comfort Net (Delhi High Court) - PCIT Vs Consortium Nussli Comfort Net (Delhi High Court) Supreme Court in Commissioner of Income-Tax vs. Laxman Das Khandelwal (supra) has clearly stated that the scope of Section 292BB is to make service of notice having certain infirmities to be proper and valid. However, the section does not save...

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Issuance of Section 143(2) notice mandatory in Section 153A proceedings

ACIT Vs Dr. P. S. Prasad (ITAT Hyderabad) - ACIT Vs Dr. P. S. Prasad (ITAT Hyderabad) Learned CIT-DR vehemently reiterated the Revenue’s foregoing pleadings that the issuance of Section 143(2) notice is nowhere mandatory in Section 153A proceedings initiated in furtherance to a search in light of the various case law cited therein. We find ...

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Failure to issue section 143(2) notice prior to finalising reassessment order makes reassessment proceedings a nullity

ACIT Vs P & R Infraprojects Ltd. (ITAT Delhi) - ACIT Vs P & R Infraprojects Ltd. (ITAT Delhi) A perusal of the assessment order as well as the order of the CIT(A) shows that no notice u/s 143(2) was ever issued to the assessee before completing the assessment u/s 143(3)/147. It is the submission of the ld. Counsel that it is mandatory to issu...

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CBDT notifies Prescribed Income-tax Authority’ under Section 143(2) for Returns

Notification No. 25/2021-Income-tax [S.O. 1437(E).] - (31/03/2021) - CBDT hereby authorises the Assistant Commissioner of Income-tax/Deputy Commissioner of Income-tax (NaFAC) having her / his headquarters at Delhi, to act as the ‘Prescribed Income-tax Authority’ for the purpose of sub-section (2) of section 143 of the Act, in respect of returns furnished under se...

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Revised format of Issue of notices U/s. 143(2) of Income-tax Act, 1961

Notification No. F.No. 225/157/2017/ITA.II-Income Tax - (23/06/2017) - The three formats of notice(s) are: Limited Scrutiny (Computer Aided Scrutiny Selection}, Complete Scrutiny (Computer Aided Scrutiny Selection), Compulsory Manual Scrutiny The revised format of 143(2) notice(s) with a note on benefits & Procedures of' E-Proceeding' facility are enclosed for infor...

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CBDT revises format of Issue of Income Tax notices U/s. 143(2)

F.No. 225/162/2016/ITA.II - (11/07/2016) - Central Board of Direct Taxes, with approval of the Revenue Secretary, has decided to modify notice under section 143(2) of the Income-tax Act. Henceforth, there shall be three formats of the said notice namely: Limited Scrutiny, Complete Scrutiny, Manual Scrutiny...

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No processing of returns for I-T refund if selected for Scrutiny

Instruction No.1/2015 - (13/01/2015) - Instruction No.1/2015 Clarification regarding applicability of section 143(1D) of the Income-tax Act, 1961- Vide Finance Act, 2012, section 143(1D) was introduced in income tax act which prohibited processing of income tax returns in case notice u/s 143(2) has been issued (i.e. scrutiny cases). Ambi...

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CBDT allows issue of Refund Intimation U/s. 143(1) beyond time

Instruction No. 18/2013 - (17/12/2013) - Several instances have come to the notice of the Board Where due to certain technical or other reasons (which inter-alia included wrong migration of PAN and delayed release of returns by the Centralized Processing Cell to the jurisdictional authorities), intimation in refund cases could not be sent ...

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Recent Posts in "section 143(2)"

Assessment based on belated Section 143(2) notice is invalid

Roshan Lal Verma Vs DCIT (ITAT Delhi)

Roshan Lal Verma Vs DCIT (ITAT Delhi) The validity of impugned assessment order resulting in present appeal is under challenge on the grounds of notice issued under Section 143(2) purportedly barred by limitation. It is the case of the assessee that, in the instant case, assessee has filed the return of income on 14.10.2011 and […]...

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Limited scrutiny- AO cannot go beyond dispute raised in section 143(2) notice

Chaitanya Bansibhai Nagori Vs Principal Commissioner of Income Tax (ITAT Ahmedabad)

Jurisdiction of AO in cases where section 143(2) notices issued for limited scrutiny is confined to claims AO set out in notice...

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Failure to issue Section 143(2) notice cannot be condoned under Section 292BB

PCIT Vs Consortium Nussli Comfort Net (Delhi High Court)

PCIT Vs Consortium Nussli Comfort Net (Delhi High Court) Supreme Court in Commissioner of Income-Tax vs. Laxman Das Khandelwal (supra) has clearly stated that the scope of Section 292BB is to make service of notice having certain infirmities to be proper and valid. However, the section does not save complete absence of notice. For section...

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Issuance of Section 143(2) notice mandatory in Section 153A proceedings

ACIT Vs Dr. P. S. Prasad (ITAT Hyderabad)

ACIT Vs Dr. P. S. Prasad (ITAT Hyderabad) Learned CIT-DR vehemently reiterated the Revenue’s foregoing pleadings that the issuance of Section 143(2) notice is nowhere mandatory in Section 153A proceedings initiated in furtherance to a search in light of the various case law cited therein. We find no merit in the Revenue’s instant grie...

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Failure to issue section 143(2) notice prior to finalising reassessment order makes reassessment proceedings a nullity

ACIT Vs P & R Infraprojects Ltd. (ITAT Delhi)

ACIT Vs P & R Infraprojects Ltd. (ITAT Delhi) A perusal of the assessment order as well as the order of the CIT(A) shows that no notice u/s 143(2) was ever issued to the assessee before completing the assessment u/s 143(3)/147. It is the submission of the ld. Counsel that it is mandatory to issue […]...

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Consequences of failure to respond to Section 143(2) notice

 1. What is Sec 143(2)? Where a return has been furnished u/s 139, or in response to a notice 142(1), the Assessing Officer (AO) or the prescribed income-tax (IT) authority, as the case may be, if, considers it necessary or expedient: ♦ to ensure that the assessee has not understated the income or has not […]...

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Posted Under: Income Tax |

No section 143(2) notice requirement if no valid filed return filed by Assessee

Rakesh Aggarwal Vs ITO (ITAT Delhi)

When there was no valid return available before AO as assessee neither filed original return under section 139(1) nor filed any return in response to the notice issued under section 148 within the prior limit of 30 days as stated in the notice under section 148, there is no requirement of issuance of notice under section 143(2)....

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Section 143(1)(a)(i) intimation not required on commencement of regular Section 143(2) assessment

On commencement of regular assessment proceedings u/s 143(2) of Act , there is no need for intimation u/s 143(1)(a)(i) Where the summary procedure under section 143(1)(a)(i) has been adopted, there is scope available for the revenue to make assessment u/s 143(3) of the Act. But the converse is not available. A regular assessment proceedin...

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Posted Under: Income Tax |

Draft Submission | Notice U/S 143(2) Not Valid if Return Filed in Response to Notice U/S 148 Not Recognized by AO

Notice U/S 143(2) Not Valid if Return Filed in Response to Notice U/S 148 Not Recognized by AO. Draft Written Submissions Written submission before the Hon’ble CIT(Appeals), XXXX bad in the case of Sh. XXXXXXXXXXX, XXXXXXX for the A.Yr. 2011-12. The assesse is an individual. He is doing business of trading of building material durin...

Read More
Posted Under: Income Tax |

Income tax Notice under section 143(2) for AY 2020-21

Off let Income tax Department has started issuing notices under section 143(2) of the Income tax Act, 1961 (Act) for the AY 2020-21 through online mode or through National e-Assessment Facilitation Center highlighting certain issues for which case has been selected for scrutiny assessment proceedings. Let us understand the aspects of the ...

Read More
Posted Under: Income Tax |

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