section 143(3)

Various Type of Assessment & amp; Study of Best Judgement Assessment

Income Tax - Self assessment - The assessee is required to make a self assessment and pay the tax on the basis of the returns furnished. Any tax paid by the assessee under self assessment is deemed to have been paid towards regular assessment. Regular assessment - On the basis of thereturn of income chargeable to tax furnished by the assessee an intim...

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Scrutiny assessment under Income Tax Act, 1961

Income Tax - The Scrutiny Assessments under Income Tax Act 1961 are made u/s 143(3). For many years now many of the returns of the assesses are accepted as they are being filed by the assesses and intimation is sent u/s 143(1) and only fewer cases are selected for scrutiny assessment based upon some predetermined criterias. Therefore every assessee de...

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Understanding Section 143 of Income Tax Act, 1961

Income Tax - An assessee is required to file an income tax return under Section 139 or in response to notice under section 142, consisting all the details of income earned during the previous year. Once the return is filed the next step of Income tax department is to examine the return for its correctness. This examination is known as Assessment....

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How to reply to different income tax notices

Income Tax - These days people are getting different types of notices/intimations from the Income Tax department by different modes such as delivery by post or by an e-mail. This article aims to highlight the different situations in which income tax notices can be received and how to respond to those notices if anyone receives the same. ...

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Assessments under Income-Tax Act, 1961

Income Tax - Every taxpayer has to furnish the details of his income to the Income-tax Department. These details are to be furnished by filing up his return of income. Once the return of income is filed up by the taxpayer, the next step is the processing of the return of income by the Income Tax Department. ...

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Allow making of fresh claim during assessment proceedings

Income Tax - It has been observed that in many cases an assessee may wish to make a claim which was not made in the return of income filed under section 139. Where the assessee makes a claim of any expenditure or a deduction during the assessment proceedings which had not been made in the return of income […]...

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Format of details to submitted during Income Tax Assessment

Income Tax - We have attached a file in excel format. The file contains the format of various details which normally assessing officer asks Assessee to furnish during Scrutiny Assessment U/s. 143(3) of the Income Tax Act, 1961. We have attached the format of following details :-...

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Valid issuance of notice u/s 143(2) mandatory for framing scrutiny assessment

Balaji Enterprise Vs ACIT (ITAT Guwahati) - Balaji Enterprise Vs ACIT (ITAT Guwahati) The case of the assessee was reopened u/s 148 by the ACIT, Investigation, Delhi, on the basis of CBI search. When the question of jurisdiction came before the Hon’ble High Court, it was held that where the assessee shifts his residence etc., the AO of ...

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ITAT upheld Penalty u/s 271AAB(1) on Undisclosed Investment

Pawan Mundra Vs DCIT (ITAT Jaipur) - Pawan Mundra Vs DCIT (ITAT Jaipur) The issue under consideration whether AO is justified levying penalty under section 271AAB on failure to offer explanation about the source of the undisclosed investment in land? ITAT states that during course of post search proceedings, assessee admitted an income...

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Assessment Order u/s 143(3) Passed in Clear Breach of Mandatory Section 144C is Void ab Initio

Gigabyte Technology (India) Private Ltd. Vs CIT (Bombay High Court) - The issue under consideration is whether the assessment order u/s 143(3) made by the AO in clear breach of the mandatory provisions of Section 144C is merely erroneous or is void ab initio?...

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Appeal not Justified if there is Lack of Strong Contrary Evidence

Sudhakar Motiram Kadam Vs ITO (ITAT Pune) - The issue under consideration is whether the assessee can challenge the order of AO for which he has agreed before without there being any contrary evidence?...

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Serving of Notice on Wrong Address is as good as Not Issuing Notice to Assessee

ITO Vs Ajay Raj (ITAT Delhi) - ITO Vs Ajay Raj (ITAT Delhi) The issue under consideration is whether the notice u/s 143(2) served on wrong address is sustainable in law? ITAT states that, the notice u/s 143(2) of the Act was issued to the address at “85, Kumharon Wali Gali, Village Khampur, Delhi” which was not served on the ...

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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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Recent Posts in "section 143(3)"

Valid issuance of notice u/s 143(2) mandatory for framing scrutiny assessment

Balaji Enterprise Vs ACIT (ITAT Guwahati)

Balaji Enterprise Vs ACIT (ITAT Guwahati) The case of the assessee was reopened u/s 148 by the ACIT, Investigation, Delhi, on the basis of CBI search. When the question of jurisdiction came before the Hon’ble High Court, it was held that where the assessee shifts his residence etc., the AO of the place where the […]...

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ITAT upheld Penalty u/s 271AAB(1) on Undisclosed Investment

Pawan Mundra Vs DCIT (ITAT Jaipur)

Pawan Mundra Vs DCIT (ITAT Jaipur) The issue under consideration whether AO is justified levying penalty under section 271AAB on failure to offer explanation about the source of the undisclosed investment in land? ITAT states that during course of post search proceedings, assessee admitted an income of Rs. 6,00,000 on account of undisclos...

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Assessment Order u/s 143(3) Passed in Clear Breach of Mandatory Section 144C is Void ab Initio

Gigabyte Technology (India) Private Ltd. Vs CIT (Bombay High Court)

The issue under consideration is whether the assessment order u/s 143(3) made by the AO in clear breach of the mandatory provisions of Section 144C is merely erroneous or is void ab initio?...

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Various Type of Assessment & amp; Study of Best Judgement Assessment

Self assessment - The assessee is required to make a self assessment and pay the tax on the basis of the returns furnished. Any tax paid by the assessee under self assessment is deemed to have been paid towards regular assessment. Regular assessment - On the basis of thereturn of income chargeable to tax furnished by the assessee an intim...

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Posted Under: Income Tax |

Appeal not Justified if there is Lack of Strong Contrary Evidence

Sudhakar Motiram Kadam Vs ITO (ITAT Pune)

The issue under consideration is whether the assessee can challenge the order of AO for which he has agreed before without there being any contrary evidence?...

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Serving of Notice on Wrong Address is as good as Not Issuing Notice to Assessee

ITO Vs Ajay Raj (ITAT Delhi)

ITO Vs Ajay Raj (ITAT Delhi) The issue under consideration is whether the notice u/s 143(2) served on wrong address is sustainable in law? ITAT states that, the notice u/s 143(2) of the Act was issued to the address at “85, Kumharon Wali Gali, Village Khampur, Delhi” which was not served on the assessee whereas […]...

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Conversion from Limited to Complete Scrutiny Not Allowed Prior to Receipt of Approval from PCIT

Manju Kaushik Vs DCIT (ITAT Jaipur)

The issue under consideration is whether the conversion of case from limited scrutiny to complete scrutiny prior to receipt of approval from Pr. CIT is justified in law?...

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Scrutiny assessment under Income Tax Act, 1961

The Scrutiny Assessments under Income Tax Act 1961 are made u/s 143(3). For many years now many of the returns of the assesses are accepted as they are being filed by the assesses and intimation is sent u/s 143(1) and only fewer cases are selected for scrutiny assessment based upon some predetermined criterias. Therefore every assessee de...

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Depreciation charge must to Claim Section 80IB Deduction

Betts India (P) Ltd. Vs. ACIT (Bombay High Court)

whether depreciation is mandatory to be granted while determining the Appellant's entitlement to the deduction under Section 80IB of the Act, even though the Appellant had not claimed such depreciation?...

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Assessment Order Passed without Serving Notice u/s 143(2) on Correct Address as per ITR is Invalid

Shri Abhishek Acharya Vs ITO (ITAT Mumbai)

The issue under consideration is whether the assessment order passed without serving of the notice u/s 143(2) on correct address as mentioned in ITR is considered as Valid order?...

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Income from Foreign Asset Earned through Pension mentioned in FA Schedule is Not Taxable in India

Sankha Mukherjee Vs ACIT (ITAT Kolkata)

The issue under consideration is whether the addition on the income from foreign asset earned through the retirement plan mentioned in FA schedule is taxable in India or not?...

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ITAT remand back Matter to AO for Re-Examination of Relocation Expense & Related TDS Compliance

American Express (I) P. Ltd. Vs DCIT (ITAT Delhi)

The issue under consideration is whether disallowance of relocation expenses u/s 40(a)(i) of the Act and non granting of tax deducted at source with respect to that expense is justified in law?...

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Percentage Completion Method for Revenue Recognition not mandatory for Construction Companies till AY 2016-17

Hi-tech Estates & Promoters Pvt Ltd. Vs PCIT (ITAT Cuttack)

The issue under consideration is whether as per Section 43CB, profits and gains of a construction company mandatorily be determined on the basis of percentage completion method for revenue  recognition?...

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Section 54F exemption on gain from House Constructed on own land

Rajesh Kumar Adukia Vs DCIT (ITAT Ranchi)

Whether A.O. is right in dismissing the claim of the assessee u/s. 54F of the Act on the ground that residential flat was not constructed after the date of transfer and they were constructed alongwith saleable flats?...

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Section 143(2) Notice in Dead Person Name is unsustainable in Law

Sumit Balkrishna Gupta Vs ACIT (Bombay High Court)

Sumit Balkrishna Gupta Vs ACIT (Bombay High Court) The issue under consideration is whether the issuing of a notice u/s 143(2) in the name of the wrong person is sustainable in law? High Court states that it is a fact that the petitioner had filed return for the assessment year 2016-17 in the name of […]...

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Expenditure on Hotel Rooms Renovation & Redecoration is Revenue Expense

Pandian Hotels Ltd. Vs DCIT (Madras High Court)

The issue under consideration is whether the expenditure incurred in renovation and redecoration of rooms in a hotel is a revenue expenditure or capital expenditure?...

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Assessment reopening based on Wrong Appreciation of Facts is unsustainable

RMP Holding (P) Ltd. Vs ITO (ITAT Delhi)

The issue under consideration is whether the re-opening of assessment u/s 147 on the basis of wrong appreciation of facts can be sustained in law?...

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Bogus Purchase: Addition on peal credit basis for Low Margin & Low Vat Rate Items unjustified

Ashok S Vakharia HUF Vs ITO (ITAT Mumbai)

The issue under consideration is whether the CIT(A) is correct in confirming addition u/s 69C of the Act on account of unexplained purchases made during the year, calculated on the basis of peak credit?...

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If section 69 not invoked by AO in Order u/s 143(3) then section 115BBE can’t invoked for rectification u/s 154

ACIT Vs Shri Sudesh Kumar Gupta (ITAT Jaipur)

whether CIT(A) is justified in quashing the action of the AO u/s 154 of the Act in applying provision of section 115BBE of the IT Act on undisclosed investment surrendered during the course of survey proceedings?...

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ITAT allows depreciation on expansion expenditure treating the same as Capital

Mahindra & Mahindra Limited Vs DCIT (ITAT Mumbai)

The issue under consideration is whether the expenditure incurred by the assessee for the expansion will be considered as Capital Expenditure and allowability of the depreciation on the same?...

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Understanding Section 143 of Income Tax Act, 1961

An assessee is required to file an income tax return under Section 139 or in response to notice under section 142, consisting all the details of income earned during the previous year. Once the return is filed the next step of Income tax department is to examine the return for its correctness. This examination is known as Assessment....

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Posted Under: Income Tax |

Reopening of assessment merely on Internal Audit Objection Not Justified

Lionbridge Technologies P. Ltd. Vs ACIT (ITAT Mumbai)

Whether the re-opening of assessment u/s 147 initiated by AO is justified in law? Re-opening of assessment on basis of Internal Audit Objection Not Justified....

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Set off of Brought Forward Losses of Merged Division in Revised Return allowed by ITAT

ACIT Vs Padma Logistics & Khanij Pvt. Ltd (Madras High Court)

ACIT Vs Padma Logistics & Khanij Pvt. Ltd (Madras High Court) The issue under consideration is whether the set off of brought forward losses and unabsorbed depreciation of merged division in revised return is justified in law?  In present case, the assessee Company had filed the original return of income on 28.09.2010 showing total i...

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No conversion from limited to complete scrutiny on mere suspicion 

Dev Milk Foods Pvt. Ltd. Vs ACIT (ITAT Delhi)

The issue under consideration whether conversion of the case from limited scrutiny to complete scrutiny is justified in law?...

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High rate Depreciation Not allowed on vehicles used for Advertisement

Tapan Kumar Biswas Vs ITO (ITAT Kolkata)

Whether the higher rate of depreciation can be granted to the vehicles used for the display of advertisement under the provisions of the Income Tax Act, 1961....

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Accommodation entry Business- Entire deposits cannot be assessed as unexplained cash credits.

PCIT Vs Alag Securities Pvt. Ltd. (Bombay High Court)

In the present case, Assessee is engaged in the business of providing accommodation entries to entry seekers. During the assessement proceedings AO held that the identity of the parties involved in the transactions were not furnished as well as genuineness of the transactions relating to total cash deposits were not satisfactorily explai...

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Online Coaching is Education u/s 2(15) & eligible for tax Exemption

NIIT Foundation Vs CIT (ITAT Delhi)

NIIT Foundation Vs CIT (ITAT Delhi) Online Coaching considered as Education u/s 2(15) hence eligible for Exemption under section 11/12 The issue under consideration is whether the CIT(A) is correct in holding that the activity carried out by the Appellant is not in the nature of ‘education’ within the meaning of Section 2(15) ...

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IPA received as Subsidy is Capital in nature & hence Not Taxable

DCIT Vs SovaIspat Limited (ITAT Kolkata)

The issue under consideration is whether industrial Promotion Assistance (IPA) received by the assessee-Company from the West Bengal Government is taxable under income tax?...

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A.O. cannot refer the matter to DVO to reduce FMV

Shri Dinesh Khodidas Patel HUF Vs ITO (ITAT Ahmadabad)

Shri Dinesh Khodidas Patel Vs ITO (ITAT Ahmadabad) The issue under consideration is whether A.O. is correct in referring the matter to DVO to find FMV by rejecting valuation report submitted by assessee? In the present case, assessee sold a land along with others co-owners. It had submitted the valuation report as on 1-4-1981 of […...

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Section 55: AO cannot reject valuation report without proving lesser valuation

DCIT Vs Ajanta Tubes Ltd. (ITAT Delhi)

DCIT Vs Ajanta Tubes Ltd. (ITAT Delhi) The issue under consideration is whether the A.O. is correct in rejecting the valuation report obtained by the assessee? In the present case, assessee had sold its land and building. Assessee had taken the cost of acquisition for land as per valuation report as at 1-4-1981 as against […]...

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Final assessment order U/s 144C without issuing draft order is Void-ab-Initio

Nikon India Pvt. Ltd. Vs DCIT (ITAT Delhi)

Nikon India Pvt. Ltd. Vs DCIT (ITAT Delhi) The issue under consideration is whether the assessment will sustain even if the Assessing Officer ignoring the statutory provisions of section 144C, passed the Final assessment order without issuing draft assessment order to the assessee? In the present case, the Tribunal vide order dated 31.03....

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No Section 271AAB Penalty on Income voluntarily admitted during Search

Ajanta Pharma Limited Vs DCIT (ITAT Mumbai)

The issue under consideration is whether the penalty levied u/s 271AAB of the Act is justified on Income voluntarily admitted during Search by Appellant?...

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MSBTE is ‘State’ under Indian Constitution & Exempt from Income Tax

Maharashtra State Board of Technical Education Vs ITO (ITAT Mumbai)

The issue under consideration is whether CIT(A) is correct in holding that the appellant is not a state under Article 289 of the Constitution of India and therefore, liable to tax under the Income Tax Act?...

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No section 147 notice based on material already presented during section 143(3) assessment

Audhut Timblo Vs ACIT (Bombay to Goa High Court)

The issue under consideration is whether A.O. is correct in issuing Notice under section 147 for re-opening of assessment irrespective of the fact that the material on which he relied is already present in front of him at the time of assessment u/s 143(3)?...

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Assessment without Section 143(2) notice is not justified in law 

ITO Vs Satish Singh Bhati (ITAT Delhi)

The issue under consideration is whether CIT(A) is correct by annulling the assessment order on the ground that no notice under section 143(2) was issued before the completion of assessment?...

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How to reply to different income tax notices

These days people are getting different types of notices/intimations from the Income Tax department by different modes such as delivery by post or by an e-mail. This article aims to highlight the different situations in which income tax notices can be received and how to respond to those notices if anyone receives the same. ...

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Posted Under: Income Tax | ,

Assessments under Income-Tax Act, 1961

Every taxpayer has to furnish the details of his income to the Income-tax Department. These details are to be furnished by filing up his return of income. Once the return of income is filed up by the taxpayer, the next step is the processing of the return of income by the Income Tax Department. ...

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Reopening of assessment without bringing any fresh material on record is not justified

Chordia Buildcon Pvt. Ltd. Vs DCIT (ITAT Jaipur)

Chordia Buildcon Pvt. Ltd. Vs DCIT (ITAT Jaipur) The issue under consideration is whether the action taken by the AO u/s 147 r.w.s 148 is justified in law? The case of assessee was originally selected for scrutiny and a detailed questionnarie was issued alongwith notice u/s 142(1). The AO asked specific queries with regard to […]...

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No Section 263 revision for difference of opinion between AO & CIT

Maharashtra Engineering Vs PCIT (ITAT Pune)

Issues have been examined by the A.O and just because the opinion as arrived by the A.O is at a variation of the opinion of the learned Pr. CIT, would not grant the learned Pr. CIT the powers of revision u/s 263 of the Act....

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FAQs on Assessments under the Income-tax Law

Every taxpayer has to furnish the details of his income to the Income-tax Department. These details are to be furnished by filing his return of income. Once the return of income is filed by the taxpayer...

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Posted Under: Income Tax |

No Section 147 Assessment in absence of reasons for escapement of income

Kailash Kanhaiyalal Gidwani Vs ACIT (ITAT Pune)

Existence of reasons for escapement of income are sine qua non to embark upon the assessment or reassessment u/s 147 of the Act. Change or no change of opinion, as argued by the ld. DR, are the factors to be considered after fulfilling the jurisdictional condition of there being an escapement of income, in the absence of which no assessme...

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Online Rectification Request to rectify intimation U/s. 143 (1) from CPC, Bangalore

If you are thinking of seeking rectification of the intimation issued by Centralized Processing Center at Bangalore, then you must carefully review the Common Error Guide and the typical causes of error presented below in order to prepare an accurate...

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Section 80IAB deduction allowed against rental income from SEZ development

Cessna Garden Developers Pvt. Ltd. Vs ACIT (ITAT Bangalore)

The issue under consideration is whether deduction under section 80IAB will be allowed against the income of lease/ rental income from development of SEZ irrespective of wrong classification of head of income....

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Treatment of fresh claim of assessee before completion of assessment

Whether an assessing officer is required to entertain and consider a fresh claim or a modification in a claim made at any time before the completion of assessment u/s 143(3) of the income-tax act....

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In case of dual views, view adopted by A.O. is valid & cannot be called erroneous

CIT Vs A.R.Builders & Developers P Ltd, (Madras High Court)

The issue under consideration is that, when two views are possible and A.O. adopt one of the view and passed his order accordingly. But that view is not acceptable by PCIT, in such case can PCIT adopt its one of the other views and call the order of A.O. the erroneous?...

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Section 143(3) of Income Tax Act – Scrutiny Assessment –FAQ’s

Dear Readers, now these days Income Tax Department is very active in tax collection matters to achieve their targeted collection. Income Tax law mainly permits self-Assessment by assesse, related to their Income Tax Liability, however, from huge database of assesses limited numbers of returns are selected for scrutiny assessment. Now, Inc...

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No more interactions with tax officials! I-T Dept goes online with scrutiny work!

CBDT has issued instruction dated 12th February 2018 to conduct assessment proceedings in scrutiny cases electronically, saying that except for search-related assessments, proceedings in other pending scrutiny assessment cases shall be conducted only through the E-proceeding functionality in ITBA/e-filing....

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Jurisdiction Free Assessment under Income Tax Act, 1961

This article is covering in depth knowledge of various types of Jurisdictions, Various types of Assessments under Income Tax Act, 1961 and details of new system i.e. Jurisdiction-Free Assessment which was introduced from 2016. Jurisdiction is prescribed under Section 124 of the Income-tax Act, 1961 and assessment includes Summary assessme...

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AIR (Annual Information Report) and Scrutiny Assessment u/s 143(3)

n the era of technology and data analytics, Income Tax Department too empowered itself with one of the most enabling report which allowed itself to peep itself into the assessee’s deeper secrets by laying down the responsibility on Financial Institution like Banks, Mutual Funds, to submit AIR (Annual Information Report). In this article...

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Posted Under: Income Tax |

Various Assessments Under The Income Tax Law

Every taxpayer has to furnish the details of his income to the Income-tax Department. These details are to be furnished by filing up his return of income. Once the return of income is filed up by the taxpayer, the next step is the processing of the return of income by the Income Tax Department. The […]...

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AO justified in sending notice at address mentioned in PAN database

PCIT Vs. M/s I­-Ven Interactive Limited (Supreme Court)

Mere mentioning of the new address in the return of income without specifically intimating the Assessing Officer with respect to change of address and without getting the PAN database changed, is not enough and sufficient....

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Addition on non-CASS issues without obtaining due permission from superior authorities not sustainable

Nazare Vikas Karyakari Seva Shakari Society Ltd Vs ITO (ITAT Pune)

Addition on non-CASS issues made without obtaining due permission from superior authorities was in contravention of CBDT guidelines and, therefore, could not be sustained....

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Recording of reasons to believe & not reasons to suspect is pre-condition of section 147

Purnima Komalkant Sharma Vs DCIT (Gujarat High Court)

Purnima Komalkant Sharma Vs DCIT (Gujarat High Court) In the given case, the petitioner is an individual and engaged in the business of real estate and transportation and ship breaking. The return of income was accepted without any scrutiny. Thereafter, a search action took place at the premises of the petitioner. Upon conclusion of such...

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Types of Income Tax Notices

We become surprised when we receive any intimation or notice from Income tax department even when we have successfully filed our Income tax return. First thing we have to understand the difference between an intimation and a notice. Intimation is just the outcome of the processing of return and we may not be required to […]...

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Types of Notices under Income Tax Act, 1961

Notice under Section 142(1) - Inquiry before assessment Notice under Section 142(1) is usually served to call upon documents and details from the tax payers, and to take a particular case under assessment.The basic purpose is to inquire the details of the assessee before making assessment under the Act. It can be related to ‘Preliminary...

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Income tax Assessment Procedure in Nutshell

Income tax assessment is estimation for an amount assessed while paying Income Tax by assessee himself or by income tax officer. Following types of assessment are carried out under Income tax act. We will discuss each type of assessment in detailed in this article....

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While granting Approval for scrutiny assessment U/s. 143(3) CIT need not record separate reasons

Brothers & Sisters Enterprise Vs JCIT (ITAT Kolkata)

When the CIT is satisfied with the reasons given by the Assessing Officer, he in not once again give separate reasons or repeat the reasons recorded by the Assessing Officer and then give his approval for the same....

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Reopening of assessment beyond a period of 4 years to make fishing inquiries not justified

Crescent Construction Co. Vs. Asst. CIT (ITAT Mumbai)

The primary condition of reasonable belief having nexus with the material on record is still operative. However, we are of the view, that mere fresh application of mind to the same set of facts or mere change of opinion does not confer jurisdiction to the assessing officer even under the post-1989 section 147 of the Act. ...

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Order u/s 143(3) r.w.s.153A Void if AO erred in assuming jurisdiction u/s 153A

Shri Fazal Sarang Vs DCIT (ITAT Mumbai)

AO's assumption of jurisdiction under section 153A of Income Tax Act,1961 and consequent passing of order of assessment u/s. 143(3) r.w.s. 153A is void if Assessing Officer erred in assuming jurisdiction u/s 153A...

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CBDT Strategy to ensure Quality in Assessment Work for 2016-17

Framing of Quality Assessments is an essential part of any risk management strategy. Quality of Assessments is being used as one of the most important indicator to judge the performance of tax department. Therefore, it is imperative that various authorities in the hierarchy of Income-tax Department discharge their respective roles in the ...

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Posted Under: Income Tax |

Allow making of fresh claim during assessment proceedings

It has been observed that in many cases an assessee may wish to make a claim which was not made in the return of income filed under section 139. Where the assessee makes a claim of any expenditure or a deduction during the assessment proceedings which had not been made in the return of income […]...

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Assessment U/s. 147 not valid when time for scrutiny assessment U/s. 143(3) not lapsed

Krypton Industries Ltd. Vs DCIT (ITAT Kolkata)

Krypton Industries Ltd. V/s. DCIT (ITAT Kolkata)- Whether the action of AO for framing the assessment under section 147 is within his jurisdiction though the time for scrutiny assessment under section 143(3) has not lapsed. ...

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Assessment U/s. 143(3) despite non compliance of Notices is valid: HC

Subhash Chander Vs CIT (Punjab & Haryana High Court)

Punjab & Haryana High Court held In the case of Subhash Chander vs. CIT that it is open for the AO to complete assessment either u/s 144 or u/s 143(3), in case compliance of notice has not been done by the assessee....

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Disclosure of Income after Search at sister concerns office cannot be called voluntary

CIT Vs Balampur Chini Mills Pvt Ltd. (Calcutta High Court)

High Court Calcutta held in CIT Vs Balampur Chini Mills Pvt Ltd that even if the assesse had voluntary disclosed its income by filing revised ROI though not detected by the revenue during scrutiny proceedings u/s 143(3), penalty u/s 272(1)(c) would be levied. ...

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Review u/s 254(2) only if there is a mistake apparent from the record

M/s. Janus Investment Pvt. Ltd. Vs ITO (ITAT Mumbai)

If the AO had reopened the assessment and made a disallowance and these facts could affect the outcome of the issue, the AO should appear before the FAA to file an explanation about the chronology of events. But, in any manner the subsequent decision taken by the AO cannot be held to be a mistake apparent from the record....

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Re-assessment proceedings concluded us/ 147 are invalid if notice u/s 143(2) is not issued

ITO Vs M/s Staunch Marketing Pvt. Ltd. (ITAT Delhi)

The issue in dispute raised in additional ground relating to non issue of the mandatory notice u/s. 143(2) of the Act is decided in favour of the assessee and we hold that the impugned assessment order dated 31.12.2009 passed u/s. 147/143(3) of the Act by the AO as invalid....

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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). Ambiguity arose as to whether the said sub-s...

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Notice u/s 143(2) issued prior to filing of return in response to notice u/s 147 is invalid, even if return is filed late

Shri G.N.Mohan Raju, Vs ITO (ITAT Bangalore)

Hon'ble Bangalore ITAT has in the case of Shri G.N.Mohan Raju,v/s ITO in ITA No.242 & 243(Bang) 2013 has held that notice u/s 143(2) issued prior to filing of return in response to notice u/s 147 is invalid, even if return is filed late....

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Omission of notice u/s 143(2) of the Act is not merely a procedural irregularity

ITO Vs Shri Bhuvanesh Maheshwari (ITAT Jodhpur)

Facts of the case in brief are that the assessee filed his return of income belatedly on 26/03/2010 showing taxable income of Rs. 6,03,414/-, which was processed under section 143(1) of the I.T. Act, 1961 (hereinafter referred to as Act, for short on 05/04/2010....

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Scrutiny on the basis of data in Annual Information Return (AIR)

CA. M. Lakshmanan As per notification F.No. 225/26/2006-ITA.II (Pt.) dated 8th September 2010 scope of enquiry in the scrutiny cases selected on the basis of information collected from AIR returns would be limited to the aspects of information received through AIR....

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Posted Under: Income Tax |

Format of details to submitted during Income Tax Assessment

We have attached a file in excel format. The file contains the format of various details which normally assessing officer asks Assessee to furnish during Scrutiny Assessment U/s. 143(3) of the Income Tax Act, 1961. We have attached the format of following details :-...

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Initiation of Reassessment before expiry of time limit for scrutiny assessment is valid

The Commissioner Of Income Tax And Another Vs. Shri Jora Singh (Allahabad High Court)

On a query put by the Court, learned counsel for the assessee accepts if the recourse to Section 143(3) would have been barred by time, there would have been no restriction to initiate the re-assessment proceeding under Section 147 of the Act. We may add that there is nothing on the plain language of Section 143 of the Act which may sugge...

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Refund to be granted only if ROI is either processed u/s. 143(1) or assessment is made u/s.143(3)

Kiwanis Club of New Delhi Vs Director of Income Tax (Exemptions) (Delhi High Court)

It is not disputed by the assessee that the return of income was filed beyond the time limit prescribed by section 139(1) and even section 139(4). Under sub-section (4) of section 139 the assessee ought to have filed the return on or before 31-3-2000. However, the return was filed only on 10-10-2000. Under general principles, a refund of ...

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Extension of time for completion of assessments and reassessments

The existing provisions of section 153 and 153B, inter alia, provides the time limit for completion of assessment and reassessment of income by the Assessing Officer. Time limits have been provided for completion of assessment or reassessment under section 143(3), 147, 153A, 153C, etc. Further, these time limits get exten...

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Posted Under: Income Tax | ,

Section 143(3) assessment order without AO’s signature is Void – ITAT

Vijay Corporation Vs. ITO (ITAT Mumbai)

Vijay Corporation Vs. ITO (ITAT Mumbai) - Provisions of Sec. 143(3) of the Act contemplates that the AO shall pass an order of assessment in writing. The requirement of signature of the AO is therefore a legal requirement. The omission to sign the order of assessmenet cannot be explained by relying on the provisions of Sec.292B of the Act...

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Section 147 applies both to section 143(1) as well as section 143(3) – No reopening u/s 147 in absence of ‘new material’

HV Transmissions Ltd. Vs. ITO (ITAT Mumbai)

HV Transmissions Ltd. Vs. ITO (ITAT Mumbai) - Section 147 applies both to section 143(1) as well as section 143(3) and, therefore, except to the extent that a reassessment notice issued u/s 148 in a case where the original assessment was made u/s 143(1) cannot be challenged on the ground of a mere change of opinion, still it is open to an...

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When the assessee-society acts as an intermediate between the company and the members of the society, and the fact that there is no relationship between the assessee and its members as contractor and contractee, section 194C does not get attracted and no disallowance could be made u/s 40(a)(ia)

ITO Vs. The Ankleshwar Taluka ONGC (ITAT Ahmedabad)

ITO, Bharuch Vs The Ankleshwar Taluka ONGC (ITAT Ahmedabad)- It is pertinent to note that in the assessment order, the AO disallowed the entire payment made to the farmers amounting to Rs.2,57,62,253/- by invoking the provisions of section 40(a)(i) of he IT Act. Apart from this, the AO disallowed Rs. 51,47,250/- under Section 40A(3) of th...

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Assessee not entitled to deduction u/s 10A on the foreign exchange fluctuation gain which is derived on external commercial borrowings and not from the export activity of the assessee

Convergys India Services Pvt Ltd Vs DCIT (ITAT Delhi)

Convergys India Services Pvt Ltd Vs DCIT (ITAT Delhi) - In the present case, we note that gain is not on account of fluctuation in foreign exchange relating to assessee's export activities. The same is with respect to the external commercial borrowings. This cannot be termed as derived from the export activity of the assessee. The assesse...

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Posted Under: Income Tax |

If there is lack of enquiry on part of A.O., provisions of section 263 can be applied

Shiva Automobiles Vs ITO (ITAT Agra)

Where the Assessing Officer has not carried out necessary enquiry which ought to have been carried out for allowing deduction to the assessee under section 40(b), the order passed by the Assessing Officer was erroneous and prejudicial to the interest of the Revenue and CIT has rightly invoked the provisions of section 263....

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