What is assessment procedure?Assessment simply means determination of Tax. It is the procedure for determining Tax Liability and recovery of tax. This is determined as per the taxation law existing in that particular Assessment Year.

How much did you earn? Furnishing in ITR Checking of ITR by Deptt

Filing Return of Income• Voluntary Return – Section 139(1)

- Anytime on or before the given dates:-Assesse Due Date(AY)

Company

September 30Working Partners of Partnership Firm Subjected to AuditAny other Assesse required to be audited under IT or other LawAny person Required to report u/s 92E November 30Other Cases. E.g. Individual, AOP, Partnership Firm (Not Auditable) July 31

• Belated Return – Section 139(4)– If not filed ROI with due date or on notice u/s 142(1)– He may still file return u/s 139(4), called a Belated Return– No Penalties– Must be filed within 1 year from end of relevant AYEG. If Mr. X has not filed return for AY 2013-14, he must file his return uptill 31 March 2015.

• Loss Return – Section 139(3)– Must be filed within due dates u/s 139(1) to avail carry

forward– All provision applicable on S. 139(1) will be applicable if a loss

return is timely filed.

Can the unabsorbed depreciation be allowed to be carried forward in case the return of

income is not filed within the due date?

• CIT v. Govind Nagar Sugar Ltd. (2011) 334 ITR 13 (Delhi)

• The Honorable High Court held that the provisions of section 80 and section 139(3), requiring the return of income claiming loss to be filed within the due date, applies to, inter alia, carry forward of business loss and not for the carrying forward of unabsorbed depreciation. Therefore allowed carry forward of unabsorbed depreciation.

• Revised Return – u/s 139(5)– Only a return filed u/s 139(1) or 142(1) can be revised– Belated Return cannot be revised– May revise for any omission or wrong statement– Must be revised:-• Within 1 year from end of relevant AY; or• Before completion of Assessment–Whichever is earlier

Life of Assessevis-a-vis

Life of TeenagerParents

Types of Assessment

When Teenager is busy doing this…..

Parents are doing this…

When Teenager is busy doing this…..

Parents are doing this…

When teenagers are busy doing this…..

Parents are doing this…

Section 140 A – Self Assessment

• In this kind of assessment the Income Tax Department had given the opportunity to the assesse to disclose his income truthfully.

• The department assumes the income declared by the assesse to be true but also keeps an eye on the transactions that the assesse is making.

• Since the assesse himself computes his income and tax liability, therefore it is called self assessment.

• Regular Assessment Procedure:Section Particulars ROI Filed/

Not Filed Meaning Time Limit

142(1) Notice Not Filed

AO issues a notice if not filed ROI within due datesIf return filed within the time granted by AO is his Notice, it shall be considered a return filed u/s 139(1)

As prescribed in the notice

143(1) Intimation to Assesse

Filed AO Feels that there is some error in ROI Filed

1 Year from the end of FY in which ROI is Furnished

Section Particulars ROI Filed/ Not Filed

Meaning Time Limit

143(2) Notice of Scrutiny

Filed AO Feels Necessary to ensure that assesse has not:-1) Understated his

Income2) Computed

Excessive Loss3) Underpaid Tax

6 Months from the end of the year in which the ROI is furnished

143(3) Scrutiny Assessment

Filed AO Determines the Total Income and Payable Taxes after hearing evidence from the assesse

2 Years from end of relevant AY

• Section 144 – Best Judgment Assessment– If the assesse fails to:- • File ROI u/s 139 (1) / (4) / (5)• Comply with notice u/s 142(1)• Fails to get his accounts audited u/s 142(2A) and furnish audit

report• Fails to company with notice u/s 143(2)

– Shall be initiated before completion of 24 Months from end of relevant AY.

– What ever liability is determined by the AO has to be paid by the assesse.

SECTION 147 and 148Income Escaping Assessment

• u/s 148 the AO can serve notice for assessment or re-assessment of income that the AO believes to have escaped assessment

• Such assessment can be done any number of times

Can the Assessing Officer reopen an assessment on the basis of merely a change of opinion?

• Aventis Pharma Ltd. v. ACIT (2010) 323 ITR 570 (Bombay)

• The High Court observed that:-– there was no tangible material before the Assessing

Officer to hold that income had escaped assessment – within the meaning of section 147 and the reasons

recorded for reopening the assessment constituted a mere change of opinion.

– Therefore, the reassessment was not valid.

Conclusion

• There are various issues relating to date of issue/receipt of notice and disagreements with the AO .

• Incase of such issues, some assesse approach CIT (appeals) or file WRIT Petition in High Court but all tend to look like procedural harassment.

• But if one is correct in stand and has disclosed his income properly – then there is nothing to fear.

• The assessment is feared by the people who hide the income.

Thank You

Made By:-SAHIL GOELCRO-0488863Ph. 9891516946Mail – sahil _goel_student@yahoo.co.inFollow me at:bizleft.blogspot.com/facebook.com/sahil1294