-: Indian Income Tax :-

-: Types of Assessments :-

-: Complied By :-Prof. Rajesh Jain

rmjainca@gmail.com

-: Types of Assessment :-

[1 ] SELF ASSESSMENT [ Sec 140 A ]

An assessee is required to submit his return of income u/s 139 or 142 or 148 or 153A or 158BC.

Before submitting the aforesaid return, he is supposed to find out whether any tax and or interest is payable.

Self Assessment Tax so determined shall be deposited by the assessee before furnishing the return of income.

This process is known as self assessment of income.

-: Types of Assessment :-

[2 ] Summary Assessment (without calling the assessee )

[ Sec 143 (1) ]U/s 143(1), the Assessing officer can complete an assessment without

passing a regular assessment order. The assessment is complete on the basis of return submitted by the assessee. The assessing officer can, however, make the following adjustment to the total income declared in his return :-

a. Arithmetical error, orb. In appropriate claim, which are apparent form record.In such cases, intimation is prepared & sent to the Assessee specifying

the sum determined to be payable by him or the amount of refund due to him.

-: Types of Assessment :-

[3] Scrutiny Assessment [ Sec 142, 142A, 143(2), 143(3) & 292BB]

Where the assessing officer decides to scrutinise the return of income filed by the assessee, he will issue a notice under Sec 143(2) requiring the assessee either to attend his office or to produce evidence in support of the return filed.

Suce Notice has to be served before the expiry of 6 months from the end of the financial year in which the return is furnished. He may also call for the production of any accounts and documents by issuing notice u/s 142(1).

-: Types of Assessment :-

[4] Best Judgement Assessment [ Sec 144 ]

This is an ex-parte assessment called the “Best Judgement Assessment” and is made in the following circumstances :-

(i) Failure to file return of income u/s 139(1) or 139(4) or 139(5) ;or(ii) Failure to comply with all the terms of a notice under section 142(1)

or u/s 142(2A); or(iii) having filed the return of income, the assessee fails to comply with

the terms of a notice issued u/s 143(2)The Assessing officer ( A.O.), after taking into account all relevant fact

and after giving the assessee an opportunity of being heard, will make the assessment to the best of his judgement and determine the sum payable by the assessee on the basis of such assessment.

-: Types of Assessment :-

[5] Reassessment [ Sec 147 to 151 ]

Where the Assessing offer has reason to believe that income assessable to tax has escaped assessment he may reopen the relevant assessment, after recording his reasons for doing so, by issuing a notice u/s 148 calling upon the assessee to file a return.

The time limit for issuing of such a notice u/s 149 is as under : (a) if income escaping assessment .. 4 years from the end of the is less than Rs.1,00,000. relevant A.Y. (b) if income escaping assessment .. 6 years from the end of the is Rs.1,00,000 or more relevant A.Y.

-: Revision of Orders by Commissioner :-[ Sec 263 & 264 ]

Revision of Orders by CIT in favour of Revenue u/s 263• Pre-requisite : * Prejudicial to the interest of revenue. * Erroneous Order• Revised Order should be passed before the expiry of 2 years from

the end of financial year in which order is sought to be revised was passed.

• Opportunity of being heard should be given to the assessee before passing an order u/s 263.

• Powers of Commissioner : Enhance, modify or cancel the assessment order & direct a fresh assessment.

• Appeal can be filed to the appellate tribunal against the order passed u/s 263.

-: Revision of Orders by Commissioner :-[ Sec 263 & 264 ]

Revision of Orders by CIT in favour of Assessee u/s 264• Pre-requisite : * Assessee has to waive the right of Appeal. ( However writ petition under Article 226/227 is possible ) * Where an appeal against the said order has been filed – No

revision is possible.• Revision of order by own motion of Commissioner or on application by

the assessee.• Revision of order on own motion by commissioner to be passed within 1

year from the date of order sought to be revised.• Application by assessee should be made within 1 year from the date on

which order in question was communicated or date on which assessee came to know , whichever is earlier.

• Order to be passed within 1 year from the end of the financial year in which application is made by the assessee for revision.

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