Regular/Scrutiny Assessment Procedure U/s 143 (3)
Only 3% to 5% cases are taken for scrutiny
assessment.
The assessing officer (AO) is not
required to possess any ‘reason to believe’. In this assessment AO is charged with
the duty to ensure that the assessee:
- has not understand the Income or
- has not computed excessive loss has not under paid taxes
Also while the scrutiny
assessment is in process, the assessee can also
put forth claims that he had not done in the ITR and these have to be
considered by the AO.
Consequently, in his assessment
u/s 143(3) the AO can even reduce income or assess loss higher than the
returned loss.
The assessment u/s 143(3) is
completed with an assessment order in writing which should contain the tax
computed under the signature of AO.
Under this
AO can also do protective assessment-i.e. assess the same income in hands of
more than one person till it becomes clear in whose hand the income should be
assessed. Protective assessment is undertaken so that there is no loss to
revenue.
If assessment
u/s 143(3) is done on basis of invalid return- the assessment order continues
to operate till it is invalidated by the court.
On remand (i.e. if the cases goes
to ITAT on some points, and ITAT sends
it back to AO for reconsideration or correction on question of fact or law) only the specific point can
be dealt by the AO. On remand, the AO cannot bring in new sources of income or
open new issues.
Assessment made under this
section would be final and the department cannot open the case again unless
there are valid reasons (‘reasons to believe’). These are dealt in reassessment
proceedings.
Scrutiny evaluation beneath segment 143(3) is a detailed assessment of an income tax go back filed by a taxpayer. In a scrutiny evaluation, a tax officer would perform various assessments and processes to affirm the correctness and genuineness of numerous claims, deductions, etc., made by the taxpayer in the profits tax return. The objective of a scrutiny evaluation is to ensure that the taxpayer has no longer understated the profits or has now not computed immoderate loss or has no longer underpaid the tax in any way.In case of failure to supply facts or non-cooperation via the taxpayer,
ReplyDeleteGST Registration the tax officer is empowered to complete the pleasant judgement assessment under section 144.