Presented at Chartered Accountants national convention

1. 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

2. Filing Return of Income
• Voluntary Return – Section 139(1)
- Anytime on or before the given dates:-
Assesse Due Date(AY)
Company
September 30
Working Partners of Partnership Firm
Subjected to Audit
Any other Assesse required to be audited
under IT or other Law
Any person Required to report u/s 92E November 30
Other Cases. E.g. Individual, AOP,
Partnership Firm (Not Auditable)
July 31

3. • 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 AY
EG. 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.

4. 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.

5. • 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

6. Life of Assesse
vis-a-vis
Life of Teenager

7. Types of Assessment

14. 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.

15. • 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 dates
If 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

16. 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
Income
2) Computed
Excessive Loss
3) Underpaid Tax
6 Months
from the end
of the year in
which the
ROI is
furnished
143(3) Scrutiny
Assessm
ent
Filed AO Determines the
Total Income and
Payable Taxes after
hearing evidence
from the assesse
2 Years from
end of
relevant AY

18. • 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.

19. SECTION 147 and 148
Income 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

20. 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.

21. 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.

22. Thank You
Made By:-
SAHIL GOEL
CRO-0488863
Ph. 9891516946
Mail – sahil _goel_student@yahoo.co.in
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