assessment and types of assessment

1. Assessment and
types of Assessment
AKANKSHA
ROLL NO. 33
FIFTH YEAR BA L.LB
SUBJECT : LAWS OF
TAXATION

2. Introduction
THE DEFINITION OF THE AMOUNT SUBJECT TO TAXATION UNDER A PARTICU LAR
STATUE REQUIRES AN ANALYSIS OF THE TAX PAYERS SITUATION AND THE LEGAL
PROVISION APPLIES TO HIM.
WITH THE INCOME TAX A TAX PAYER MUST SUBMIT A TAX RETURN PROVIDING
INFORMATION AS TO HIS OCCUPATION, HIS REAL AND PERSONAL PROPERTY
OTHER EXPENDITURES ALONG WITH REPORTS ATTACHED , MEANT TO PROVIDE
COMPLETE INFORMATION THAT ASSESSING OFFICER CAN RELY UPON.
THE PROCESS OF EXAMINING THE RETURN OF INCOME BY INCOME TAX
DEPARTMENT IS CALLED AS ASSESSMENT. IT ALSO INCLUDES RE-ASSESSMENT
AND BEST JUDGMENT ASSESSMENT UNDER SECT 144

3. TYPES OF ASSESSMENT
THE FOLLOWING ARE DIFFERENT TYPES OF ASSESSMENT:
1) SELF ASSESSMENT
2) SUMMARY ASSESSMENT
3) SCRUTINY ASSESSMENT
4) BEST JUDGMENT ASSESSMENT
5) REASSESSMENT

4. TYPES OF ASSESSMENT
UNDER THE INCOME TAX LAW THERE ARE FIVE TYPES OF ASSESSMENT. THEY ARE AS FOLLOWS:
1) SELF ASSESSMENT- SECTION 140 A
AN ASSESSEE IS REQUIRED TO SUBMIT HIS RETURN OF INCOME u/s 139 OR 142 OR148 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
FURNING THE RETURN OF INCOME.
THIS PROCESS IS SELF ASSESSMENT OF INCOME.

5. CONT.
2) SUMMARY ASSESSMENT : SECTION 143 (1)
U/s 143(1) THE ASSESSING OFFICER CAM 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;
1) ARITHMETICAL ERROR
2) IN APPROPRIATION CLAIM WHICH ARE APPARENT ON RECORD.
IN SUCH CASES INTIMATION IS PREPARED AND SENT TO ASSESSEE SPECIFYING THE SUM
DETERMINED TO BE PAYABLE BY HIM OR THE AMOUNT OF REFUND DUE TO HIM.

6. CONT.
CASE
SMT. AMIYA PAUL v CIT (AIR 2003 S.C)
HELD THAT THE POWER OF ASSESSING OFFICER TO ENQUIRE DOES NOT INCLUDE POWER TO
REFER THE MATTER TO THE VALUATION OFFICER.
RATTANLAL TIKU v CIT (1974)
IT WAS HELD THAT THE ISSUE OF SUCH NOTICE SHALL BE SERVED ON THE ASSESSEE IN THE
CONDITIONS STATED IN SECTION 142 (1) IS MANDATORY.

7. CONT.
3) SCRUTINY ASSESSMENT: SECTION 142,142A,143(2), 143(3) & 292BB
WHERE THE ASSESSING OFFICER DECIDES TO SCRUTINIZE THE RETURN OF INCOME FILLED BY
THE ASSESSEE HE WILL ISSUE A NOTICE UNDER SECTION 143(2) REQUIRING THE ASSESSEE
EITHER TO ATTEND HIS OFFICE R TO PRODUCE EVIDENCE IN SUPPORT OF THE RETURN FILLED
THE NOTICE HAS TO BE SERVED BEFORE EXPIRY OF 12 MONTHS FROM THE END OF THE MONTH
RETURN IS FURNISHED.

8. CONT.
4) BEST JUDGMENT ASSESSMENT: SECTION 144
THIS IS AS AN EXPARTE ASSESSMENT CALLED THE BEST JUDMENT ASSESSMENT AND IS MADE IN
THE FOLLOWING CIRCUMSTANCES:
A) FAILURE TO FILE RETURN OF INCONE u/s139 OR 139(4) OR 139(5) OR
B) FAILURE TO COMPLY WITH ALL THE TERMS OF A NOTICE UNDER SECTION 142(1) OR u/s142
(2A) OR
C) HAVING FILLED THE RETURN OF INCOME THE ASSESSEE FAILS TO COMPLY WITH THE TERMS
OF NOTICE ISSUED u/s 143(2)
THE ASSESSING OFFICER AFTER TAKING INTO ACCOUNT ALL RELEVANT FACTS AND GIVING THE
ASSESSEE OPPORTUNITY OF BEING HEARD WILL MAKE THE ASSESSMENT TO HIS BEST
JUDGEMENT .

9. CONT.
5) REASSESSMENT
WHERE THE ASSESSING OFFICER HAS A REASON TO BELIEVE THAT INCOME ASSESSIBLE TO TAX
HAS ESCAPED ASSESSMENT HE MAY REOPEN THE RELEVANR ASSESSMENT AFTER RECORDING
HIS RESONS FOR DOING SO, BY ISSUING NOTICE UNDER SECTION 148 CALLING UPON THE
ASSESSEE TO FILE A RETURN
THE TIME LIMIT FOR ISSUING SUCH NOTICE u/s 149 IS AS UNDER
IF INCOME ESCAPING ASSESSMENT IS LESS THAN RS 100000. ITS FOUR YEARS FROM THE END OF
RELEVANT YEAR.
IF INCOME ESCAPING ASSESS,ET IS OF RS 100000 OR MORE .ITS 6 YEARS FROM END OF
RELEVANT YEAR

10. CONCLUSION
THE INCOME TAX DEPARTMENT EXAMINES THE RETURNS OF INCOME FOR ITS CORRECTNESS.
ASSESSMENT IS EXAMING THE RETURNS OF INCOME BY AUTHORITIES. IT ALSO INCLUDES
REASSESSING .
THERE ARE FIVE TYPES OF ASSESSMENTS. SCOPE OF THESE ASSESSMENT AND OBJECTIVE IS TO
CONFIRM THAT TAX PAYER HAS NOT UNDERSTATED THE INCOMEOR HAS NOT COMPUTED
EXCESSIVE LOSS OR HAS UNDERPAID TAX IN ANY MANNER.