For all those income tax assessees who have filed their income tax returns for Assessment Year 2007-2008 (FY 2006-2007) last year, there are reasons to cheer if you haven’t got a income tax scrutiny notice till now.
Till last year, the law was that income tax department could issue a notice u/s 142(1) and 143(2) till 12 months from the end of the month in which the return was filed. That meant for individuals who got their accounts audited, last date was October 31 of the year and for others it was July 31.
But since April 2008, the clause has been changed and the time period for issue of notice for scrutiny of assessment has been modified. As per new law, such notice shall not be served after the expiry of six months from the end of the financial year in which the return is filed. Thus last date to receive a notice is now 30th September of each year.
The new clause won’t make a difference for those who get their accounts audited, as w.e.f. Assessment Year 2008-2009, last date of filing has been reduced from October 31 to September 30. While for other individuals, it gives 2 months more for income tax department to issue such notices.
So in case if you receive a income tax scrutiny notice after 30-September, it would be considered invalid.
Find this article at: http://www.labnol.org/india/law/be-relieved-if-you-didnt-receive-a-income-tax-scrutiny-notice-you-wont-get-it-now-this-year/4730/
web: http://www.labnol.org/ email: amit@labnol.org
Reader Comments
The author is INCORRECT in his last sentence. For proof see the real danger presented by the new section 292BB of India’s Income Tax Act which reads as follows:
“Where an assessee has appeared in any proceeding or co-operated in any inquiry relating to an assessment or reassessment, it shall be deemed that any notice under any provision of this Act, which is required to be served upon him, has been duly served upon him in time in accordance with the provisions of this Act and such assessee shall be precluded from taking any objection in any proceeding or inquiry under this Act that the notice was
(a) not served upon him; or
(b) not served upon him in time; or
(c) served upon him in an improper manner:
Provided that nothing contained in this section shall apply where the assessee has raised such objection before the completion of such assessment or reassessment.]”
Thus you CAN still receive a Scrutiny Notice and that notice IS valid UNLESS you object before the completion of the assessment or reassessment AND you refuse to appear or co-operate in any related inquiry!!!
Written by Devashish on 10.13.08