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What is Assessment under Section 143(3) of Income Tax Act, 1961? What is Scrutiny Assessment? What is the time Limit to complete scrutiny Assessment?.

Income Tax Assessment Under Section 143(3) of Income Tax Act

Assessment U/s 143(3) is a detailed assessment and is referred to as scrutiny assessment. At this stage a detailed scrutiny of the return of income will be carried out. At this stage a scrutiny is carried out to confirm the correctness and genuineness of various claims, deductions, etc., made by the taxpayer in the return of income.

Scope of assessment under section 143(3)

The objective of scrutiny assessment is to confirm that the taxpayer has not understated the income or has not computed excessive loss or has not underpaid the tax in any manner.

 

To confirm the above, the Assessing Officer carries out a detailed scrutiny of the return of income and will satisfy himself regarding various claims, deductions, etc., made by the taxpayer in the return of income.

Procedure of assessment under section 143(3)

If the Assessing Officer considers it necessary or expedient to ensure that the taxpayer has not understated the income or has not computed excessive loss or has not underpaid the tax in any manner, then he will serve on the taxpayer a notice requiring him to attend his office or to produce or cause to be produced any evidence on which the taxpayer may rely, in support of the return.

To carry out assessment under section 143(3), the Assessing Officer shall serve such notice in accordance with provisions of section 143(2).

Notice under section 143(2) should be served within a period of six months from the end of the financial year in which the return is filed.

The taxpayer or his representative (as the case may be) will appear before the Assessing Officer and will place his arguments, supporting evidences, etc., on various matters/issues as required by the Assessing Officer.

After hearing/verifying such evidence and taking into account such particulars as the taxpayer may produce and such other evidence as the Assessing Officer may require on specified points and after taking into account all relevant materials which he has gathered, the Assessing Officer shall, by an order in writing, make an assessment of the total income or loss of the taxpayer and determine the sum payable by him or refund of any amount due to him on the basis of such assessment.

Time-limit for Completion of Assessment u/s 143(3)

As per section 153, assessment under section 143(3) shall be made within a period of two years from the end of the relevant assessment year.

   
 

Assessments under Income tax Law

What is Assessment under Section 143(1) of Income Tax Act, 1961? What is Summary Assessment? What is the time limit to complete summary assessment?

What is Assessment under Section 143(3) of Income Tax Act, 1961? What is Scrutiny Assessment? What is the time limit to complete scrutiny assessment?

What is Assessment under Section 144 of Income Tax Act, 1961? What is Judgment Assessment? What is the time Limit to complete Judgment Assessment?

What is Assessment under Section 147 of Income Tax Act, 1961? What is Escaped Assessment? How to prepare Return under Section 148? What is the time Limit to complete Escaped Assessment?

 

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