Types of Assessment
• Summary Assessment – S.143(1)
• Scrutiny Assessment – S.143(3)
• Reassessment – S.147
• Assessment pursuant to search – 153A & 153C
• Assessment pursuant to revision – 143(3) r.w.s. 263
• Order giving effect to Appellate orders – S. 250 & S. 254 etc.
• Duty of the AO is to assess correct income on the right person
• 56 ITR 198 (SC)
• 107 ITR 63 (Guj)
• 218 ITR 239 (SC)
Notices under Scrutiny Assessment
• The procedure begins with a Notice u/s 143(2) which needs to be “Served” on an assessee prior to expiry of six months from the end of the financial year in which the return is furnished. Assessment framed u/s 143(3) without serving notice u/s 143(2) shall be void-ab-initio.
• Reference – Mahi Valley [287 ITR 360 (Guj)]
• It is followed by a notice u/s 142(1) calling for various information by AO for carrying out the assessment.
• AO shall issue a Show Cause Notice (SCN) intimating the assessee about the additions which he proposes to make in the assessee’s case.
• Different permissible modes of service of Notice – S. 282
• Objections as to service, time and manner of Notice have to be taken during the course of the assessment proceedigns.
Other ancillary powers of AO while framing the Assessment
• Summons u/s 131(1) for discovery and inspection, enforcing attendance and for compelling production of books of accounts.
• S.131(3) empowers the AO to impound and retain books of accounts or any other document produced before him during the assessment proceedings.
• S.133(6) empowers the AO to call for information from third parties.
Golden Rules for Representation
• Everything must be given in writing.
• Know your facts.
• Don’t offer more than what is asked for.
Even shifting burden of Proof
• Generally, the initial burden of proof is on the Assessee. However, once basic evidences/materials are placed on record and primary onus is discharged, the burden shifts to AO.
• AO to examine and scrutinise the evidences to prove them incorrect, unsupported, false or unbelievable. Then the burden again shift to Assessee.
Evidences and Materials used in Assessment proceedings
• In the assessment proceedings both the evidences and materials can be used.
• Section 3 of the India Evidence Act defines Evidence to mean and include all statements oral or in writing and all documents.
• Therefore, all the evidences in the form of statements, affidavits and declarations can be adduced as evidence.
• Material on the other hand includes explanations, submissions, contentions, claims, details, information, statements, affidavits, books of account, documents, record etc.
Issues in Assessment Proceedings
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