ASSESSMENT - Sec. 143
The provisions of Sec. 143 have been amended with effect from 1-6-99 whereby an intimation is required to be sent only in a case where there is demand payable by the assessee or where refund is due to the assessee.
In other cases the acknowledgement issued on filing of the return of income shall be deemed to be intimation.
The power to process the return, to make prima facie adjustments and the power to levy additional Income-tax are omitted. This change in procedural law applies to all the returns which are pending as on 1-6-99 and to the returns subsequently filed irrespective of the assessment years to which such returns relate to. Modus operandi The procedure to be adopted under the provisions of section 143 is briefly highlighted| here below: I
1) When a return of income is filed u/s.139 or in response to notice u/s. 142(1), any tax or interest is found due on the basis of such return after adjustment all prepaid taxes intimation shall be sent and such intimation shall be treated as a notice of demand u/s.156.
2) If any refund is due to the assessee on the basis of such return, it shall granted and an intimation to this effect shall be sent to the assessee.
3) No intimation shall be sent after the expiry of one year from the end of financial year in which the return is made.
4) The Assessing Officer shall, if he considers it necessary or expedient to that the assessee - a) has not understated the income ; or b) has not computed excessive loss ; or c) has not underpaid the tax in any manner, take up the case for regular assessment by issuing notice u/s.143(2).
5) Such notice shall not be served on the assessee after the expiry of twelve months from the end of the month in which the return is furnished.
6) The Assessing Officer, after hearing such evidence as the assessee may produce and after taking into account all relevant material which he has gathered, shall make an assessment u/s.143(3) of the total income or loss of the assessee by order in writing and determine the sum payable by him or refundable to him on the basis of such assessment.
7) Where a regular assessment is made under section 143(3) or section 144, tax or interest paid u/s.143(1) shall be deemed to have been paid towards regular assessment. If no refund is due on regular assessment or if the amount refunded u/s.143(1) exceeds the amount refundable on regular assessment,.! whole or the excess amount so refunded shall be deemed to be tax payable the assessee - Sec. 143 (4).