Sec. 142 - Inquiry before assessment
Notice
1) The Assessing Officer may serve on any person who has filed a return u/s.139 or in the case of any other person where the due date for filing return of income has expired requiring the following :
i) If the assessee has not made a return within the time allowed u/s.139(1), then the notice can require him to furnish the return of income.
ii] The notice can require the production of accounts and documents.
iii) The notice can require furnishing of information on such points or such matters including the furnishing of the list of assets and liabilities as the Assessing Officer may require.
2) But, prior approval of Joint Commissioner is necessary before requiring the assessee to furnish the details of all assets and liabilities not included in the accounts. The Assessing Officer shall not require the production of accounts relating to a period s more than 3 years prior to the previous year. The assessing officer may make such inquiry as he considers necessary for the ^purpose of obtaining full information about the income or loss of any person. The Assessing Officer at any stage of the proceedings may, having regard to the -nature and complexities of the accounts of the assessee and the interest of the revenue, direct the assessee to get the accounts audited and furnish the audit report. Such a direction can be issued only with the prior approval of the Chief Commissioner or Commissioner and the audit shall be done by a Chartered Accountant nominated by the Chief Commissioner or Commissioner. The audit can be required to be done even if the accounts are already audited.^The audit report shall be furnished within a period specified by the assessing officer IN which can be extended up to 180 days from the date of receipt of direction by the Assessee on an application made by him. The expenses for the audit shall be Determined by the Chief Commissioner or Commissioner and shall be paid by the Assessee.
Opportunity-The assessee shall be given an opportunity of being heard in respect of materials gathered on inquiry and proposed to be'used in the assessment.