Income Tax Notice Type and time period

Income tax department uses computer aided scrutiny selection (CASS) to detect unusual/non-reconciling cases. Gone are the days when tax records were not integrated.

I-T Section	Time frame	Possible reasons
142 (1)	No time bar	Not filed tax returns or to call for documents in support of filed returns
143 (1)	Up to 1 year after completion of relevant assessment year	Calculation error or processing of assessment
143 (2)	Up to 6 months after completion of relevant assessment year	Return picked up for scrutiny assessment
148	4 years if income escaped is Rs 1 lakh or less else 6 years	Income has escaped assessment
156	-	Demanding tax, interest, penalty or fine

Assessment	Order Passed under
Summary Assessment u/s 143(1)	u/s 143(1)
Scrutiny (Regular) Assessment u/s 143(2)	u/s 143(2)

A notice under Section 142(1) (issued in case of non filing of return) requiring to file a return can be issued at anytime. This notice can be issued for the purpose of assessment. There is time limit for complete the assessment of a particular asst. year.No notice can be issued u/s 142(1) after the lapse of the time limit prescribed for assessment.

This notice can be issued for the purpose of assessment. There is time limit for complete the assessment of a particular asst. year.No notice can be issued u/s 142(1) after the lapse of the time limit prescribed for assessment.

Read more at: http://www.caclubindia.com/forum/re-time-limit-for-issue-of-notice-u-s-142-1--3504.asp#.UylIuKK3tFs

This notice can be issued for the purpose of assessment. There is time limit for complete the assessment of a particular asst. year.No notice can be issued u/s 142(1) after the lapse of the time limit prescribed for assessment.

Read more at: http://www.caclubindia.com/forum/re-time-limit-for-issue-of-notice-u-s-142-1--3504.asp#.UylIuKK3tFs

A notice under Section 143(3) for scrutiny assessment has to be served within six months of the end of the financial year in which the return was filed. If served later than this period, it will be considered invalid. Preserve the envelope. It is proof of the dates on which it was posted and received.

Under Section 148 assessing officer can reopen a case up to six years from the end of the relevant assessment year if he has reasons to suspect income evasion. If the amount in question is less than `1 lakh, only returns that are up to four years old can be reopened.

Further as per Sec 153(1) specifying time frame for completion of assessment

153. [(1) No order of assessment shall be made under section 143 or section 144 at any time after the expiry of—

(a) two years from the end of the assessment year in which the income was first assessable; or

(b) one year from the end of the financial year in which a return or a revised return relating to the assessment year commencing on the 1st day of April, 1988, or any earlier assessment year, is filed under sub-section (4) or sub-section (5) of section 139,

whichever is later :]