Now Let's revise assessment and audit the first section, Section 59 deals with self
assessment, where every person has to assess the tax payable by him in his return
filed provisional assessment. Basically, if a person is not able to determine the
applicable rate or value and therefore unable to determine the tax liability. Then
he may furnish an application that I want the officer to provisionally assess the
duty which is payable by me. Then the officer will accept it and issue a
provisional assessment order determining the rate or value on provisional basis.
Then he may also ask him to execute a bond, then the officer will go through all
the documents and has to pass a final assessment order within six months, plus six
months plus four years. First extension is given by joint Commissioner, additional
Commissioner. Second extension is given by the commissioner. Say, suppose extra has
been paid, then refund can be seeked, along with interest at 6% per annum after the
expiry of 60 days from the date of receipt of application of refund, if short
payment is done from the due date, tax has to be paid along with interest at 18%
per annum. Once these compliances are done, any security which was given along with
the bond will be released. Section 61 deals with scrutiny of returns, see if there
is any discrepancy noticed during scrutiny of returns, proper officer will issue a
notice and give a time limit not exceeding 30 days to reply to that notice once the
reply is received, if officer is satisfied, no problem. If he is not satisfied,
then he may proceed to audit such person, or he might conduct a special audit or
inspections or seizure may be done, or
intimation or notice under 73 or 74 may be started against such person. Then you
have assessment for non filers, basically best judgment assessment if a person has
not filed his return, that is Section 39 return or final return, and officer had
issued a notice he does not respond within 15 days. Then in that case, the officer
will determine the liability to the best of his judgment without issuing notice.
Under 73 or 74 the assessment order can be passed within five years. Say, suppose
Once the order is passed, if the person files the return within 60 days of service
of order, plus further 60 days on payment of additional late fee of 100 rupees
after first 60 days, then in that case, the assessment order will be withdrawn.
Section 63 best judgment for unregistered persons, for a unregistered person, being
a person who fails to obtain registration, or a person whose registration is suo
moto canceled by Officer. Officer will determine the liability to the best of his
judgment again. Here, notice will be issued again. The validity assessment order
can be passed in five years. Both best judgment five years will start from the due
date for filing annual return. There is another provision called as summary
assessment. Summary Assessment section 64 where, with prior approval of JC joint
commissioner or additional Commissioner, a summary assessment order may be passed
if the proper officer has evidence that the person has incurred a liability and has
sufficient reason to believe that if the delay is caused, then it will affect the
revenue. Two cases, this order will be withdrawn. One application by the taxable
person. Second, on the officers own motion saying that the order passed by him was
erroneous, and instead they can follow 73 or 74 finally, audit, two kinds of audit,
audit by proper officer, special audit proper officer, basically, they will get
three months time plus extension of six months, and it will result into notice
under 73 or 74 special audit, conducted by chartered accountant, as assigned by
Assistant Commissioner, in only two cases, value or credit is not within normal
limits. Time Period is 90 days, plus extension of 90 days fees would be borne by
the department, and this will also result into notice under 73 or 74 so.
Transcribed by https://otter.ai
