CMA FINAL - DT BCCA INDEX

CHAPTER NAME
1 Basic Concepts
2 Return of Income
3 Income Tax Authorities
4 Assessment Procedures
5 Search, Seizure & Survey
6 Appeals & Revision and Rectification & SC
7 Advance Tax & Interest
8 Collection, Recovery and Refund
9 Business Restructuring & Re-Construction
10 Assessment of Various Entities
11 Tax Planning, Tax Avoidance & Evasion and Tax Management
12 GAAR
13 ICDS
14 Liabilities in Special Cases
15 Black Money
16 Penalties & Prosecution
17 Non-Resident
18 DTAA
19 Transfer Pricing
20 Advance Ruling
21 PGBP
22 Chapter VIA Deductions
23 TDS & TCS

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CMA FINAL - DT BCCA BASIC CONCEPTS

BASIC CONCEPTS
1.Power to levy Taxes:

a) The Constitution of India, in Article 265 lays down that “No tax shall be levied or collected,
except by authority of law.”
b) Constitution of India gives the power to levy and collect taxes, whether direct or indirect, to
the Central and State Government.
c) Seventh schedule of Article 246 consists of three lists which gives the power to make laws.

2. Components of income tax law:

Income Tax Income tax Annual Circulars and Judicial

Act 1961 rules 1962 finance Act Notifications Decisions

a) Income Tax Act 1961:

➢ Extends to Whole of India
➢ Came in to force on 1st April 1962
➢ Contains 298 sections and XIV schedules
➢ A section may have
✓ Sub sections
✓ Clauses
✓ Sub- Clauses
✓ Provisos
✓ Explanations
b) Annual finance Act:
➢ When the Finance Bill is passed by both the houses of the Parliament and gets the assent
ofthe President, it becomes the Finance Act.
➢ Amendments are made every year to the Income-tax Act, 1961 and other tax laws by
theFinance Act.
c) Income tax rules 1962:
➢ CBDT is empowered to make rules.
➢ For the proper administration of Act CBDT frames rules from time to time.
➢ Rules are the step-by-step guide lines for implementation of Act.
➢ Rules also have sub-rules, provisos and Explanations.
d) Circulars and Notifications:
➢ Circulars
✓ CBDT issues circulars from time to time to clarify doubts regarding scope and meaning
of certain provisions.
✓ Department is bound by circulars, whereas for assesses they can take advantage of
beneficial circulars.

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✓ E.g. Circular No 13 of 2021, given clarity about applicability of TDS on purchase of goods
u/s 194Q.
➢ Notifications:
✓ Will be issued to give effect to the provisions of the Act.
✓ With respect to ACT central government will issue notifications.
✓ With respect to rules CBDT will issue notifications.
✓ Notifications are binding on both assessee and Dept.
✓ E.g. Notification No 54/2013 dated 15/17/2013 dated, laying down the guidelines &
conditions for approval of skill development project u/s 35CCD.
e) Case laws:
✓ Judgements given by SC & HC are important in order to study income tax law.
3. Charging section (Sec 4)

Every person whose total income of the previous year exceeds the “maximum amount not chargeable
to tax” is an assessee and chargeable to income tax at the rates specified in the finance act for
relevant assessment year.

✓ Person (Sec 2(31)): Includes

✓ Individual
✓ HUF
✓ Firm
✓ Company
✓ AOP/BOI
✓ Local Authority
✓ Artificial Judicial person

✓ Total income:

Particulars ₹
Income from salaries XXXX
Income from house p property XXXX
Profits and gains from business or profession (PGBP) XXXX
Capital gains XXXX
Income from other sources XXXX
Gross total income XXXX
Less: chapter VIA deductions (XXX)
Net total income XXXX

✓ Previous year: (Sec 3)

✓ The financial l year in which you earn the income is called as previous year.
✓ Present previous year is 2023-24 (i.e., from 1/4/2023 to 31/3/2024) always 12 months.
Exceptions:
• New business commences from 1/8/2023 (i.e. from 1/8/2023 to 31/3/2024) less than 12
months.
• New source of income starts from 1/9/2023(i.e. from 1/9/2023 to 31/3/2024) less than 12
months.

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✓ Assessment year:
✓ The financial year in which you pay the tax is called assessment year.
✓ Present assessment year is 2024-2025 (i.e., from 1/4/2024 to 31/3/2025).

✓ General rule:
✓ Income earned during the PY on that income tax needs to pay in the AY.

✓ Maximum amount not chargeable to tax (Basic exemption limit)

Person BEL
Individua l (Non-Resident or < 60 years), HUF, AOP/BOI, AJP 2,50,000
Resident individual (> 60 years but < 80 years) {Senior citizen} 3,00,000
Resident individual (> 80 years) {Very senior/Super senior citizen} 5,00,000
Company, Partners hip firm/LLP, Local authority, Co-operative society NIL

✓ Assessee:
Any person who required paying tax (or) any other sum of money under income tax act, 1961 is called
as an assessee.

✓ Tax rates:

Tax liability

✓ Income tax Health &

✓ Surcharge education cess
rates

Normal tax Optional tax Special tax

rates rates Rates

Note:

→ Where the person born on 1st April would be considered to have attained the particular age
on 31st March i.e., day preceding the anniversary of his birthday.
→ e.g., if person born on 1st April 1963, he will be considered to have attained the age of 60
years(i.e., become senior citizen in FY 2023-24) on 31st March 2024.

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CMA FINAL - DT BCCA BASIC CONCEPTS

❖ Normal tax rates:

Up to 2,50,000 Nil
Individua l (non-Resident or < 60 years), 2,50,001- 5,00,000 5%
HUF, AOP/BOI, AJP 5,00,001- 10,00,000 20%
Above 10,00,000 30%
Up to 3,00,000 Nil
Resident individual (>60 years but < 80 3,00,001- 5,00,000 5%
years) {Senior citizen} 5,00,001- 10,00,000 20%
Above 10,00,000 30%
Up to 5,00,000 Nil
Resident individual (> 80 years)
5,00,001- 10,00,000 20%
{Very senior citizen or Super senior
citizen} Above 10,00,000 30%
Firm including LLP Flat rates 30%
Local authority Flat rates 30%
Up to 10,000 10%
Cooperative society 10,001 -20,000 20%
Above 20,000 30%
Turnover or gross
Domestic receipts in the PY 21-22 25%
companies does not exceed 400 Cr
Companies Other domestic companies 30%
Royalties and fees for rendering
technical services (FTS) received
from Government or an Indian
concern
50%
Foreign an agreement in case of royalties:
companies 1.4.1961 and 31.3.1976
an agreement in case of FTS:
1.3.1964 and 31.3.1976
Other cases
40%

❖ Surcharge:
✓ Individual/HUF/BOI/AJP/AOP (other than AOP Consisting only companies as members)
(Resident/Non-resident - Irrespective of age limit)

Under Normal Tax Rates:

Total income Surcharge Rate
< 50 L Nil
> 50 L <1 cr 10% of income tax
> 1 cr < 2 cr 15% of income tax
> 2 cr < 5 cr 25% of income tax
> 5 cr 37% of income tax

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CMA FINAL - DT BCCA BASIC CONCEPTS

Under Optional Tax rates:

Total income Surcharge Rate

< 50 L Nil
> 50 L <1 cr 10% of income tax
> 1 cr < 2 cr 15% of income tax
> 2 cr 25% of income tax

✓ Others

Persons Total income >1cr <10cr Total income >10cr

Firm /LLP, local 12% 12%
authority.
Domestic company, 7% 12%
Cooperative society
Foreign company 2% 5%
Total income >50 L <1 cr Total income >1 cr
AOP Consisting only
10% 15%
companies as members

❖ Optional tax rates:

Section Assesee Rates
Income tax rate
0-3,00,000 Nil
3,00,001-6,00,000 5%
6,00,001 -9,00,000 10%
115BAC
9,00,001-12,00,000 15%
Individual/HUF/AOP/BOI, AJP
12,00,001-15,00,000 20%
Above 15,00,000 30%
Surcharge rate: refer above

25.168%
115BA A Other domestic companies
{Tax@22%+surcharge@10%+H&EC@4%}

Domestic Company setupand

registered on or after
17.16%
115BA B 1/10/2019 and manufacturing
{Tax@15%+surcharge@10%+H&EC@4%}
articles or things before
31/03/2024.
25.168%
115BAD Cooperative societies
{Tax@22%+surcharge@10%+H&EC@4%}
manufacturing co-operative
society, resident in India setup
115BAE and registered on or after 17.16%
1/04/2023 and manufacturing {Tax@15%+surcharge@10%+H&EC@4%}
articles or things before

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CMA FINAL - DT BCCA BASIC CONCEPTS

31/03/2024.

❖ Special tax rates: These Rates applicable to all assesses.

Incomes Tax rate
Long term capital gain u/s 112A In excess of ₹1,00,000 onlytaxable
(10% flat rate)
Long term capital gain u/s 112 20% flat rate
Short term capital gain u/s 111A 15% flat rate
Lottery income u/s 115BB 30% flat rate
Net winnings from online games u/s 115BBJ 30% flat rate
Deemed income u/s 115BBE 60% flat rate
Short term capital gain other than section 111A is taxable at normal tax rates.
❖ Health & education cess:
✓ Applicable to all assesses
✓ @4% on (income tax and surcharge)
4. Rebate [Sec 87A]:

Under Normal tax rates Under optional tax rates

➢ Applicable to RESIDENT Individual, ➢ If total income of such individual does not
Whose total Income < ₹ 5,00,000. exceed 7,00,000.
➢ Rebate is tax payable or ₹ 12,500 Rebate is tax payable or ₹ 25,000 whichever is
whichever is less. less.
➢ If total income of such individual exceeds
7,00,000.
✓ Total income (-) 7 lakhs (S1)
✓ Compute income-tax liability on total income
(S2)
✓ If S2 > S1, rebate under section 87A would be
a (S2– S1).

➢ Rebate shall be reduced before adding education cess.

➢ Rebate cannot be claimed on long term capital gains which are chargeable to tax at 10%
(Sec 112A capital Assets)
5. Rounding off (Sec 288A & 288B):

➢ The Net total income computed and the tax payable should be rounded off to nearest multiples
of 10 Rupee.

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6. Maximum marginal rate and Average Rate of tax:

➢ “Average Rate of tax” means the rate arrived at by dividing the amount of income-tax
calculated on the total income, by such total income.
➢ “Maximum marginal rate” to mean the rate of income-tax (including surcharge on the income-
tax, if any) applicable in relation to the highest slab of income in the case of an individual, AOP /
BOI, as the case may be, as specified in Finance Act of the relevant year.
7. Revenue receipts vs Capital receipts:

➢ Revenue receipts:
→ Meaning: income earned by way of utilizing the source of income.
→ Taxability: always taxable unless otherwise exempted.
➢ Capital receipts:
→ Meaning: income earned by way of sale of the source of income.
→ Taxability: always exempted unless otherwise taxable.
8. Computation of marginal relief:

➢ Step-1: Compute the tax on total income (Including applicable surcharge)

➢ Step-2: Compute the tax on 50L/1cr/2cr/5cr/10cr (Including surcharge/Reduce the rate
of surcharge) + Income over 50L/1cr/2cr/5cr/10cr.
➢ Step-3: Marginal relief: Step 1 (-) Step 2 (*)
➢ Step-4: Tax liability: Step 1 (-) Step 3+ H&E cess
(*) If amount as per Step-2 is more than Step-1, then marginal relief is taken as nil.
9. Diversion of income vs Application of income:

Diversion of income Application of income

➢ Diversion refers when there is overriding ➢ There is no overriding title in this case.
title at the source from which income is
earned.
➢ Obligation on the source of Income. ➢ Obligation on the receipt of Income.
➢ Due to Obligation, the income is diverted ➢ The discharge of obligation taken place
at source before it reaches to the after the income reaches to the
assessee. Assessee.
➢ The Income is not included in the income ➢ Income is included in the income of the
of the assessee. assessee.

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CMA FINAL - DT BCCA RETURN OF INCOME

RETURN OF INCOME
1. Sec 139(1): Filing of Return of Income:

Following persons are compulsorily required to file ROI:

1) Company, Partnership Firm (including LLP)
2) Other Assesses: If GTI [before claiming exemption under any section of series 54] exceeds
Basic exemption limit.
3) Resident Individual (ROR)
✓ Beneficial Owner of any asset (including Financial Interest) located outside India
&Has signing authority in any bank account outside India
✓ Beneficiary of any asset (including Financial Interest) located outside India

Note: If Beneficial Owner already includes income from such asset in his ROI, then
Beneficiary is not required to file ROI.

4) Person
• Deposited aggregate > ₹1 crore in current A/c of Bank / Co-operative bank; or
• Incurred Foreign Travel Expenditure of > ₹2,00,000 for himself / any other person;
or
• Incurred Electricity Expenditure of > ₹1,00,000
• If his Total Sales / Turnover / Gross Receipts in Business > ₹60,00,000 during the
PY; or
• If his Gross Receipts in Profession > ₹10,00,000 during the PY; or
• If the aggregate of TDS & TCS during the PY, in the case of the person, is ≥ ₹25,000 (&
in case of Senior Citizen ≥ ₹50,000); or
• The deposit in one or more Savings A/c of the person, in aggregate, is ≥ ₹50,00,000
during the PY.
5) Other Entities
• Trust [Section 139(4A)]: If Total Income before exemption u/s 11 exceeds Basic
Exemption Limit.
• Political Party [Section 139(4B)]: If Total Income before exemption u/s 13A exceeds
Basic Exemption Limit.
• Research association, News Agencies, Institutions etc. u/s 10 [Section 139(4C)]:
If Total Income before exemption u/s 10 exceeds Basic Exemption Limit.
• University, College, Institution u/s 35 [Section 139(4D)]: Mandatory.
• Business Trust [Section 139(4E)]: Mandatory.
• Investment Fund [Section 139(4F)]: Mandatory.

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CMA FINAL - DT BCCA RETURN OF INCOME

DUE DATE OF FILING ROI

Assessee who is required to furnish Transfer Pricing Report u/s 92E 30th Nov of AY
• Company
• Audit Requirement under Income Tax Act or any law 31st Oct of AY
• Partner of Firm where accounts are to be audited & Partners of such Firm
Others 31st July of AY

Consequences for not filing ROI with in due date u/s 139(1):
✓ Penalty u/s 271F
✓ Interest u/s 234A
✓ Face best judgement assessment u/s 144
✓ Fess u/s 234F
➢ If total income of person does not exceed ₹ 5 lakhs, fees payable shall
not exceed ₹1,000.
➢ Otherwise, ₹5,000
Forms – Return of income:
Rule 12 provides the following Form for filing a return of income for different Assessee:
ITR 1 (SAHAJ) For Individual having Income from Salaries & Income from House Property
(one) & Income from Other Sources (Except Casual Income) and his Total
Income up to 50 lakhs.

ITR 2 For individual & HUF not having PGBP income.

ITR 3 Ind / HUF/ P. Firm (Other than LLP) having Income under PGBP head
ITR 4 (SUGAM) Ind / HUF/ P. Firm (Other than LLP) having Income under PGBP head
Declared under Presumptive Taxation Provisions.
ITR 5 For a person other than Ind, HUF, Company, Person who are filing ITR 7
(LLP)
ITR 6 For Companies other than Companies claiming exemption u/s 11.
ITR 7 Persons including companies who required to file return u/s
139(4A)/(4B)/(4C)/(4D)/(4F).
ITR V Income Tax Return Verification Form [Where the data of the aforesaid
Return of Income has been transmitted electronically without digital
signature]

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Mode of furnishing Income-tax Return:

Mode of Filing
Paper Return Electronic Return Transmitting the data in the Transmitting the data
with return electronically electronically in the
Digital Signature and return u n de r
e l e c t r o n i c verification
there after submitting the
code.
verification of the return in
Form ITR-V

Person Condition Mode

Company -
Political Party - Electronically with

Firm or LLP or Individual digital sign

Audit u/s 44AB required
or HUF
Where total income assessable during
the previous year of a person, being an
individual of the age of 80 years or
Any of the given
Individual more at any time during the previous
mode
year, and who furnishes the return in
Form number SAHAJ (ITR-1) or Form
number SUGAM (ITR-4)
Any mode other than
Any other person -
paper mode
26AS Statement:
The following details (on yearly basis) have been provided in 26AS statement:
a) Advance tax, Self-Assessment Tax and Regular Assessment Tax paid by the Assessee
b) Tax paid through Tax Deducted at Source (TDS) or TCS on behalf of the Assessee
c) Refund issued by the Department to the Assessee
d) Details of turnover furnished in GSTR-3B
e) Details of specified financial transaction (SFT)
Functionalities available at e-Filing Portal [www.incometax.gov.in]
Few of the functionalities available at e-filing portal are as follow:
a) View Form 26AS
b) View (with download facility) e-Filed Return / Form
c) Download pre-filled json
d) e-Verify Return

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e) Generate EVC
f) Add / Disengage CA
g) Add / Register as Representative
h) Filing of Returns
i) Filing of return in response of notice u/s 139(9)
j) Aadhar linking
k) e-Proceedings
l) Filing of appeal to CIT(Appeals)
m) Registration or updation of Digital Sign
n) Refund reissue request
o) Validation of Bank Account or Demat Account
p) Profile updation
2. Sec 139(1C): CG May Exempt Class of Person to file ROI
➢ Central Government may by notification specify such class classes of persons who will be
exempted from the requirement of filing of return.

➢ Relaxation from filing of ROI – In case of specified senior citizen if following conditions are
satisfied:
i. person is resident having 75 years or more.
ii. they should have only pension income & interest credited to single bank account
(specified bank).

iii. specified senior citizen needs file a declaration with specified bank.
iv. if specified bank deducted the TDS u/s 194P on such income.
3. Sec 139(3): Loss Return

ROI is required to be filed up to due date given u/s 139(1) to carry forward following losses of
current year:
a) Business Loss
b) Capital Loss
c) Loss from activity of owning & maintaining race horses
d) Specified business loss u/s 35AD.
Note:
• HP Loss & Unabsorbed Depreciation can be c/f even if ROI is filed late.
• Loss can be c/f even if ROI is filed after due date due to genuine reasons & delay is
condoned by

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Loss up to 10 Lacs CIT / PCIT

Loss more than 10 Lacs but up to 50 Lacs CCIT / PCCIT
Loss more than 50 Lacs CBDT

4. Sec 139(4): Belated Return

If ROI is not filed up to due date, Belated Return can be filed up to earlier of:
a) 3 months prior to end of relevant AY i.e., 31st December of AY;
or
b) Before completion of Assessment
5. Sec 139(5): Revised Return

If there is any omission or wrong statement in ROI filed u/s 139(1), 139(3) or 139(4), assesses can
file Revised Return up to earlier of:
a) 3 months prior to end of relevant AY i.e., 31st December of AY;
or
b) Before completion of Assessment

Note:
• It substitutes original return in all aspects (except date).
• Assessee can revise ROI any no. of times.
• ROI can be revised even after receiving intimation u/s 143(1) or Refund.
• Return filed pursuant to notice u/s 142(1) cannot be revised.
• Revising Original Return can be done only by the way of filing Revised ROI u/s 139(5) and
not by filing plain letter or Revised Statement of Income.
• Fresh claim before AO can be made only by filing a revised ROI.

6. Sec 139(9): Defective Return

1. Return can be considered defective if
a. ROI not filed in prescribed form
b. The annexure, statements and columns in the return of income have been duly filled in.
c. Proof of Tax Payment not attached with ROI
d. Report u/s 44AB not submitted
2. AO shall intimate defect to Assessee and give opportunity to rectify the defect within 15
days or extended time.
3. If Assessee does not rectify the defect, then ROI shall be treated as Invalid [Void ab
Initio].

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Note: Currently, the assessee is required to furnish paper-less return. i.e., no documents, proof or
report (other than some specified report required to be furnished electronically) is required to be
attached with return of income.
7. Sec 139A: Permanent Account Number [PAN]

Following persons are required to apply for allotment of PAN:

1) Every person who is assessable to tax [Required to file ROI]
2) Every person carrying on B&P & whose Total Turnover / Gross Receipts exceeds or likely to
exceed ₹5,00,000 in any PY.
3) Trust
4) Resident Person (other than Individual) who enters into Financial Transactions of aggregate
₹2,50,000 or more & Director / Partner / Principal Officer of such Person.

Quoting of PAN is mandatory in:

1) In all Returns
2) In all Challans of Payment of Tax
3) In all documents relating to specified transactions
4) Sale / Purchase of Motor Vehicle other than 2-wheelers.
5) Opening a Current A/c with Bank or Co-operative Bank.
6) Application for issue of Credit / Debit Card.
7) Opening of Demat A/c.
8) Payment to Hotel or Restaurant in cash exceeding ₹50,000.
5) Payment for Foreign Travel or purchase of Foreign Currency in cash exceeding ₹50,000.
6) Payment to Mutual Fund for purchase of units exceeding ₹50,000.
7) Payment to Company / Institution for acquiring Debentures or Bonds exceeding ₹50,000.
8) Cash Deposit with Bank / Co-operative Bank / Post Office exceeding ₹50,000 in a day
9) Payment of Life Insurance Premium exceeding ₹50,000 in FY.
10) Sale or Purchase of any Immovable Property exceeding ₹10,00,000.
11) Sale or Purchase of any Goods / Services exceeding ₹2,00,000 per transaction.
• Person intends to enter into following transactions – at least 7 days before the date on
which he intends to enter into said transaction.
• Cash deposits aggregating ₹20 lakhs or more in a FY, in one or more accounts with bank
or co-op bank.
• Cash withdrawals aggregating ₹ 20 lakhs or more in a FY, in one or more account with a
bank or a co-op bank.

12) Opening of current account or cash credit account with a bank or a co-op bank.

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8. Sec 139AA: Quoting of Aadhaar Number

Every person is required to quote Aadhar Number

a) In the application form for allotment of PAN
b) In ROI
Note:
• If Aadhar Number is not available, the person shall quote Enrolment ID of Aadhar
Application Form.
• Every person who has been allotted PAN before 01-07-2017 and who is eligible to obtain
Aadhaar number, shall intimate his Aadhaar number to such authority on or before specified
date (31-03-2022).
• In case of failure to intimate the Aadhaar number, the PAN allotted to the person shall be
made inoperative.

Fee for default relating to intimation of Aadhaar number [Sec. 234H]: Where a person fails to
intimate his Aadhaar number on or before prescribed date, he shall be liable to pay such fee not
exceeding ₹ 1,000.

Specified in rules:
➢ Link between 01/04/2022 till 30/06/22: ₹500
➢ Link on or after 01/07/2022: ₹ 1000
Non-Applicability:
1) Residing in Assam, J&K & Meghalaya.
2) Non-Resident
3) Age of 80 years or more at any time during PY
4) Not a citizen of India
9. Sec 139B: Tax Return Preparer [TRP]
1) Specified class of people can file their ROI through TRP
2) What do you mean by Specified Class of People?
It means any person other than:
➢ Company
➢ Audit requirement under Income Tax Act or any other law
3) What do you mean by TRP?
It means an individual who is authorised to act as TRP by CBDT other than following:

➢ Chartered Accountant (CA)

➢ Legal Practitioner

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➢ Officer of Scheduled Bank

➢ Employee of Specified Class of Persons

10. Sec 140: Verification of Return

In case of Verified By
✓ Individual ➢ Himself
✓ If Individual not present in India / Mentally ➢ Person competent to verify on his
Incapacitated. behalf

✓ HUF ➢ Karta
✓ If Karta not present in India / Mentally ➢ Any adult member of HUF
Incapacitated
✓ Partnership Firm ➢ Managing Partner
✓ If no Managing Partner ➢ Any Adult Partner
✓ LLP ➢ Designated Partner
✓ If no Designated Partner ➢ Any Partner
✓ Company ➢ Managing Director
✓ If no Managing Director ➢ Any other Director
✓ Company under liquidation ➢ Liquidator
✓ If Corporate Insolvency Resolution Process ➢ Insolvency Professional
Application Admitted ➢ A person holding a valid power of
✓ Non-resident company attorney.
✓ Political Party ➢ CEO
✓ Local Authority ➢ Principal officer
✓ Any Other Person ➢ Person competent to verify

11. Sec 140A: Self Assessment

• Assesses is required to pay due Tax before filing of ROI along with Interest & Fees.
• If there is short payment, then amount paid is first adjusted towards Fees, then Interest
& balance towards Tax.
12. Sec 139(8A): Updated Return
a) Who can file updated return: Any person, whether or not he has furnished a return u/s 139(1)
or (4) or (5), for an assessment year, may furnish an updated return of his income or the income
of any other person in respect of which he is assessable under this Act, for the previous year
relevant to such assessment year.
b) Time limit for filing updated return: At any time within 24 months from the end of the
relevant assessment year.
c) The updated return is accompanied by the proof of payment of tax as required u/s 140B.

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Notes:

• An updated return cannot be filed, if the updated return:

a) is a return of a loss; or
b) a person cannot reduce his tax liability by filing updated return]; or
c) results in refund or increases the refund due on the basis of return furnished u/s 139(1)
or (4) or (5).

• A person shall not be eligible to furnish an updated return, where:

a) a search has been initiated u/s 132 or books of account or other documents or any
assets are requisitioned u/s 132A in the case of such person; or
b) a survey has been conducted u/s 133A [other than sec. 133A(2A)], in the case such
person; or
c) a notice has been issued to the effect that any money, bullion, jewellery or valuable
article or thing, seized or requisitioned u/s 132 or 132A in the case of any other person
belongs to such person; or
d) a notice has been issued to the effect that any books of account or documents, seized
or requisitioned u/s 132 or 132A in the case of any other person, pertain or pertains
to, or any other information contained therein, relate to, such person.

• No updated return shall be furnished by any person for the relevant assessment
year, where:
a) an updated return has already been furnished by him for the relevant assessment year;
or
b) any proceeding for assessment or reassessment or re computation or revision of income
is pending or has been completed for the relevant assessment year in his case; or
c) the Assessing Officer has information in respect of such person for the relevant
assessment year in his possession under the Smugglers and Foreign Exchange
Manipulators (Forfeiture of Property) Act, 1976 or the Prohibition of Benami Property
Transactions Act, 1988 or the Prevention of Money-laundering Act, 2002 or the Black
Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 and
the same has been communicated to him, prior to the date of furnishing of return under
this sub-section; or
d) information for the relevant assessment year has been received under an agreement
referred to in sec. 90 or 90A in respect of such person and the same has been
communicated to him, prior to the date of furnishing of return under this sub-section.

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d) Sec 140B: Tax on Updated Return

❖ Where Assessee has not furnished return earlier:

Where no return of income u/s 139(1) or (4) has been furnished by an Assessee and tax is
payable, on the basis of updated return to be furnished by such Assessee, after considering:

a) the amount of tax, if any, already paid as advance tax;

b) TDS or TCS;
c) any relief u/s 89;
d) any relief u/s 90 or 91 on account of tax paid in a country outside India;
e) any relief u/s 90A on account of tax paid in any specified territory outside India; and
f) any tax credit claimed to be set off in accordance with the provisions of sec. 115JAA
or 115JD.

The Assessee shall be liable to pay

➢ such tax with interest and fee payable for any delay in furnishing the return or
➢ any default or delay in payment of advance tax, along with the payment of additional
income-tax,
➢ before furnishing the return and the return shall be accompanied by proof of
payment of such tax, additional income-tax, interest and fee.

❖ Where Assessee has furnished return earlier:

Where, return of income u/s 139(1) or (4) or (5) (referred to as earlier return) has been
furnished by an Assessee and tax is payable on the basis of updated return to be furnished
by such Assessee, after considering:
a) the amount of relief or tax referred to in sec. 140A (1), the credit for which has been
taken in the earlier return;
b) TDS or TCS on any income which is considered in computing total income and which
has not been included in the earlier return;
c) any relief claimed u/s 90 or 91 on account of tax paid in a country outside India on
such income which has not been included in the earlier return;
d) any relief claimed u/s 90A on account of tax paid in any specified territory outside
India on such income which has not been included in the earlier return;
e) any tax credit claimed, to be set off in accordance with the provisions of sec. 115JAA
or 115JD, which has not been claimed in the earlier return; and
f) as increased by the amount of refund, if any, issued in respect of such earlier return.

The Assessee shall be liable to pay

➢ such tax with interest and fee payable for any delay in furnishing the return or
➢ any default or delay in payment of advance tax, along with the payment of additional
income-tax,

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➢ before furnishing the return and the return shall be accompanied by proof of
payment of such tax, additional income-tax, interest and fee.
❖ Computation of Additional Income Tax:
The additional income-tax payable at the time of furnishing the updated return shall

if such return is furnished after expiry of the 25% of aggregate of tax (+

time available u/s 139(4) or (5) and before surcharge + cess) and interest
completion of the period of 12 months from the payable on tax calculated
end of the relevant assessment year. above.
if such return is furnished after the expiry of 50% of aggregate of tax (+
12 months from the end of the relevant surcharge + cess) and interest
assessment year but before completion of the payable on tax calculated
period of 24 months from the end of the above.
relevant assessment year.

AMENDMENT: To clarify the above provision, an amendment has been made in sec 140. After
amendment, interest shall be payable under sec 234B is

= (advance tax on assessed tax) – (advance tax paid & claimed as credit in earlier return).

13. SEC 170A - Effect of Order of Tribunal or Court in Respect of Business

Reorganizations

Requirement to file Modified Return in ITR-A: In a case of business reorganization, where prior

to the date of order of a High Court or Tribunal or an Adjudicating Authority as defined in section

5(1) of the Insolvency and Bankruptcy Code, 2016, as the case may be, any return of income has been

furnished by the successor under the provisions of section 139 for any assessment year relevant to

the previous year to which such order applies, such successor has to furnish, within a period of six

months from the end of the month in which the said order was issued, a modified return in Form

ITR-A in accordance with and limited to the said order. The said return of income has to be furnished

electronically under digital signature.

N.

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INCOME TAX AUTHORITIES

1. INCOME TAX AUTHORITIES (SEC 116)

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2. APPOINTMENT OF INCOME TAX AUTHORITIES (SEC 117)

3. CENTRAL BOARD OF DIRECT TAXES (CBDT)

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4. POWERS OF CBDT (SEC 119)

5. TAX PAYERS CHARTER (SEC 119A)

6. JURISDICTION OF IT AUTHORITIES (SEC 120)

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7. JURISDICTION OF AO (SEC 124)

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8. POWER TO TRANSFER CASES (SEC 127)

9. SUCCESSION OF IT AUTHORITY (SEC 129)

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10. FACE LESS JURISDITION OF IT AUTHORITY (SEC 130)

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ASSESSMENT PROCEDURES
1. Sec 140A: Self-Assessment
• Assesses is required to pay due Tax before filing of ROI along with Interest & Fees.
• If there is short payment, then amount paid is first adjusted towards Fees, then Interest &
balance towards Tax.
2. Sec 142: Inquiry Before Assessment

Sec 142(1): Issue of Notice to Assessee

U/s 142(1) AO collects information from the Assessee.

If Assessee not file ROI within time u/s

Best Judgment Assessment u/s
Return 139(1), AO may issue notice requiring him
144
to furnish ROI.
For making Assessment, AO can issue notice to

→ Produce Books & Documents (Maximum 3

Books &
years prior to relevant PY. Search u/s 132
Information
→ Furnish information including details

of Assets & Liabilities.

Sec 142(2): Inquiry

U/s 142(2) AO collects information from any source.

For the purpose of obtaining full information in respect of income/loss of any person, The AO make
such inquiry.

3. Sec 142(2A) TO (2D): Special Audit & Inventory Valuation

a. AO may at any stage of proceeding can direct Special Audit/inventory valuation having regards
to.
i. Complexities in Accounts
ii. Volume of Accounts
iii. Doubts about Correctness of Accounts
iv. Multiplicity of Transactions in the Accounts
v. specialised nature of business activity of the Assessee
vi. In the interest of revenue
b. Direction can be issued with prior approval of PCCIT/PCIT/CCIT/CIT.
c. Opportunity of being heard must be given to Assessee before directing.
d. Direction can be given even if Books of Accounts already audited u/s 44AB or any other law.

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e. Books of Accounts audited by CA & Inventory valued by Cost accountant nominated by

PCCIT/PCIT/CCIT/CIT & remuneration of auditor shall be paid by CG.
f. Audit Report/ Inventory valuation report has to be submitted within time allowed by AO which
can be extended but maximum time shall not exceed 180 days from date of direction of
Special Audit.
This time of 180 days from the date on which the Assessing Officer’s direction is received by
the Assessee.
g. The chartered accountant/cost accountant shall submit the report in Form 6B to the Assessee.
h. If Assessee fails to get Special Audit done, then AO can make Best Judgment Assessment u/s
144 & attracts penalty and prosecution.

4. Sec 142(3): Opportunity of Being Heard w.r.t 142(2)/142(2A)

An opportunity of being heard must be given to Assessee
➢ In respect of any information gathered on the basis of any inquiry u/s 142(2) or any audit
u/s 142(2A).
and
➢ Proposed to be utilised for the purpose of the assessment.

5. Sec 142A: Reference to Valuation Officer

a. AO may for purpose of assessment make a reference to VO to estimate value of any asset,

property or investment.

b. The VO is required to estimate the value of the asset, property or investment after

considering the evidence produced by the Assessee and any other evidence gathered, after

giving an opportunity of being heard to the Assessee.

c. If the Assessee does not co-operate with the directions of the Valuation Officer, then he

estimates the value of the asset, property or investment to the best of his judgment.

d. VO shall send a copy of Valuation Report to AO & Assessee within 6 months from end of the

month in which reference was made.

e. AO may consider such report in making the assessment after giving opportunity of being heard

to the Assessee.

6. Sec 142B: Faceless Inquiry / Valuation

The Central Government is empowered to make faceless inquiry and valuation scheme.

a. Issuing notice under section 142(1) or

b. Making inquiry to obtain full information in respect of the income or loss of any person

under section 142(2) or

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c. Directing the Assessee to get the accounts audited by an accountant or inventory valuation

by a cost accountant under section 142(2A) or

d. Making a reference to the valuation officer to estimate the value of any asset, property or

investment under section 142A.

Shall be in a faceless manner, through automated allocation, in accordance with section 144B with

reference to making faceless assessment of total income or loss of Assessee.

The objective of the scheme is to impart greater efficiency, transparency and accountability

by:

▪ Eliminating the interface between the income-tax authority or Valuation Officer and the

Assessee or any person to the extent technologically feasible;

▪ Optimising utilisation of the resources through economies of scale and functional

specialisation;

▪ Introducing a team-based issuance of notice or making of enquiries or issuance of

directions or valuation with dynamic jurisdiction.

7. Sec 143(1): Processing of Return /Intimation /Summary Assessment

a. All returns shall be processed u/s 143(1).

b. It is a computerised preliminary assessment or processing of the return of income & following

adjustments are made in Returned Income

• Arithmetical Errors

• Incorrect Claims

- Items inconsistent with another entry

- Deduction exceeding limit

- Information not furnished

• Disallowance of Loss Claim (if ROI of that year is filed after due date)

• Disallowance of Expenditure or Increase in Income indicated in Audit Report but not

considered in computing Total Income in ROI.

• Disallowance of Deduction u/s 10AA & Chapter VI-A Heading C if ROI is filed after
due date.

c. However, before making any such adjustments, intimation (writing or through electronic mode)

has to be given to the assessed requiring him to respond to such adjustments.

If no response is received within 30 days of the issue of such intimation, the processing shall

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be carried out incorporating the adjustments.

d. Based on the above adjustments, final intimation shall be sent to the Assessee (for Demand /

Refund) within 9 months from end of FY in which ROI was filed.

e. An intimation shall also be sent to the Assessee in a case where the loss declared in the return

by the Assessee is adjusted but no tax, interest or fee is payable by, or no refund is due to,

him.

8. Sec 143(3): Scrutiny Assessment/Regular Assessment

a. Processing of Return u/s 143(1) is necessary even if notice has been issued u/s 143(2).

b. Issuance of Notice u/s 143(2) is mandatory for Scrutiny Assessment u/s 143(3).

Section No Provision
• For making Scrutiny Assessment, AO is required to serve

Notice of notice.
143(2)
Scrutiny • It has to be served within 3 months from end of FY in

which ROI was filed.

Order of Based on Material & Evidences furnished by Assessee in response

Scrutiny to notice u/s 143(2), AO shall determine the Income / Loss of

Assessment Assessee along with determination of Tax Payable / Refundable.

143(3)

Time Limit for

Assessment order shall be passed within 9 months from the end of
completion of
relevant AY.
Assessment

Note: In case of Institutions etc. u/s 10, AO shall pass order u/s 143(3) without giving exemption

u/s 10 only if he is of the view that activities carried out in contravention of provisions and

• He has intimated the CG & higher authorities about contravention.

• Approval granted to such institution has been withdrawn.

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9. Sec 144: Best judgement Assessment

a. AO shall make an Assessment to the best of his judgement & knowledge in following cases:

1) Failure to furnish ROI u/s 139(1) / 139(4) / 139(5)/ 139(8A)

2) Failure to comply with Notice u/s 142(1).

3) Failure to comply with Special Audit Directions u/s 142(2A)

4) Failure to comply with Notice u/s 143(2).

Note: AO shall issue SCN giving an opportunity to be heard to the Assessee. [Except Point 2]

b. Discretionary Best Judgement Assessment In following cases also, Assessment may be

completed as per Section 144

1) AO not satisfied about completeness / correctness of Books & Documents of Assessee.

2) Correct Method of Accounting was not followed by Assessee.
3) ICDS have not been followed by Assessee.

c. Time Limit for Completion of Assessment u/s 144: Assessment order shall be passed within

9 months from the end of the relevant AY.

10. Sec 144A: Power of J.C. to Issue Direction

a) A JOINT COMMISSIONER (J.C.) may his own motion, or any the application of Assessee or on

reference made by A.O. call to examine the record of any proceeding in which an assessment is

pending.

b) It is necessary then J.C may issue directions for the ground of A.O. [AC/DC/ITO] to be enable

him to complete the assessment.

c) Direction shall be Binding on the A.O.

d) Direction prejudicial to Assessee can be issued only after giving opportunity of being heard.

e) No appeal can be filed against direction. Appeal can be filed against assessment order.

11. Sec 144B: Faceless Assessment

ASSESSMENT CENTRES & UNITS:

1) National E-Assessment Centre [NEC]: Centralized body at Delhi

2) Regional E-Assessment Centre [REC]: Regional Centres

• Assessment Unit [AU]: Assessment Function

• Verification Unit [VU]: Verification Function

• Technical Unit [TU]: Technical Assistance

• Review Unit [RU]: Review of Draft Order

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PROCEDURE:
1) NEC shall serve notice u/s 143(2) to Assessee; or NEC shall intimate the Assessee for Section

144.

2) NEC shall assign case to any AU in any REC through Automated Allocation System [AAS].

3) AU may make request to NEC for

Obtaining information, documents & evidence NEC will issue notice to Assessee or such other

from Assessee or any other person person for submission of information &documents

Conducting Inquiry & Verification by VU NEC will assign to any VU through AAS

Technical Assistance from TU NEC will assign to any TU through AAS

4) On the basis of Material & Evidences, AU make Draft Assessment Order u/s 143(3) / 144 &
send to NEC.
5) NEC will provide opportunity of being heard to Assessee, if variation is harmful to Assessee.
6) NEC may assign Draft Order to any RU through AAS.
7) NEC will finalize Draft Order & send copy of Final Order to Assessee along with Demand /
Refund.
8) All communication between NEC, REC, AU, VU, TU, RU, Assessee or any other person shall be
exclusively by Electronic Mode.
9) Personal Hearing is not allowed in NEC, REC or any unit. However, NEC may allow personal
hearing through Video Conferencing.
10) NEC can transfer the case at any stage to jurisdictional AO.

12. Sec 144C: Reference to Dispute Resolution Panel

a) To facilitate expeditious resolution of disputes, a panel consisting of 3 Commissioner of Income

Tax (CIT) is constituted.

b) Eligible Assessee who can file objection to DRP

➢ Non-Resident / Foreign Company

➢ Any Person relating to Transfer Pricing Case [If variation arises due to TPO order]
c) AO shall forward Draft Order to Eligible Assessee.

d) Assessee shall within 30 days of receipt of Draft Order either Accept/File Objection to DRP.

e) DRP may confirm, reduce or enhance variations of Draft Order.

f) DRP shall issue directions within 9 months from end of month in which Draft AO order is

forwarded to the Assessee.

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g) DRP shall issue directions after considering following:

➢ Draft order;

➢ Objections filed by the Assessee;

➢ Evidence furnished by the Assessee

➢ Report, if any, of the Assessing Officer, Valuation Officer or Transfer Pricing Officer

or any other authority;

➢ Records relating to the draft order;

➢ Evidence collected by, or caused to be collected by, it; and

➢ Result of any enquiry made by, or caused to be made by it

h) Directions issued by DRP shall be binding on AO.

i) Order passed by AO on the basis of directions of DRP shall be directly appealable before ITAT.

Note: Eligible Assessee has a choice

• File objection before DRP against Draft Assessment Order; or

• Not to exercise this option & file appeal later before CIT(A) against Final Assessment

Order passed by AO.

12. Sec 147- 152: Income Escaping Assessment

Sec 148: Notice for Assessment U/S 147

• AO has to serve notice to Assessee requiring him to furnish ROI within specified time in

notice.

within a period of 3 months from the end of the month in which such notice is issued or such

further period, as may be allowed by the AO on the basis of an application made in this regard

by the Assessee.

However, where return of income is furnished beyond the period allowed above, such return

would not be deemed to be a return under section 139.

• Notice can be issued only when-

- there is information with the AO which suggests that the income chargeable to tax has

escaped assessment in the case of the Assessee for the relevant assessment year and

- the AO has obtained prior approval of the specified authority to issue such notice.

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Information means:

a) any information in the case of the Assessee for the relevant assessment year in accordance

with the risk management strategy formulated by the Board from time to time; or

b) any audit objection to the effect that the assessment in the case of the Assessee for the

relevant assessment year has not been made in accordance with the provisions of this Act;

c) any information received under an agreement referred to in section 90 or section 90A; or

d) any information made available to the Assessing Officer under the scheme notified in

respect of faceless collection of information under section 135A; or

e) any information which requires action in consequence of the order of a Tribunal or a

Court.

Cases where Assessing Officer shall be deemed to have information-

a) a search is initiated under section 132 or books of account, other documents or any

assets are requisitioned under section 132A, on or after 01.04.2021, in the case of the

Assessee; or

b) a survey is conducted under section 133A, other than survey conducted for verifying

tax is deducted or collected at source under section 133A(2A), on or after 01.04.2021, in

the case of the Assessee; or

c) the Assessing Officer is satisfied, with the prior approval of the Principal Commissioner

or Commissioner, that any money, bullion, jewellery or other valuable article or thing,

books of account or documents seized or requisitioned under section 132 or section

132A in case of any other person on or after 01.04.2021, belongs to the Assessee; or

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Sec 148A: AO has to follow the following steps before issue of notice u/s 148
a. Conduct any inquiry (if required).

b. Provide an opportunity of being heard to Assessee by serving Show Cause Notice [SCN] as

to why notice u/s 148 shouldn’t be issued. [Reply by Assessee should be within time

specified in notice being 7-30 days.]

c. Consider the reply of Assessee.

d. Decide by passing order whether it is a fit case to issue notice u/s 148.
Non-Applicability of Section 148A

a) a search is initiated under section 132 or books of account, other documents or any

assets are requisitioned under section 132A, on or after 01.04.2021, in the case of the

Assessee; or

b) a survey is conducted under section 133A, other than survey conducted for verifying

tax is deducted or collected at source under section 133A(2A), on or after 01.04.2021,

in the case of the Assessee; or

c) the Assessing Officer is satisfied, with the prior approval of the Principal Commissioner

or Commissioner, that any money, bullion, jewellery or other valuable article or thing,

books of account or documents seized or requisitioned under section 132 or section

132A in case of any other person on or after 01.04.2021, belongs to the Assessee; or

d) any information made available to the Assessing Officer under the scheme notified in

respect of faceless collection of information under section 135A;

Sec 149: Time Limit for Issue of Notice

General Case Within 3 years from the end of the RAY.

Within 10 years from the end of the relevant assessment year if the Assessing
Officer has in his possession books of account or other documents or evidence
which reveal that the income chargeable to tax, represented in the form of:

i. an asset;
Special Case ii. expenditure in respect of a transaction or in relation to an event or occasion;
or

iii. an entry or entries in the books of account,

which has escaped assessment amounts to or is likely to amount to ₹ 50 lakh or

more.

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Extended time limit of 15 days would be available in the following cases –

a) where search is initiated or a search for which the last of the authorization is executed or
requisition is made under section 132A after the 15th March of any financial year
b) statement recorded or documents impounded under section 131 i.e., summons or section 133A
i.e., survey, as the case may be, on or before the 31st March of a financial year, in consequence
of, a search initiated or last of the authorization executed under section 132 or a requisition
made under section 132A, after the 15th March of such financial year,

and

the period for issue of notice under section 148 expires on the 31st March of such financial
year.

Further, notice issued under section 148 and the show cause notice issued under section 148A,
as the case may be, shall be deemed to have been issued on the 31st March of such financial
year.

Where immediately after the exclusion of the mentioned period, the period of limitation
available to the Assessing Officer for passing an order under section 148A does not exceed
seven days, such remaining period shall be extended to seven days.

Sec 147: Income Escaping Assessment/Reassessment/Reopening of Cases

• If any income chargeable to tax has escaped assessment for any AY, AO may assess or

reassess such income or recompute loss / allowance / deduction for such AY.

• AO may also assess any other income that comes to his notice subsequently during course

of proceeding u/s 147.

• Time limit for completion of assessment u/s 147: Within 12 months from end of FY in which

notice is served u/s 148.

Sec 151: Permission from Specified Authority

Within 3 years from end of RAY PCIT/PDIT/CIT/DIT

After 3 years from end of RAY • PCCIT/PDGIT

• CCIT/DGIT
Sec 151A: Faceless assessment of income escaping assessment
The Central Government may make a scheme for the purposes of assessment, reassessment or re-
computation u/s 147 or issuance of notice u/s 148 or 148A or sanction for issue of such notice u/s
151, so as to impart greater efficiency, transparency and accountability by—

▪ eliminating the interface between the income-tax authority and the Assessee or any other
person to the extent technologically feasible;
▪ optimising utilisation of the resources through economies of scale and functional
specialisation;

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▪ introducing a team-based assessment, reassessment, re-computation or issuance or

sanction of notice with dynamic jurisdiction.

Sec 152(1): Rate of taxation

In the case of any assessment or reassessment or re computation made under section 147, the
income escaping assessment would be chargeable to tax at the rate applicable to the respective
years in which such income is liable to be taxed.

13. Sec 153: Time Limit for Completion of Assessment

Assessment u/s Time Limit

143(3) / 144 Within 9 months from end of relevant AY

147 Within 12 months from end of FY in which notice is served u/s 148

In computing above time limits, following period shall be excluded:

Case From Till

Date on which govt.

Contravention by institutions Date on which AO
notification received by
1 etc. u/s 10 & AO informs to govt. informs
A O withdrawing approval

Direction for Special Audit u/s Date on which AO Last date on which Assessee
2
142(2A) directs is required to file report

Reference made to Valuation Date on which AO Date on which report was

3
Officer u/s 142A refers. received by AO

Reference made to Cost

Date on which report was
4 accountant for inventory Date on which AO
refers. received by AO.
valuation u/s 142A

Date on which Rejection

Application made to AAR or Date on which Order / Advance Ruling

5
Board for Advance Ruling application was made received by

Commissioner

6 Where reference made for Date on which Date on which

exchange of information u/s 90 reference made Information is received

7 If Assessment Proceeding Period stay Period stay

stayed by any court

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14. Sec 153(3): Fresh Assessment

An order of fresh assessment [or fresh order u/s 92CA] in pursuance of an order u/s 254, 263 or
264 may be made for setting aside or cancelling an assessment or an order u/s 92CA.

Time limit for making fresh assessment

In case of the order

Time limit
passed
U/s 254 Within 12 months from the end of the financial year in which such order
is received by PCCIT/PCIT/CCIT/CIT.
U/s 263 or 264 Within 12 months from the end of the financial year in which such order
is passed by the PCIT/CIT.

Note: Where an order is cancelled, then fresh assessment shall be made under the same section
[like 143(3) or 144] in which the original assessment was passed.

14. Sec 156: Demand Notice

If any Tax, Interest, Penalty or any other sum is payable / due, then AO shall serve Demand Notice

specifying payment.

Time limit for payment of tax [Sec. 220(1)]: The Assessee should make the payment of amount

demanded within 30 days of service of notice

Where the Assessing Officer has any reason to believe that it will be detrimental to revenue if the

full period of 30 days is allowed, then he may with the previous approval of the Joint Commissioner

direct that the sum specified in the notice.

Interest on delay in payment [Sec. 220(2)]: If the payment is not made within 30 days (or time

allowed in the notice), interest shall be payable @ 1% for every month (or part thereof) of the

delay.

15.Sec 156A: Modification and Revision of Notice in Certain Cases

1) Where demand notice has been issued u/s 156 and demand is reduced as a result of an order of

the Adjudicating Authority (AA) as defined in IBC, 2016, the AO shall modify the demand

payable as per order of AA and shall thereafter serve on the Assessee a revised notice of demand

2) Where the order of AA is modified by the NCLT or the supreme court, as the case may be, the

modified notice of demand as referred to in sub- sec (1), issued by the AO shall be revised

accordingly.

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16.SEC 292BB: Notice of AO Deemed to be Valid in Certain Cases

➢ If Assessee has appeared in any proceedings or co-operated in any inquiry, then It shall be

deemed that notice has been duly served upon him

➢ He cannot raise objection after completion of Assessment that notice was not served or not

served in time or served in improper manner.

However, this deeming provision shall not apply if he raised objection about such defect before

completion of Assessment.

Note: Non-issuance of Notice by Department is not a Curable Defect u/s 292BB.

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