Professional Documents
Culture Documents
su s t on( (
vs susection (4)()
What is the impact of secE BDC (D)
0an there e more than one AE&E for the same
assessee
0an a 6tE 0*$ e made an A& " appl"ing secE
BDC (D)
When will an AddlE 0*$ ecome an AE&E
0an a 0*$ ecome an AE&E rele!ance of secE
BDC (D)
B2
A--'--*+, &))*0'( H A 0A-' -$.D:
- Tn!rcduc!!cn !c Tnccmc - Tn!rcduc!!cn !c Tnccmc
!ux !ux . .
%rior to restructuring of our DepttE, AddlE 1
6tE 0*$s were designated DepE0*$ -ecE D
(D?0) existed ut not secE D (B0).
(FY 2007, w.r.e.f. 1.6.1994)
;oardIs letter dt >-D-CD stated that AddlE
0*$160*$ is entitled to exercise all the
powers and functions of an Assessing
&fficer wor4ing under himE /e can also
finalise the assessment under his
signaturesE
0*$ forwarded the ;oardJs letter to all
AddlE0*$160*$
*n case of ;indal Apparels, the AddlE 0*$
made the assessment orderE
Assessee challenged efore the *$A$, Delhi
that AddlE 0*$ was not an A&, so the order
is in!alidE
::::
B8
A--'--*+, &))*0'( H A 0A-' -$.D:
- Tn!rcduc!!cn !c Tnccmc - Tn!rcduc!!cn !c Tnccmc
!ux !ux . .
Held
-Delhi *$A$, in case of ;indal Apparel !sE A0*$, *$ Appeal +oE 2C>
(Delhi) of DCC3
B>
KD*('0$&( ,'+'(AL &( D*('0$&(L
- Tn!rcduc!!cn !c Tnccmc - Tn!rcduc!!cn !c Tnccmc
!ux !ux . .
( r tor
n r l or
r tor m ns
p rson ppo nt to
r tor
n r l o n om
t x or s t s
m r tor
o n om t x un r
su s t on ( o
s t on n
n lu s p rson
ppo nt un r
t t su s t on to
n t on l
r tor o n om
t x or Jo nt
r tor o n om
t x or n ss st nt
r tor or put
r tor o n om
t x
. . . M O l
. . . . C l D T
. . . . C C s T T
. . . C s T T
./ . . \dd! J! C s
. . T T
/ . \ss!! Dcp Cs
. . T T
. . . T T O s
. . . T T T s
\SSl
SSTN
G
OllT
ClR
. . . . D G s T T
. . . D s T T
./ . . \dd! J! D s
. . T T
/ . \ss!! Dcp Ds
. . T T
. ( ) Scc !8? ! Scurch und sc!zurc "hcrc !hc D!rcc!cr Gcncru! cr
D!rcc!cr cr !hc Ch!c Ccmm!ss!cncr cr Ccmm!ss!cncr cr unv such Jc!n!
D!rcc!cr cr Jc!n! Ccmm!ss!cncr us muv bc cmpccrcd !n !h!s bchu! bv
!hc lcurd, .. , ( ) !hcn \ Thc D!rcc!cr Gcncru! cr D!rcc!cr cr !hc
, , Ch!c Ccmm!ss!cncr cr Ccmm!ss!cncr us !hc cusc muv bc muv uu!hcr!sc
, , unv Jc!n! D!rcc!cr Jc!n! Ccmm!ss!cncr \ss!s!un! D!rcc!cr cr Dcpu!v
, - D!rcc!cr \ss!s!un! Ccmm!ss!cncr cr Dcpu!v Ccmm!ss!cncr cr Tnccmc !ux
, ( ) O!ccr cr l , such Jc!n! D!rcc!cr cr Jc!n! Ccmm!ss!cncr, us !hc cusc
, , muv bc muv uu!hcr!sc unv \ss!s!un! D!rcc!cr cr Dcpu!v D!rcc!cr
- , \ss!s!un! Ccmm!ss!cncr cr Dcpu!v Ccmm!ss!cncr cr Tnccmc !ux O!ccr
..
B?
KD*('0$&( ,'+'(AL &( D*('0$&(L
- Tn!rcduc!!cn !c Tnccmc - Tn!rcduc!!cn !c Tnccmc
!ux !ux . .
. . Cun un \dd! DTT !ssuc u scurch urrun! undcr scc
. . ( ) !8? r scc ? ?!
. . - [ ] Tn !hc cusc c Dr Nu!!n! Muhu]un v D!rcc!cr c Tnccmc !ux ?OO?
, ?5 TTR !?8 Dc!h! H!h Ccur! nc!cd !hu!
, Scc ? bc!ns !!h !hc crds un!css !hc ccn!cx! c!hcr!sc
rcqu!rcs
, "hcrc !hc ccn!cx! sc rcqu!rcs mcun!n muv bc d!crcn!
. !hun !hc !!!cru! mcun!n prcv!dcd !n !hc dc!n!!!cn Scc
. !8? dc!ncs h!crurchv c c!ccrs T \dd! D!rcc!cr us
, u!rcudv !nc!udcd !n !hc D!rcc!cr Gcncru! cr D!rcc!cr
!hcn !! cu!d nc! bc rcqu!rcd !c rccr !c !! scpuru!c!v
. ( ) !n scc !8? !
, Tn!crprc!u!!cn c!uusc !s nc! u pcs!!!vc cnuc!mcn! hus u
, . !!m!!cd mcun!n und !!m!!cd cpcru!!cn "h!!c !v!n
, ccc! !c !! Ccur! mus! nc! crc! !hu! sccpc und
cb]cc! c such u prcv!s!cn !s sub]cc! !c !!s
upp!!cub!!!!v und !hc ccn!cx!
Hc!d
\dd!!!cnu! D!rcc!cr us nc! cmpccrcd !c !ssuc !hc scurch
urrun!
BA
A%%'LLA$' A.$/&(*$*'-
- Tn!rcduc!!cn !c Tnccmc - Tn!rcduc!!cn !c Tnccmc
!ux !ux . .
J|DTCT\RY
. Scc ?
( ) 4
. Scc ?
( ) !G\
. . . Scc ?5? c T T
\c!
( ). Scc ? ?OD Nu!!cnu! Tux
Tr!bunu! mcuns !hc Nu!!cnu!
Tux Tr!bunu! cs!ub!!shcd undcr
scc!!cn 8 c !hc Nu!!cnu! Tux
, Tr!bunu! \c! ?OO5
( ) - ( ) / Scc ? !Ol DCTT \
. ( ) \dd! CTT \
DC
A%%'LLA$' A.$/&(*$*'-
- Tn!rcduc!!cn !c Tnccmc - Tn!rcduc!!cn !c Tnccmc
!ux !ux . .
J|DTCT\RY
. ( ) \RT !?4 ! Thcrc shu!! bc u Suprcmc Ccur! c
Tnd!u
, ccns!s!!n c u Ch!c Jus!!cc c Tnd!u und un!!!
, lur!!umcn! bv !u prcscr!bcs u !urcr numbcr c nc!
. mcrc !hun scvcn c!hcr Judcs
- , ( ) Nc !cn!v !vc v!dc !hc Suprcmc Ccur! Numbcr c Judcs
, \mcndmcn! \c! ( ), . . !O8G ?? c !O8G s ?
. . \RT !4! Thc !u dcc!urcd bv !hc Suprcmc Ccur! shu!!
bc b!nd!n cn u!! ccur!s !!h!n !hc !crr!!crv c
. Tnd!u
. \RT 8GG ( ) ! ! !4 H!h Ccur! mcuns unv Ccur! h!ch !s
dccmcd cr !hc purpcscs c !h!s Ccns!!!u!!cn !c bc u
- H!h Ccur! cr unv S!u!c und !nc!udcs ( ) u unv Ccur!
!n !hc !crr!!crv c Tnd!u ccns!!!u!cd cr
rcccns!!!u!cd undcr !h!s Ccns!!!u!!cn us u H!h
, Ccur! und ( ) b unv c!hcr Ccur! !n !hc !crr!!crv c
Tnd!u h!ch muv bc dcc!urcd bv lur!!umcn! bv !u !c
bc u H!h Ccur! cr u!! cr unv c !hc purpcscs c
" !h!s Ccns!!!u!!cn
CONSTTT|TTON Ol TNDT\ CONSTTT|TTON Ol TNDT\
DB
$A< ('0&='(: &))*0'(
- Tn!rcduc!!cn !c Tnccmc - Tn!rcduc!!cn !c Tnccmc
!ux !ux . .
( ) Scc ? 44 Tux Rcccvcrv O!ccr
mcuns - unv Tnccmc !ux O!ccr hc muv bc uu!hcr!scd
bv !hc Ch!c Ccmm!ss!cncr cr Ccmm!ss!cncr, bv cncru! cr
, spcc!u! crdcr !n r!!!n !c cxcrc!sc !hc pccrs c u
Tux Rcccvcrv O!ccr und u!sc !c cxcrc!sc cr pcrcrm
, such pccrs und unc!!cns h!ch urc ccncrrcd cn cr
, uss!ncd !c un \sscss!n O!ccr undcr !h!s \c! und
" h!ch muv bc prcscr!bcd
- Scc Scccnd Schcdu!c lrcccdurc cr rcccvcrv c !ux
- Cun un \CTT bc u TRO '
( ) . . ( ) rc scc !?O ? r ? 44
- Cun u TTO bc u TRO und un \O u! !hc sumc !!mc '
DD
( ss ss m ns
p rson # om n t x
or n ot r sum o
mon s p l un r
t s t n n lu s
( v r p rson n
r sp t o # om n
pro n un r t s
t s n t n or
t ss ssm nt o s
n om or ss ssm nt o
r n n ts or o
t n om o n
ot r p rson n
r sp t o # s
ss ss l or o t
loss sust n m
or su ot r
p rson or o t
mount o r un u
to m or to su
ot r p rson
( v r p rson # o s
m to n
ss ss un r n
prov s on o t s t
( v r p rson # o s
m to n
ss ss n ult
un r n prov s on o
t s t
Nc! ncccssurv !c huvc uc!uu!
prccccd!ns !n!!!!!u!cd
und pcnd!n cr bc!n
ccns!dcrcd u usscsscc
. [ ] TTO vs DD\ ?OO ?5? TTR
( ) ? SC
D2
%'(-&+
- Tn!rcduc!!cn !c Tnccmc - Tn!rcduc!!cn !c Tnccmc
!ux !ux . .
( p rson n lu s
( n n v u l
( n u un v
m l
( omp n
( v rm
(v n sso t on o
p rsons or o o
n v u ls # t r
n orpor t or not
(v lo l ut or t
n
(v v r rt l
ur l p rson not
ll n # t n n o
t pr n su
l us s
xpl n t on or t
purpos s o t s l us n
sso t on o p rsons or
o o n v u ls or
lo l ut or t or n
rt l ur l
p rson s ll m to
p rson # t r or not
su p rson or o or
ut or t or ur l
p rson # s orm or
st l s or
n orpor t # t t
o t o r v n
n om pro ts or ns
D8
|n!!v c cncrsh!p
/E.E)E
- Tn!rcduc!!cn !c Tnccmc - Tn!rcduc!!cn !c Tnccmc
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Characteristics :
-indi!ided famil" of those to whom /indu Law applies NBA>DO ?3 *$( >DC (-0)
-/*+D. is a person whose parents are /indu & who is rought up a /induEENBA>8O BC4 *$( 438 (-0)
--ingle indi!idual not /.)NBA>4O A> *$( 4A3EEEEED male memers not reGd NBA88O8C *$(DA3(-0)
(ii) an" od" corporate incorporated " or under (ii) an" od" corporate incorporated " or under
the laws of a countr" outside *ndia, or the laws of a countr" outside *ndia, or
(iii) an" institution, association or od" which is or (iii) an" institution, association or od" which is or
was assessale or was assessed as a compan" was assessale or was assessed as a compan"
for an" assessment "ear under the *ndian for an" assessment "ear under the *ndian
*ncome-tax Act, BADD (BB of BADD), or which is *ncome-tax Act, BADD (BB of BADD), or which is
or was assessale or was assessed under this or was assessale or was assessed under this
Act as a compan" for an" assessment "ear Act as a compan" for an" assessment "ear
commencing on or efore the Bst da" of April, commencing on or efore the Bst da" of April,
BA>C, or BA>C, or
(i!) an" institution, association or od", whether (i!) an" institution, association or od", whether
incorporated or not and whether *ndian or non- incorporated or not and whether *ndian or non-
*ndian, which is declared " general or special *ndian, which is declared " general or special
order of the ;oard to e a compan" 7 order of the ;oard to e a compan" 7
%ro!ided that such institution, association or od" %ro!ided that such institution, association or od"
shall e deemed to e a compan" onl" for such shall e deemed to e a compan" onl" for such
assessment "ear or assessment "ears (whether assessment "ear or assessment "ears (whether
commencing efore the Bst da" of April, BA>B, commencing efore the Bst da" of April, BA>B,
or on or after that date) as ma" e specified in or on or after that date) as ma" e specified in
the declaration @ the declaration @
. ( ) S c c ? ? G
D?
0&9%A+:
- Tn!rcduc!!cn !c Tnccmc - Tn!rcduc!!cn !c Tnccmc
!ux !ux . .
(ii) in t*e ca.e o) t*e State o) 7a00u and &a.*0ir, a co0-any )or0ed and
re5i.tered under any la+ )or t*e ti0e 1ein5 in )orce in t*at State 2
(iii) in t*e ca.e o) any o) t*e "nion territorie. o) Dadra and Na5ar %a,eli,
oa, Da0an and Diu, and !ondic*erry, a co0-any )or0ed and re5i.tered
under any la+ )or t*e ti0e 1ein5 in )orce in t*at "nion territory C
!ro,ided t*at t*e re5i.tered or, a. t*e ca.e 0ay 1e, -rinci-al o))ice
o) t*e co0-any, cor-oration, in.titution, a..ociation or 1ody in all
ca.e. i. in India 2
TNDT\N
COMl\NY
lcrc!n
. Cc
lur!!cr u
. Cc
Dcc!urcd u
. Cc
. Scc ?
( ) !
DA
0&9%A+:
- Tn!rcduc!!cn !c Tnccmc - Tn!rcduc!!cn !c Tnccmc
!ux !ux . .
(a) if it is a compan" owned " the ,o!ernment or the (eser!e ;an4 of *ndia
or in which not less than fort" per cent of the shares are held (whether singl"
or ta4en together) " the ,o!ernment or the (eser!e ;an4 of *ndia or a
corporation owned " that an4 @ or
(a) if it is a compan" ha!ing no share capital and if, ha!ing regard to its o#ects,
the nature and composition of its memership and other rele!ant
considerations, it is declared " order of the ;oard to e a compan" in which
the pulic are sustantiall" interested 7
(ad) if it is a compan", wherein shares (not eing shares entitled to a fixed rate of
di!idend whether with or without a further right to participate in profits)
carr"ing not less than fift" per cent of the !oting power ha!e een allotted
unconditionall" to, or acGuired unconditionall" ", and were throughout the
rele!ant pre!ious "ear eneficiall" held ", one or more co-operati!e
societies @
. . , T T \c! . . , T T \c!
!OG! !OG!
38
0&9%A+:
- Tn!rcduc!!cn !c Tnccmc - Tn!rcduc!!cn !c Tnccmc
!ux !ux . .
(D) $he association ma" thereupon e registered accordingl"@ and on registration shall
en#o" all the pri!ileges, and (su#ect to the pro!isions of this section) e su#ect to
all the oligations, of limited companiesE
(a) that the o#ects of a compan" registered under this Act as a limited
compan" are restricted to those specified in clause (a) of su-section (B), and
() that " its constitution the compan" is reGuired to appl" its profits, if an",
or other income in promoting its o#ects and is prohiited from pa"ing an" di!idend
to its memers, the 0entral ,o!ernment ma", " licence, authorise the compan" "
a special resolution to change its name, including or consisting of the omission of
the word QLimitedQ or the words Q%ri!ate LimitedQ@ and section D3 shall appl" to a
change of name under this su-section as it applies to a change of name under
section DBE
EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE-.;-'0$*&+- 4,2 &
8
, Ccmpun!cs \c! !O5G , Ccmpun!cs \c! !O5G
3>
0&9%A+:
- Tn!rcduc!!cn !c Tnccmc - Tn!rcduc!!cn !c Tnccmc
!ux !ux . .
(A) shares in the compan" (not eing shares entitled to a fixed rate of
di!idend whether with or without a further right to participate in profits) were,
as on the last da" of the rele!ant pre!ious "ear, listed in a recognised stoc4
exchange in *ndia in accordance with the -ecurities 0ontracts ((egulation) Act,
BA28 (4D of BA28), and an" rules made thereunder @
(;) shares in the compan" (not eing shares entitled to a fixed rate of
di!idend whether with or without a further right to participate in profits)
carr"ing not less than fift" per cent of the !oting power ha!e een allotted
unconditionall" to, or acGuired unconditionall" ", and were throughout the
rele!ant pre!ious "ear eneficiall" held "
(c) an" compan" to which this clause applies or an" susidiar" compan"
of such compan" if the whole of the share capital of such susidiar" compan"
has een held " the parent compan" or " its nominees throughout the
pre!ious "earE
Sec3 '('= Sec3 '('=(i) firm shall ha!e the (i) firm shall ha!e the
meaning assigned to it in the meaning assigned to it in the
*ndian %artnership Act, BA3D (A of *ndian %artnership Act, BA3D (A of
BA3D), and shall include a limited BA3D), and shall include a limited
liailit" partnership as defined in liailit" partnership as defined in
the Limited Liailit" %artnership the Limited Liailit" %artnership
Act, DCC? (8 of DCCA)@ Act, DCC? (8 of DCCA)@
THl THl lTMTTlD lTMTTlD lT\lTlTTY lT\lTlTTY l\RTNlRSHTl l\RTNlRSHTl , \CT, \CT ?OO8 ?OO8
Nu!urc c !!m!!cd !!ub!!!!v pur!ncrsh!p
. ( ) Scc 8 ! \ !!m!!cd !!ub!!!!v pur!ncrsh!p !s u bcdv ccrpcru!c
crmcd und !nccrpcru!cd undcr !h!s \c! und !s u !cu! cn!!!v
. scpuru!c rcm !hu! c !!s pur!ncrs
( ) ? : \ !!m!!cd !!ub!!!!v pur!ncrsh!p shu!! huvc pcrpc!uu! succcss!cn
\nv chunc !n !hc pur!ncrs c u !!m!!cd !!ub!!!!v pur!ncrsh!p shu!!
, nc! ucc! !hc cx!s!cncc r!h!s cr !!ub!!!!!cs c !hc !!m!!cd
. !!ub!!!!v pur!ncrsh!p
. Scc 4 , Suvc us c!hcr!sc prcv!dcd !hc prcv!s!cns c !hc Tnd!un
, lur!ncrsh!p \c! !O8? shu!! nc! upp!v !c u !!m!!cd !!ub!!!!v
. pur!ncrsh!p
4B
)*(9
- Tn!rcduc!!cn !c Tnccmc - Tn!rcduc!!cn !c Tnccmc
!ux !ux . .
Sec3 '('= Sec3 '('=(i) firm shall ha!e the meaning (i) firm shall ha!e the meaning
assigned to it in the *ndian %artnership Act, assigned to it in the *ndian %artnership Act,
BA3D (A of BA3D), and shall include a limited BA3D (A of BA3D), and shall include a limited
liailit" partnership as defined in the Limited liailit" partnership as defined in the Limited
Liailit" %artnership Act, DCC? (8 of DCCA)@ Liailit" %artnership Act, DCC? (8 of DCCA)@
THl THl lTMTTlD lTMTTlD lT\lTlTTY lT\lTlTTY l\RTNlRSHTl l\RTNlRSHTl , \CT, \CT ?OO8 ?OO8
& Dc!n!!!cn c lcdv Ccrpcru!c l!m!!cd l!ub!!!!v lur!ncrsh!p
. ( ) ! ! Scc ? d bcdv ccrpcru!c mcuns u ccmpunv us dc!ncd !n scc!!cn 8
, c !hc Ccmpun!cs \c! !O5G und !nc!udcs-
( ) ! u !!m!!cd !!ub!!!!v pur!ncrsh!p " rc!s!crcd undcr !h!s \c!
( ) " !! u !!m!!cd !!ub!!!!v pur!ncrsh!p !nccrpcru!cd cu!s!dc Tnd!u und
( ) , !!! u ccmpunv !nccrpcru!cd cu!s!dc Tnd!u
- bu! dccs nc! !nc!udc
( ) " ! ccrpcru!!cn sc!c
( ) - !! u cc cpcru!!vc scc!c!v rc!s!crcd undcr unv !u cr !hc !!mc bc!n !n
" crcc _und
( ) ( !!! unv c!hcr bcdv ccrpcru!c nc! bc!n u ccmpunv us dc!ncd !n scc!!cn 8
, c !hc Ccmpun!cs \c! !O5G cr u !!m!!cd !!ub!!!!v pur!ncrsh!p us dc!ncd !n
), , !h!s \c! h!ch !hc Ccn!ru! Gcvcrnmcn! muv bv nc!!!cu!!cn !n !hc O!c!u!
, Guzc!!c spcc!v !n !h!s bchu!
( ) ! ! n !!m!!cd !!ub!!!!v pur!ncrsh!p mcuns u pur!ncrsh!p crmcd und
rc!s!crcd
undcr !h!s \c!
. ( ) Scc 8 ! \ !!m!!cd !!ub!!!!v pur!ncrsh!p !s u bcdv ccrpcru!c crmcd
und !nccrpcru!cd undcr !h!s \c! und !s u !cu! cn!!!v scpuru!c rcm !hu! c
. !!s pur!ncrs
4D
)*(9
- Tn!rcduc!!cn !c Tnccmc - Tn!rcduc!!cn !c Tnccmc
!ux !ux . .
Characteristics
- D essential features7 (i) agreement to share
the profit or loss, & (ii) each partner acting
as the agent of another ..[1962] 46
I! 492 ("o#)
- &wning of propert" not reGuiredEEE [197$] 91
I! 412, 41% (&'d)
- 9ore than one firm with same partners
distinct identities . [196(]70 I! (4$
-
: Churuc!cr!s!!cs
- ..[ ] ( ) Ccmmcn purpcsc cr ccmmcn cuusc mus! cx!s! !O88 !48 TTl !G \!!
- ..[ ] ( ) l!cmcn!s c vc!!!!cn csscn!!u! !O8 88 TTR 48? SC
- ( . .. ) \cc!dcn!u! cr !cu! ccmb!nu!!cn !s nc! lOT c Hc!rs rccc!v!n !nhcr!!uncc
[ ] ( .) !O8 !G4 TTR 8G Mud
- ..[ ] ( ) l!cmcn! c ]c!n! vcn!urc mus! cx!s! !OGG 5O TTR ?8 SC
- ..[ ] ( .) lcdv cn!rus!cd !c rccc!vc !nccmc und d!spcsc !! !s lOT !O84 !45 TTR 8?8 |ur
- .[ ] ( .) Ccn!!nucus bus!ncss vcn!urc nc! csscn!!u! !OO ?? TTR 5!? Guu
Ccmpun
v
l!r
m
- \Ol !s nc! d!s!!nc! und scpuru!c rcm lOT lOT ccns!s!s c nu!uru! pcrscns cn!v
. . lOT muv !ukc !n nu!uru! us c!! us ur!!!c!u! pcrscns & . . [ ] Mccru Cc vs CTT !OO
( ) ??4 TTR G85 SC
42
A&% 1 ;&*
- Tn!rcduc!!cn !c Tnccmc - Tn!rcduc!!cn !c Tnccmc
!ux !ux . .
INSTANCES OF AOP
)irms attempted to e formed, ut not a firm due to some
in!alidit" P (BA8?) 8>*$( BC8 (-0)
9emers of erstwhile /.) continuing to run a !enture after
partition of /.) P (BA4C) ? *$( BB4 (-ind)
/eirs #ointl" running inherited usiness (not /.)) EEE (BA82)
22 *$( 8AD (9adE)
9ore than one 0ompanies #ointl" running a #oint !enture P
(BA8?) 8> *$( >>B (0al)
D persons purchasing a land in #oint names and running a
cinema on it P (BA?D)B3? *$( ?CB (All)
'rstwhile partners of a dissol!ed firm with a common
enterprise P (BA?2) B2D *$( 2>8 (9ad)
6oint acti!it" of two persons in smuggling P (BA?2) B23 *$(
38C (9ad)
%artners of a firm #ointl" running an enterprise other than that
stated in their partnership deed P (BAA4) >8 $axman BDA
(0al)
48
L&0AL A.$/&(*$:
- Tn!rcduc!!cn !c Tnccmc - Tn!rcduc!!cn !c Tnccmc
!ux !ux . .
(eference usuall" to an
aggregate of propert"
and income arising to
an identit" not co!ered
under other clauses
-
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c bc!n !uxcd !hrcuh !!s shcbu!!s hc urc cn!rus!cd !!h !hc
pcsscss!cn und !hc munucmcn! c !hc prcpcr!v
.. . ( ( ) Jccnru Nu!h Nuskur v CTT !OGO 4 TTR 88 SC
4?
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!c!u! !nccmc c unv c!hcr pcrscn !n rcspcc! c h!ch hc !s
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, cr bccrc !hc duc du!c urn!sh u rc!urn c h!s !nccmc cr !hc
!nccmc c such c!hcr pcrscn dur!n !hc prcv!cus vcur, !n !hc
prcscr!bcd crm und vcr!!cd !n !hc prcscr!bcd munncr und
. sc!!!n cr!h such c!hcr pur!!cu!urs us muv bc prcscr!bcd
- Ru!c !? Rc!urn c !nccmc
und Rc!urn c lr!nc
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, ( ), !!h!n !hc mcun!n c !hc Chur!crcd \cccun!un!s \c! !O4O 88 c !O4O und
!nc!udcs, , !n rc!u!!cn !c unv S!u!c unv pcrscn hc bv v!r!uc c !hc prcv!s!cns
- ( ) , ( ), c sub scc!!cn ? c scc!!cn ??G c !hc Ccmpun!cs \c! !O5G ! c !O5G !s
cn!!!!cd !c bc uppc!n!cd !c uc! us un uud!!cr c ccmpun!cs rc!s!crcd !n !hu!
. S!u!c
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the .nion territor" of Dadra and +agar /a!eli, ,oa, Daman
and Diu, or %ondicherr", attended efore an income-tax
authorit" in the said territor" on ehalf of an" assessee
otherwise than in the capacit" of an emplo"ee or relati!e of
that assessee@ orO
83
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C%A!TER XI#
C%A!TER XI#
ASSESSMENT
ASSESSMENT
!ROCED"RE
!ROCED"RE
Ru!c !? !c !5 Ru!c !? !c !5
FORMS
NOTIFICATIONS
CIRCULARS
CASE LAWS
>>
('$.(+ &) *+0&9'
() eing a person other than a compan" or a firm, i) his total inco0e or t*e
total inco0e o) any ot*er -er.on in re.-ect o) +*ic* *e
i. a..e..a1le under t*i. Act durin5 t*e -re,iou. year exceeded
the maximum amount which is not chargeale to income-tax, shall, on or
efore the due date, )urni.* a return o) *i. inco0e or the income of such
other person during the pre!ious "ear, in the -re.cri1ed )or0 and ,eri)ied
in t*e -re.cri1ed 0anner and .ettin5 )ort* .uc* ot*er -articular. a.
0ay 1e -re.cri1ed 7
\sscssmcn! lrcccdurc \sscssmcn! lrcccdurc
. .
( ss ss m ns p rson # om n t x
or n ot r sum o mon s p l un r
t s t n n lu s
( v r p rson # o s m to n
ss ss un r n prov s on o t s t
, - ./ 0 0 ,1 2 0
0 0 - - 2, , /
Sec !" # RE$RESENTATIVE ASSESSEE
Sec !3 # A%ENT
Sec !& # E'E(UTOR
Sec )" # SU((ESSOR
( ) - u \cn! c u ncn rcs!dcn!
( ) / b Guurd!un Munucr c
/ / m!ncr !unu!!c !d!c!
( ) / c Ccur! c urds
/ \dm!n!s!ru!cr Gcncru!
Trus!cc uppc!n!cd bv ccur!
( ) ( d Trus!cc !rus! !!h
) !ns!rumcn!
( ) ( ) c Trus!cc cru! !rus!
?D
('$.(+ &) *+0&9'
() eing a person other than a compan" or a firm, i) his total inco0e or the total
income of an" other person in respect of which he is assessale under this Act
durin5 t*e -re,iou. year exceeded the maximum amount which is not
chargeale to income-tax, shall, on or efore the due date, )urni.*
a return o) *i. inco0e or the income of such other person during the
pre!ious "ear, in the -re.cri1ed )or0 and ,eri)ied in t*e -re.cri1ed
0anner and .ettin5 )ort* .uc* ot*er -articular. a. 0ay 1e -re.cri1ed
7
\sscssmcn! lrcccdurc \sscssmcn! lrcccdurc
. .
xpl n t on n t s su s t on u t
m ns
( # r t ss ss s ( omp n or
( p rson (ot r t n omp n # os
ounts r r 3u r to u t
un r t s t or un r n ot r l #
or t t m n n or or (
#or n p rtn r o rm # os ounts
r r 3u r to u t un r t s
t or un r n ot r l # or t t m
n n or t t o
pt m r o t ss ssm nt r
(substituted by Finance Act 2008, !e!"! #!$!2008%
(b) **+
( n t s o n ot r ss ss t
st o Jul o t ss ssm nt r
?3
('$.(+ &) *+0&9'
\sscssmcn! lrcccdurc \sscssmcn! lrcccdurc
. .
Sec 3, Sec 3,
Scc !8O Scc !8O
( ) ! ( ) !
" " "hc shcu!d !!c hcn hc
- lRO\TSO- lRO\TSO
! !
- lRO\TSO- lRO\TSO
? ?
- lRO\TSO- lRO\TSO
8 8
- lRO\TSO- lRO\TSO
4 4
One by six scheme
...u t! "# 2$$%&$'
Every c!. ( firm t! fi)e return
*i)in+ !f return re,d- i" TOTAL INCOME .ith!ut
+ivin+ effect t! Exemti!ns u(s 1$"- 1$/- 1$/"
!r deducti!n u( 0ha 12 " e&ceeds a'(unt
n(t c)a*+eab,e t( ta&
$rovided also that every person% being an individual or a &indu undivided family or
an association of persons or a body of individuals% 'hether i-corpor./ed or -o/% or
an artificial (uridical person% if 0is /o/.l i-come or the total income of any other
person in respect of 'hich he is assessable under this Act during the previous year%
1i/0ou/ 2i3i-2 effec/ /o /0e pro3isio-s of sec/io- "A or sec/io- "4 or
sec/io- "4A or (0.p/er VI5A e6ceeded /0e m.6imum .mou-/ 10ic0 is -o/
c0.r2e.ble /o i-come5/.6% shall% on or before the due date% fur-is0 . re/ur- of
his income or the income of such other person during the previous year% in the
prescribed form and verified in the prescribed manner and setting forth such other
particulars as may be prescribed.
?4
('$.(+ &) *+0&9'
\sscssmcn! lrcccdurc \sscssmcn! lrcccdurc
. .
(!\ (!\
) )
*i)in+ !f return by sa)aried em)!yees thr!u+h em)!yer
Schcmc cr bu!k
!!!n c rc!urns
bv su!ur!cd
, cmp!cvccs ?OO?
Schcmc c !!!n
c rc!urns bv
su!ur!cd cmp!cvccs
, !hrcuh cmp!cvcr
?OO4
(!l (!l
) )
E 3 fi)in+ !f return
l!cc!rcn!c urn!sh!n c rc!urns c
!nccmc schcmc ?OO
( ) 8 ( ) 8
Return t! be fi)ed f!r carryin+ f!r.ard a LO44 under 56r!fits
7 +ains fr!m business 7 r!fessi!n8 !r 5caita) +ains8
Sec &"+ )ot'ithstanding anything contained in this *hapter% -o loss 10ic0 0.s
-o/ bee- de/ermi-ed i- pursu.-ce of . re/ur- filed i- .ccord.-ce 1i/0 /0e
pro3isio-s of sub5sec/io- (3) of sec/io- 3,7 s0.ll be c.rried for1.rd and set
off under sub"section +#, of section -. or sub"section +., of section -/ or sub"
section +#, or sub"section +/, of section -0 or sub"section +/, of section -0A.
Loss u-der 89ouse proper/:; <<
u=s )4 <<
?2
('$.(+ &) *+0&9'
\sscssmcn! lrcccdurc \sscssmcn! lrcccdurc
. .
(!\ (!\
) )
*i)in+ !f return by sa)aried em)!yees thr!u+h em)!yer
Schcmc cr bu!k
!!!n c rc!urns
bv su!ur!cd
, cmp!cvccs ?OO?
Schcmc c !!!n
c rc!urns bv
su!ur!cd cmp!cvccs
, !hrcuh cmp!cvcr
?OO4
(!l (!l
) )
E 3 fi)in+ !f return
l!cc!rcn!c urn!sh!n c rc!urns c
!nccmc schcmc ?OO
( ) 8 ( ) 8
Return t! be fi)ed f!r carryin+ f!r.ard a LO44 under 56r!fits
7 +ains fr!m business 7 r!fessi!n8 !r 5caita) +ains8
( ) 4 ( ) 4 -ELATE. RETURN
U t! !ne year fr!m the end !f re)evant "# !r assessment
C / F LOSS RETURN
(4\ (4\
) )
C0ARITA-LE TRUST
*i)in+ !f return re,d- i" TOTAL INCOME .ith!ut +ivin+
effect t! 4ec 11 7 12 e&ceeds 'a& a'(unt n(t ta&ab,e
(4l (4l
) )
1OLITICAL 1ART2
*i)in+ !f return re,d- i" TOTAL INCOME .ith!ut +ivin+
effect t! 4ec 19" e&ceeds 'a& a'(unt n(t ta&ab,e
?8
('$.(+ &) *+0&9'
\sscssmcn! lrcccdurc \sscssmcn! lrcccdurc
. .
(4C (4C
) )
(4D (4D
) )
( ) 5 ( ) 5
( ) G ( ) G
In"(*'ati(n t(
be "u*nis)ed
inc!me exemt- assets- ban: acc!unt- credit card-
exenditure- !ther !ut+!in+s as may be 6RE40R2/E;
RE3ISE. RETURN
(G\ (G\
) )
Audit *e4(*t etc
"udit return- rincia) )ace- branches- artners- members etc
( ) O ( ) O .EFECTI3E RETURN
2f "O c!nsiders return defective 3 !!rtunity f!r rectify
.ithin 1% days ( time a))!.ed by "O
INSTITUTIONS U/S #0
*!r certain instituti!ns ( ass!ciati!ns(trade uni!ns & *i)in+ !f
return re,d- i" TOTAL INCOME .ith!ut +ivin+ effect t!
c)ause 21 ( 22/( 29" ( 29/ ( 290 !f 4ec 1$ e&ceeds 'a&
a'(unt n(t ta&ab,e
UNI3ERSIT2
COLLE5E
Every University- c!))e+e !r educati!na) institute referred in c)ause
(ii) !r (iii) !f 4ec 9% (1) n!t !ther.ise re,uired t! fi)e return 3 RE6.!
On disc!very !f !missi!n ( .r!n+ statement 3 u t! !ne
year fr!m the end !f re)evant "# !r assessment
?>
('$.(+ &) *+0&9'
Sec (=> (>) Where the Assessing &fficer considers that the
return of income furnished " the assessee i. de)ecti,e, he
ma" inti0ate the defect to the assessee and gi!e him an
opportunit" to rectif" the defect within a period of )i)teen
day. )ro0 t*e date o) .uc* inti0ation or within such
further period which, on an application made in this ehalf,
the A..e..in5 O))icer 0ay, in *i. di.cretion, allo+@
%ro!ided that where the assessee rectifies the defect after the
expir" of the said period of fifteen da"s or the further period
allowed, ut efore the assessment is made, the Assessing
&fficer ma" condone the dela" and treat the return as a !alid
returnE
\sscssmcn! lrcccdurc \sscssmcn! lrcccdurc
. .
??
('$.(+ &) *+0&9'
(i) in a case where the amount of ta8, which would ha!e een e,aded if
the failure had not een disco!ered, e8ceed. one *undred
t*ou.and ru-ee., +it* ri5orou. i0-ri.on0ent )or a ter0 +*ic*
.*all not 1e le.. t*an .i8 0ont*. 1ut +*ic* 0ay e8tend to
.e,en year. and +it* )ine@
(ii) in any ot*er ca.e, with i0-ri.on0ent for a term which shall not 1e
le.. t*an t*ree 0ont*. 1ut +*ic* 0ay e8tend to t*ree year.
and +it* )ine7
(i) for an" assessment "ear commencing prior to the Bst da" of April, BA>2@ or
(ii) for an" assessment "ear commencing on or a)ter t*e (.t day o)
A-ril (>4B, i)
(() $he $oard ma" ma4e rule. pro!iding for a cla.. or cla..e.
o) -er.on. who ma" not 1e reKuired to )urni.*
docu0ent., .tate0ent., recei-t., certi)icate., re-ort. o)
audit or any ot*er docu0ent., which are otherwise under
an" other pro!isions of this Act, except section B3AD, reKuired
to 1e )urni.*ed, alon5 +it* t*e return ut on demand to e ut on demand to e
produced efore the Assessing &fficer produced efore the Assessing &fficerE
+o
4 0an unasored depreciation e carried forward without filing a
return :
2o n onl r v s t r # s n
om ss on or rror n t or n l r turn
n t s m # s due to a onafide inad!ertence or mista4e
on the part of the assessee PPPPPPPPPPPPPP -unanda (am
De4a !s 0*$ (BAA4) DBC *$( A??, AAC (,auh)
4 0an assessee file a re!ised return in case where his original return was
ased on his own oo4s of accounts which he claims are correct :
BC4
('$.(+ &) *+0&9'
\sscssmcn! lrcccdurc \sscssmcn! lrcccdurc
. .
4 0an assessee file a return of income after assessment is completed :
BC2
('$.(+ &) *+0&9'
\sscssmcn! lrcccdurc \sscssmcn! lrcccdurc
. .
4 A return showing u1s B3A (B) filed " an indi!idual with total income
elow taxale limit H is it a !alid return:
Sec (=>(A) (a) Where the return under su-section (B) or su-section (D)
or su-section (4) for an assessment "ear is furnished after the
specified date, or is not furnished, then whether or not the Assessing
&fficer has extended the date for furnishing the return under su-
section (B) or su-section (D), the assessee shall e liale to pa"
simple interest at fifteen per cent per annum, rec4oned from the da"
immediatel" following the specified date to the date of the furnishing
of the return or, where no return has een furnished, the date of
completion of the assessment under section B44, on the amount of the
tax pa"ale on the total income as determined on regular assessment,
as reduced " the ad!ance tax, if an", paid, and an" tax deducted at
source 7 %ro!ided that the Assessing &fficer ma", in such cases and
under such circumstances as ma" e prescried, reduce or wai!e the
interest pa"ale " an" assessee under this su-sectionE
PPPPPPPPPPPPPPPPPPP
%EAE+E
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$he 0entral ,o!tE " noti)ication no3 ((9?A, dated '>3A3'666 has
notified the following class or classes of persons who shall appl" to
the AE&E for allotment of %A+
E8-orter. and I0-orter. as defined in section D(DC) and section
D(D8) of the 0ustoms Act, BA8B, who are reGuired to otain an
importer-exporter code under section > of the )oreign $rade
(De!elopment and (egulation)Act, BAADE
A..e..ee. as defined in rule D(3) of 0entral 'xcise (ules, BA44E
%ersons who issue in!oices under rule 2>A' iEeE trader., etc,
reGuiring registration under 0entral 'xcise (ules, BA44E
%ersons who are a..e..ee. under ser!ice taxE
$he ao!e persons shall appl" for allotment of %A+ +it*in (B day. o)
t*e date o) -u1lication o) t*e noti)icationin the &fficial ,a3etteE
/owe!er, persons who ma" fall in the ao!e categor", after the date
of the ao!e notification, shall appl" for allotment of %A+7
(a) in case of (*) ao!e, 1e)ore 0a@in5 an i0-ort or e8-ort@
() in case of (ii) and (iii) ao!e, 1e)ore 0a@in5 a0 a--lication )or
re5i.tration under central e8ci.e@
(c) in case of (i!) ao!e, 1e)ore 0a@in5 an a--lication )or
re5i.tration under .er,ice ta8@
%EAE+E
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$he 0entral ,o!tE " noti)ication no3 =BBO'66(, dated ((/('/
'66( has further notified the following class or classes of
persons7
%EAE+E
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Sec (=>A3 (=) Any -er.on, not falling under su-section (B)
or su-section (D), ma" appl" to the Assessing &fficer for the
allotment of a permanent account numer and, thereupon,
the Assessing &fficer shall allot a permanent account numer
to such person forthwithE
%EAE+E
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!AN
(B$) Where an" sum or income or amount has een paid after
deducting tax under 0hapter <=**;, e!er" person deducting tax
under that 0hapter shall Guote the permanent account numer
of the person to whom such sum or income or amount has
een paid " him
%EAE+E
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%EAE+E
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%EAE+E
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Sec (=>A3 (A) T*e $oard 0ay 0a@e rule. pro!iding for
(e) t*e )or0 and t*e 0anner in +*ic* t*e -er.on +*o *a.
not 1een allotted a !er0anent Account Nu01er or who
does not ha!e ,eneral *ndex (egister +umer shall 0a@e *i.
declaration@
CONSEQUENCES OF FAIU!E TO CO"P# $ITH SEC %&' A CONSEQUENCES OF FAIU!E TO CO"P# $ITH SEC %&' A
Penalt(
(') '!er" Ta8 Return !re-arer shall a..i.t t*e -er.on. furnishing
the return of income in such 0anner a. 0ay 1e .-eci)ied in t*e
Sc*e0e framed under this section and a))i8 *i. .i5nature on
.uc* returnE
Sec (=>$3 (9) $he Sc*e0e framed " the ;oard under this section
0ay -ro,ide )or the following, namel"7
(') the 0anner in +*ic* and t*e -eriod )or +*ic* t*e Ta8
Return !re-arer. .*all 1e aut*ori.ed under su-section (3)@
(B) $he Sc*e0e framed " the ;oard under this section .*all 1e laid, as
soon as ma" e after it is framed, 1e)ore eac* %ou.e o) !arlia0ent,
+*ile it i. in .e..ion, )or a total -eriod o) t*irty day. which ma"
e comprised in one session or in two or more successi!e sessions, and
if, efore the expir" of the session immediatel" following the session or
the successi!e sessions aforesaid, oth /ouses agree in ma4ing an"
modification in the -cheme or oth /ouses agree that the -cheme
should not e framed, the -cheme shall thereafter ha!e effect onl" in
such modified form or e of no effect, as the case ma" e@ so, howe!er,
that an" such modification or annulment shall e without pre#udice to
the !alidit" of an"thing pre!iousl" done under that -chemeE
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Sec (96A3 (() F*ere any ta8 i. -aya1le on t*e 1a.i. o) any
return reKuired to 1e )urni.*ed under section BB2WD or
section BB2W/ or section B3A or section B4D or section B4? or
section B23A or, as the case ma" e, section B2?;0, a)ter
ta@in5 into account,
(*) an" tax credit claimed to e set off in accordance with the
pro!isions of .ection ((B7AA,
-'L) A--'--9'+$
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953-'n'tion. )or the purposes of this su-section, assessed tax assessed tax
means the tax on the total income as declared in the return as
reduced " the amount of,
(ii) an" relie) of tax or deduction of tax claimed under .ection >6
or .ection >( on account of tax paid in a countr" outside *ndia@
(iii) an" relie) of tax claimed under .ection >6A on account of tax
paid in an" specified territor" outside *ndia referred to in that section@
and
(i*) an" ta8 credit claimed to e set off in accordance with the
pro!isions of .ection ((B7AAE
Sec (96A (=) I) any a..e..ee )ail. to -ay t*e +*ole or any
-art o) .uc* ta8 or intere.t or oth in accordance with the
pro!isions of su-section (B), *e .*all, without pre#udice to an"
other conseGuences which he ma" incur, 1e dee0ed to 1e an
a..e..ee in de)ault in respect of the tax or interest or oth
remaining unpaid, and all the pro!isions of this Act shall appl"
accordingl"E
(i) where such person has not made a return within the time
allowed under su-section (B) of section B3A or efore the end
of the rele!ant assessment "ear, to )urni.* a return of his
income or the income of an" other person in respect of which
he is assessale under this Act, in the prescried form and
!erified in the prescried manner and setting forth such other
particulars as ma" e prescried, or 7
!ro,ided that where an" notice has een ser!ed under this su-section
for the purposes of this clause after the end of the rele!ant
assessment "ear commencing on or after the Bst da" of April, BAAC to
a person who has not made a return within the time allowed under
su-section (B) of section B3A or efore the end of the rele!ant
assessment "ear, an" such notice issued to him shall e deemed to
ha!e een ser!ed in accordance with the pro!isions of this su-
section,
-ec B4D
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Sec (9'E (B) )or the purpose of ma4ing an assessment under this Act,
the Assessing &fficer ma" ser!e on an" person who has made a return
under section BB2WD or section B3A or in whose case the time allowed
under su-section (B) of section B3A for furnishing the return has
expired a notice reGuiring him, on a date to e therein specified,
(i) PPPPEE
!ro,ided that
('A) *f, at an" stage of the proceedings efore him, the Assessing
&fficer, ha!ing regard to the nature and complexit"
of the accounts
of the assessee and the interests of the re!enue, is of the opinion
that it is necessar" so to do, he ma", with the -re,iou. a--ro,al
o) t*e C*ie) Co00i..ioner or Co00i..ioner, direct t*e
a..e..ee to 5et t*e account. audited 1y an accountant, as
defined in the 953-'n'tion elow su-section (D) of section D??,
no0inated 1y t*e C*ie) Co00i..ioner or Co00i..ioner in
this ehalf and to furnish a report of such audit in the prescried
form
dul" signed and !erified " such accountant and setting forth
such particulars as ma" e prescried and such other particulars as
the Assessing &fficer ma" reGuire 7
!ro,ided that the Assessing &fficer .*all not direct the assessee to
get the accounts so audited unle.. t*e a..e..ee *a. 1een 5i,en a
rea.ona1le o--ortunity o) 1ein5 *eardE
Sec (9'E (D0) '!er" report under su-section (DA) shall e furnished "
the assessee to the Assessing &fficer within such period as ma" e
specified " the Assessing &fficer 7
('D) $he e8-en.e. o), and incidental to, any audit under su-
section (DA) (including the remuneration of the accountant) shall e
deter0ined 1y t*e C*ie) Co00i..ioner or Co00i..ioner (which
determination shall e final) and -aid 1y t*e a..e..ee and in
de)ault o) .uc* -ay0ent, .*all 1e reco,era1le )ro0 t*e
a..e..ee in the manner pro!ided in 0hapter <=**-D for the reco!er" of
arrears of tax 7
!ro,ided that where an" direction for audit under su-section (DA) is
issued " the Assessing &fficer on or a)ter t*e (.t day o) 7une,
'664, the expenses of, and incidental to, such audit (including the
remuneration of the Accountant) .*all 1e deter0ined " the 0hief
0ommissioner or 0ommissioner in accordance +it* .uc*
5uideline. a. 0ay 1e -re.cri1ed and the expenses so determined
.*all 1e -aid 1y t*e Central o,ern0entE
-ec B4D
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Rule > 4
(') Where the Assessing &fficer directs for audit under su-section (DA)
of section B4D on or after the Bst da" of 6une, DCC>, the e8-en.e. o),
and incidental to, audit (includin5 t*e re0uneration o) t*e
Accountant, Kuali)ied A..i.tant., .e0i/Kuali)ied and ot*er
A..i.tant. +*o 0ay 1e en5a5ed 1y .uc* Accountant) .*all not
1e le.. t*an ru-ee. t*ree t*ou.and .e,en *undred and )i)ty
and not 0ore t*an ru-ee. .e,en t*ou.and and )i,e *undred
)or e,ery *our o) t*e -eriod as specified " the Assessing &fficer
under su-section (D0) of section B4DE
Sec (9'E (=) $he a..e..ee .*all, except where the assessment
is made under section B44, 1e 5i,en an o--ortunity o)
1ein5 *eard in re.-ect o) any 0aterial 5at*ered on t*e
1a.i. o) any inKuiry under .u1/.ection (') or any audit
under .u1/.ection ('A) and -ro-o.ed to 1e utili.ed )or
t*e -ur-o.e. o) t*e a..e..0entE
-ec B4D
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-ec B4D
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B3?
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(! (!
) )
2f a ers!n re,uired t! fi)e a return had fai)ed t!
fi)e it bef!re the end !f re)evant "#
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"cc!unts O?L# ut! 9 years bef!re
re)evant 6#
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Tc prcducc
/ \CCO|NTS
DOC|MlNTS
4tatement !f "44EA4 7 L2"/2L2A2E4 !n)y
.ith ri!r ermissi!n !f D02A
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ri!r ermissi!n !f 02A(002A audit!r n!minated by 002A
On)y after +ivin+ an !!rtunity t! be heard t! assessee
Exense b!rne by 0entra) >!vt after 1.'.$E
Ru)e 1B/ Rs 9E%$ t! E%$$ (h!ur
6eri!d +iven(extended by "O ut! 1F$ days
(8 (8
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OllORT|NTTY Ol llTNG Hl\RD
(4 (4
) )
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4 0an inGuir" u1s B4D done after assessment:
2o t pr ss ssm nt n3u r
Amal Sr ,hata4 !E *$& (BA>B) >A *$( 42D (0al)
4 0an a reference to t eh !aluation cell u1s 22A e made u1s B4D) :
+oE Appro!al " the 0*$ must e specific and gi!en after
considering material on the asis of which A& has proposed the special
auditPPP %eerless ,en )in & *n! 0o Ltd =E 0*$ (BAAA) D38 *$( 8>B(0al)
4 *s Guantum of turno!er or receipts rele!ant for special audit :
2o , t s n rr l v nt
ons r t on %eerless ,en )in &
*n! 0o Ltd =E 0*$ (BAAA) D38 *$( 8>B(0al)
4 0an a special audit e ordered on the ground that the stoc4s could not
e reconciled " the auditors :
1 rov so u s (
ns rt n t #
t r t u m nt n s o "!
Fin Cor- #3 7CIT ('66B) (94 Ta80an '( (All) w+ic+ +e-d t+'t suc+ 'n
o33ortunit0 w's not re:uired 's 3er t+e st'tuteE
4 0an the A& issue a notice u1s B4D (B) calling for a return of income,
after the due date pro!ided in -ec B3A and efore the end of the
rele!ant assessment "ear:
2o , t s not nou to m t
ounts ompl x or ust sp l
u t ;a#rang $extiles =E 0*$ (DCC4) 3
-&$ BB2 (6odh)
4 0an the A& ma4e a reference to an auditor to prepare oo4s of
accounts on the asis of records sei3ed during a search :
+o
4 0an a est #udgment u1s B44 e completed in a case of non-filing of
return, without issuing a notice u1s B4D (B) for filing of a return u1s
B4D (B) (i) :
(=) &n receipt of the report from the =aluation &fficer, the
A..e..in5 O))icer 0ay, a)ter 5i,in5 t*e a..e..ee an
o--ortunity o) 1ein5 *eard, ta@e into account .uc*
re-ort in 0a@in5 .uc* a..e..0ent or rea..e..0ent7
Sec (9=3 (() Where a return has een made under section B3A,
or in response to a notice under su-section (B) of section B4D,
such return shall e -roce..ed in the following manner,
namel"7
(a) the total income or loss shall e computed after ma4ing the
following adQu.t0ent., namel"7
(c) the .u0 -aya1le 1y, or t*e a0ount o) re)und due to,
t*e a..e..ee shall e deter0ined a)ter adQu.t0ent o) the
tax and interest, if an", computed under clause () " an" tax
deducted at source, an" tax collected at source, an" ad!ance
tax paid, an" relief allowale under an agreement under
section AC or section ACA, or an" relief allowale under section
AB, an" reate allowale under %art A of 0hapter =***, an" tax
paid on self-assessment and an" amount paid otherwise " wa"
of tax or interest@
-ec B43
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Sec (9=3 (() Where a return has een made under section B3A,
or in response to a notice under su-section (B) of section B4D,
such return shall e -roce..edin the following manner,
namel"7
-ec B43
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Sec (9=3 (() Where a return has een made under section B3A, or in response
to a notice under su-section (B) of section B4D, such return shall e
-roce..edin the following manner, namel"7
-ec B43
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Sec (9=3 (') Where a return has een furnished under section B3A,
or in response to a notice under su-section (B) of section B4D, the
Assessing &fficer shall,
%ro!idedPPPPPE
(a) an" ta8 or intere.t -aid " the assessee under su-section
(B) shall e deemed to ha!e een -aid to+ard. .uc* re5ular
a..e..0ent @
, ss ss s oul n orm n
v n t r t rou l tt r or
t rou t l p on # r v r poss l
x pt t t s oul v
pr n to t s s # r l l
to l mor r v nu t s oul not
o s ss # t u t ur s s
rt n u m nts to ompl t n n r
n s m r t # ll u t # n
# ompl t s t os s s n not
t xt nt to # s oll t s
u t st m t
r t ss ss s lr t n
on ournm nt ut s r s not r
ournm nt t ss ss s oul m t
r 3u st or ournm nt # ll n v n so
s to n l m n s o r us l to
pr p r to pro on t ppo nt
, x r s s 3u s u l po# rs
n n o n o t must t n r
m nn r n not n p rt s n m nn r
lt ou t s t r ut to nsur t t
no t x # s l t m t l u r m ns
un ov r t must lso not t n
m nn r t t m t n t t t t
s l s r # nst t ss ss
4 )or a return of income for A: DCC2-C8, filed on 3BE3EC> H if the law was
amended wEeEfE BE4EC8, will the amended pro!isions appl" :
2o ss ssm nt s on n nv l
r turn s nv l l l to
n ll
B8>
-ec B43
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. .
4 Does the '!idence Act appl" in case of assessment :
, ou t prov s ons o t
v n t o not ppl to ss ssm nt
pro n # n t ut or t s r
ll upon to ons r t ts o
o um nt t n r l prov s ons
m o n o v n
t # ll ppl
n s o t r umst nt l
v n t tot l t o r umst n s
s ot to t n nto ount n t
om n t o ll t r umst n s
s t rm n t v o t 3u st on s to
# t r or not p rt ul r t s
prov
4 0an the A& re#ect the documents filed " the assessee as e!idence H
on what ground :
:esE $he A& can loo4 into the genuineness & !alidit" of
documents filed " assessee and re#ect them if not found to e not
genuine or !alid .IE @. C A'0'r'#'n (19(7) 16( I! 7%7 (&'d)
B>B
-ec B43
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4 Assessee o#ected to the use of some material " the A& on the ground
that it was an e!idence not admissile in the court of law and the
A& has powers of a ci!il court s t o t on
v l:
ro n s un r t , t r not
u l pro n s s 2 , tt r
# t or oun t n l rul s out
v n ont n n t n n
v n t n s nt tl to t
on m t r l # m not pt l
s v n n ourt o l #
, s o s not m n t t # n t
t x n ut or t s r s rous o
nvo n t prov s ons o v n t
t r pr v nt rom o n so
, ss ssm nt o n om s m on t
s s o n r n on v n # n
r m n l or v l ust m
nsu nt
B>D
-ec B43
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. .
4 &n whom lies the urden of proof in the assessment proceedings T
4 )or estalishing that statement or information filed in return is not
correct :
n n st l s t s s o# n
t t (
information gi!en " assessee in return is not consistent with
other information, documents, accounts, explanations,
e!idence pro!ided " him
*nformation gi!en " assessee is false as estalished from other
material on record which assessee was confronted with, ut
could not explain satisfactoril"
)ailure of the assessee to pro!ide an" documentar" support of
claims made " him & failure to offer an" acceptale
explanation for such a failure
*nformation or explanation pro!ided " assessee pro!es that his
returned income is not computed as per law
0ircumstantial e!idence on record, after ta4ing explanation or
o#ections of assessee into consideration estalishes that his
returned income is not correct
$he income returned is not in conformit" with the oo4s of
accounts, and no acceptale explanation is offered " the
assessee
$he oo4s of accounts are re#ected after ta4ing into
consideration whate!er the assesee has to offer as explanation
or e!idence
;" estalishing that the documents sumitted " assessee are
not genuine or are fraudulent in nature, and no satisfactor"
explanation is offered " assessee
;" showing that the certain rele!ant facts were not disclosed "
the assessee nor an" explanation is offered in this regard
B>3
-ec B43
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. .
4 &n whom lies the urden of proof in the assessment proceedings T
4 )or estalishing that statement or information filed in return is
correct :
n ss ss n st l s t s
(
%ro!iding details, documents, information reGuired " A&
0onfirmation of certain transactions from third parties
'xplanations aout missing information 1 documents
-howing lin4 etween income returned and oo4s of acounts
n n st l s t s
(
-%'AS*+, &(D'( detailing the reasons , iEeEE 9aterial and
logic ecause of which the explanation sumitted " the
assessee is not acceptale
n n st l s t s
(
-%'AS*+, &(D'( detailing the reasons , iEeEE 9aterial and
logic ecause of which the document sumitted " the
assessee is not reliale
;" showing that the document is not genuine
;" pointing out inconsistencies in the document with other
materials or explanations sumitted " assessee, after gi!ing
the assessee an opportunit" to e heard
B>4
-ec B43
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. .
4 0an the A& ta4e into account the statement of a third part":
1 s ut onl t r v n t ss ss
n opportun t o ross x m n n t
t r p rt , ross x m n t on o
t t r p rt t ss ss s oul
r or n pt on r or n u
ons r t on must v n to n
n ons st n s r s n out o su ross
x m n t on
4 0an the A& rel" on e!idence that has ne!er een rought to the notice
of the assessee:
4 0an the A& ma4e an addition on the ground that the assessee has
een e!ading taxes in earlier "ears:
Ti0e li0it )or co0-letion o) a..e..0ent. and rea..e..0ent.3 Ti0e li0it )or co0-letion o) a..e..0ent. and rea..e..0ent.3
!ro,ided further that in case the a..e..0ent year in which the income
was first assessale is the assessment "ear co00encin5 on t*e (.t day
o) A-ril, '66B or any .u1.eKuent a..e..0ent year and during the
course of the proceeding for the assessment of total income, a re)erence
under .u1/.ection (() o) .ection >'CA (i) +a. 0ade 1e)ore t*e (.t
day o) 7une, '664 1ut an order under .u1/.ection (=) o) t*at
.ection *a. not 1een 0ade 1e)ore .uc* date2 or (ii) i. 0ade on or
a)ter t*e (.t day o) 7une, '664, the pro!isions of clause (a) shall,
not+it*.tandin5 anyt*in5 contained in t*e )ir.t -ro,i.o, ha!e effect
a. i) )or t*e +ord. t+o year., t*e +ord. t*irty/t*ree 0ont*. had
een sustitutedE
-ec B43
\sscssmcn! lrcccdurc \sscssmcn! lrcccdurc
. .
REFEREN(E TO TRANSFER $RI(IN% OFFI(ER
B>8
-ec B43
\sscssmcn! lrcccdurc \sscssmcn! lrcccdurc
. .
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T
T
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T
T
AY 2009-10
FY 2010-11
FY 2010-11
/ ( ) ( )/ ( ) Nc!!cc u s !4? ! !! !!!
-ec B44
\sscssmcn! lrcccdurc \sscssmcn! lrcccdurc
. .
(b) )ail. to co0-ly +it* )ail. to co0-ly +it* all t*e ter0. o) a notice all t*e ter0. o) a notice issued
under .u1/.ection (() o) .ection (9' or fails to compl" with a
direction issued under .u1/.ection ('A) of that section, or
(c) ha!ing made a return, )ail. to co0-ly +it* )ail. to co0-ly +it* all t*e ter0. all t*e ter0.
o) a notice o) a notice issued under .u1/.ection (') o) .ection (9=,
the Assessing &fficer, a)ter ta@in5 into account all rele,ant 0aterial
which the Assessing &fficer has gathered, shall, a)ter 5i,in5 t*e
a..e..ee an o--ortunity o) 1ein5 *eard, 0a@e t*e a..e..0ent
o) t*e total inco0e or lo.. to t*e 1e.t o) *i. Qud50ent and
deter0ine t*e .u0 -aya1le " the assessee on the asis of such
assessment 7
-ec B44
\sscssmcn! lrcccdurc \sscssmcn! lrcccdurc
. .
c!m)ies .ith ?O?E !f the ten terms !f a n!tice u(s1B2 (1)(ii)7(iii)
OR
c!m)ies .ith ?2?E !f the ten terms !f a n!tice u(s1B2 (1)(ii)7(iii)
>>>>>>>>>
B?C
-ec B44
\sscssmcn! lrcccdurc \sscssmcn! lrcccdurc
. .
K$he main contention of the assessee is that most of the oo4s which
were not produced were irrele!ant to the enGuir" and P*$&PE was in a
position to ma4e the assessment on information furnished " the
account oo4s which were actuall" produced PPconseGuentl" it could
not e said that there was an" non compliance with the terms of the
notice issued under su sec (4) of -ec DDE PPEE-u sec (4) of -ec D3
enacts that if an" person fails to compl" with all the terms of a notice fails to compl" with all the terms of a notice
issued under su section (4) of -ec DD, the *$& shall ma4e the
assessment to the est of his #udgmentE (eading these two pro!isions
of law together the onl" conclusion that can reasonal" e deduced is
that it is the reGuirement of the *$& which is to e satisfied " the
assessee under su sec (4) of sec DD and not what the assessee thin4s
the *$&, should, in the circumstances of the case, ha!e reGuiredE *n
other words, the final ariter of what is reGuired is the *$& and not the
assesseeE *f, therefore, there is an" non compliance with an" of the
terms of the notice issued under su sec (4) of -ec DD, the assessee
ma4es himself liale to e assessed under susec (4) of -ec D3E $o put
an" other construction on the clear wording of the -tatute as contained
in susec (4) of -ec DD or su sec (4) of -ec D3 would amount to
sustituting the assesses for the *$& to determine what materials are
necessar" to e produced in order to enale the *$& to arri!e at a #ust
estimate of an assesseeIsincomeE $his could ne!er ha!e een the
intention of the Legislature while enacting these pro!isionsEL
.u-sid's ;'4in 8+'nd@s. 8I, =unB'b , 6 I! $(%
B?B
-ec B44
\sscssmcn! lrcccdurc \sscssmcn! lrcccdurc
. .
4 When the assessee does not compl" with notices u1s B4D(B) & 1 or
B43(D) and there is !er" little information a!ailale what should the
A& do: -hould he go for o!er assessment to protect the interest of
re!enue : 0an o!erassessment gi!e rise to an" prolem :
ult o t# n
prot t n nt r st o r v nu
r t n un oll t l m n
s n su s ss ss # ll
tr t s v n l to l r turn
o n om n or r u s n
p ss
4 *f the A& wants to appl" comparale ratios for passing an order u1s
B44, is he reGuired to gi!e a further opportunit" to the assessee of
eing heard in this matter :
4 What are the precautions to ta4e while ma4ing order u1s B44:
Po4er o+ Po4er o+ 2oint Co--issioner to iss,e directions in certain 2oint Co--issioner to iss,e directions in certain
cases cases
(') &n receipt of the draft order, the eli5i1le a..e..ee .*all, +it*in
t*irty day. of the receipt " him of the draft order,
(?) $he Dispute (esolution %anel shall issue the directions referred to in
su-section (2), a)ter con.iderin5 the following, namel"7
(5) result of an" enGuir" made ", or caused to e made ", itE
-ec B44 0
\sscssmcn! lrcccdurc \sscssmcn! lrcccdurc
. .
(4) $he Di.-ute Re.olution !anel 0ay, efore issuing an" directions
referred to in su-section (2),
(A) $he Dispute (esolution %anel ma" con)ir0, reduce or en*ance t*e
,ariation. -ro-o.ed in t*e dra)t order so, howe!er, that it .*all
not .et a.ide any -ro-o.ed ,ariation or i..ue any direction
under .u1/.ection (B) )or )urt*er enKuiry and -a..in5 o) t*e
a..e..0ent order3
-ec B44 0
\sscssmcn! lrcccdurc \sscssmcn! lrcccdurc
. .
((=) .pon receipt of the directions issued under su-section (2), the
A..e..in5 O))icer .*all, in conformit" with the directions, co0-lete,
notwithstanding an"thing to the contrar" contained in section B23, the
a..e..0ent +it*out -ro,idin5 any )urt*er o--ortunity o) 1ein5
*eard to t*e a..e..ee, +it*in one 0ont* )ro0 t*e end o) t*e
0ont* in +*ic* .uc* direction i. recei,ed3
((9) $he $oard 0ay 0a@e rule. for the purposes of the efficient
functioning of the Dispute (esolution %anel and expeditious disposal of
the o#ections filed under su-section (D) " the eligile assesseeE
Sec (943
-ec B4>
\sscssmcn! lrcccdurc \sscssmcn! lrcccdurc
. .
Sec (943
Sec (9AD33
Sec (9>3 (B) +o notice under section B4? shall e issued for
the rele!ant assessment "ear,
(a) i) )our year. *a,e ela-.ed from the end of the rele!ant
assessment "ear, unle.. the case falls under clause (b)@
(b) i) )our year., 1ut not 0ore t*an .i8 year., *a,e
ela-.ed from the end of the rele!ant assessment "ear unle..
the inco0e c*ar5ea1le to ta8 +*ic* *a. e.ca-ed
a..e..0ent amounts to or is li4el" to amount to one la@*
ru-ee. or 0ore for that "earE
!ro,i.ion )or ca.e. +*ere a..e..0ent i. in -ur.uance o) an order on !ro,i.ion )or ca.e. +*ere a..e..0ent i. in -ur.uance o) an order on
a--eal, etc3 a--eal, etc3
-ec B2C
\sscssmcn! lrcccdurc \sscssmcn! lrcccdurc
. .
!ro,ided that, a)ter t*e e8-iry o) )our year. from the end of
the rele!ant assessment "ear, no .uc* notice shall e issued
unle.. t*e C*ie) Co00i..ioner or Co00i..ioner i.
.ati.)ied, on the reasons recorded " the Assessing &fficer
aforesaid, t*at it i. a )it ca.e for the issue of such noticeE
-ec B2B
\sscssmcn! lrcccdurc \sscssmcn! lrcccdurc
. .
-ec B2D
\sscssmcn! lrcccdurc \sscssmcn! lrcccdurc
. .
!ro,ided that where the notice under .ection (9A was ser!ed
on or after the (.t day o) A-ril, (>>> 1ut 1e)ore t*e (.t
day o) A-ril, '666, such assessment, reassessment or
recomputation ma" e made at an" time u- to t*e =(.t day
o) Marc*, '66' 7
!ro,ided also that where the notice under .ection (9A +a.
.er,ed on or a)ter the (.t day o) A-ril, '66? and and during
the course of the proceedings for the assessment or
reassessment or recomputation of total income, a re)erence
under .u1/.ection (() o) .ection >'CA (i) was made
1e)ore t*e (.t day o) 7une, '664 ut an order under .u1/
.ection (=) o) t*at .ection has not 1een 0ade 1e)ore
.uc* date@ or (ii) is 0ade on or a)ter the Bst da" of 6une,
DCC>, the pro!isions of this su-section shall, notwithstanding
an"thing contained in the second pro!iso, ha!e effect a. i) )or
t*e +ord. one year, the words t+enty/one 0ont*. had
een sustitutedE
-ec B23 (D)
\sscssmcn! lrcccdurc \sscssmcn! lrcccdurc
. .
%ro!ided that where the order under section D2C or section D24 is
recei!ed " the 0hief 0ommissioner or 0ommissioner or, as the case
ma" e, the order under section D83 or section D84 is passed " the
0hief 0ommissioner or 0ommissioner, on or after the Bst da" of April,
BAAA ut efore the Bst da" of April, DCCC, such an order of fresh
assessment ma" e made at an" time up to the 3Bst da" of 9arch,
DCCD 7
Sec (B= (=) $he pro!isions of su-sections (() , ((A), (($) and
(') .*all not a--ly to the following classes of assessments,
reassessments and recomputations which ma", su#ect to the
pro!isions of su-section (DA), e completed at an" time
B
(i) the ti0e ta@en in reo-enin5 t*e +*ole or any -art o) t*e
-roceedin5 or in gi!ing an opportunit" to the assessee to e re-
heard under the pro!iso to .ection ('>, or
(iii) the -eriod commencing from the date on which the Assessing
&fficer directs the assessee to get his account. audited under .u1/
.ection ('A) o) .ection (9' and endin5 +it* t*e la.t date on
+*ic* t*e a..e..ee i. reKuired to )urni.* a re-ort of such audit
under that su-section, or
(i!)
-ec B23
\sscssmcn! lrcccdurc \sscssmcn! lrcccdurc
. .
(i!a) the period (not exceeding sixt" da"s) commencing from the date on which
the Assessing &fficer recei!ed the declaration under su-section (B) of section
B2?A and ending with the date on which the order under su-section (3) of that
section is made " him, or
E
-ec B23
\sscssmcn! lrcccdurc \sscssmcn! lrcccdurc
. .
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Time limi/ for issue of -o/ice u=s >& c.lcul./ed from /0e e-d of /0e rele3.-/ AE
Time limi/ for comple/io- of re.ssessme-/
-i-e mo-/0s from /0e e-d of FE i- 10ic0 -o/ice u-der is >& is ser3ed
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for A(IT for A(IT
Ut! B years B&' years
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for A(IT for A(IT
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DBD
('A--'--9'+$
\sscssmcn! lrcccdurc \sscssmcn! lrcccdurc
. .
4 0an the A& lea!e certain in!estigations for a suseGuent re-
assessment :
s oul 2 , m n p m l
ss ssm nt or m n o s rv t ons n t
ours o ss ssm nt pro n s t t som
ss ss l n om t x st n o #
s n t r no#l # ll su t to
ss ssm nt su s 3u ntl u s
:esE *t can e!en though it was open for him to challenge it efore
A& 1 0*$E .8'-cutt' /iscount 8o 7td @ IE (1961) 41 I! 191
4 *s a reassessment done on the direction of the super!isor" officer
!alid :
:es, so far as the statutor" pro!isions are satisfied, iEeEE $he A& has
applied his own mind and had reasons to elie!e that income has
escaped assessment (there must e nothing on record to show that the
A& himself elie!ed otherwise) .8I @. 2bdu-
C+'der 2+#ed (2006) 1%6 '5#'n 206 (Cer)
4 0an the assessee reGuest for reassessment :
DB3
('A--'--9'+$
\sscssmcn! lrcccdurc \sscssmcn! lrcccdurc
. .
4 0an the A& issue notice u1s B4? on the asis of suspicion :
2o t s to on t s s o r sons
to l v not susp t
:esE &nce !alid proceedings are started u1s B4> the A& not onl"
has #urisdiction ut it is dut" to le!" tax on the entire income that has
escaped assessment during that "ear.@ A'4'n &o+'n !'o @.
8I (1970) 7% I! 7$ ()8)
4 *n the light of @ A'4'n &o+'n !'o @. 8I (1970) 7% I! 7$ ()8) should
the assessee repeat the whole exercise of assessment once again :
DB4
('A--'--9'+$
\sscssmcn! lrcccdurc \sscssmcn! lrcccdurc
. .
4 0an the A& who realises that he made a mista4e during an assessment
later reopen the case for reassessment u1s B4> :
2o nor n o l # s not n x us
or r op n n
+oE +ot if the facts efore the A& ha!e not changed
PPPPPEEG = 24'rw'- @ 28I (1994) 20( I! 79% (2--)
4 0an the assessee claim a loss (not originall" claimed in the return) and
see4 to carr" it forward on the asis of the reassessment:
DB2
('A--'--9'+$
\sscssmcn! lrcccdurc \sscssmcn! lrcccdurc
. .
4 0an the A& reassess the income in a case where the intimation u1s B43
(B) was issued without an" addition and no new facts are there : *s
it a change of opinion :
1 s t ll ot r p r3u s t s or
r ss ssm nt r s t s 5, s s not
n o op n on us ( s not
ss ssm nt6
DB8
('A--'--9'+$
\sscssmcn! lrcccdurc \sscssmcn! lrcccdurc
. .
4 *n a case of non-filing of return, what is the earliest point of time for
issue of notice u1s B4? :
s soon s t 1 s ov r n no r turn s
l t ss ss nor n not s
ssu to m u s ( ( n om
#oul v s p ss ssm nt t m r
t t t ss ss n l r turn u s
( t o s not ollo# t t no n om
n s to v s p ss ssm nt
unt l p r o pr s r u s ( s
ov r o# v r n ss ss volunt r l
l s r turn u s ( t nnot
pro u s 5 or lur to l
r turn xpl n t on ( o 6
:esE $here * s nothing in -ec B4> to suggest that the A& cannot do
so 5 o# v r t on t ons or r ss ssm nt
n to s t s 6 .!'#
=r's'd @ IE (199%) (2 '5#'n 199 (2--)
4 *f the assessee disclosed all facts ut claimed enefit on the asis of a
wrong interpretation of law, does it amount to failure in disclosing all
facts:
DB>
('A--'--9'+$
\sscssmcn! lrcccdurc \sscssmcn! lrcccdurc
. .
RECORDIN OF REASONS M COMM"NICATIN T%EM TO ASSESSEE RECORDIN OF REASONS M COMM"NICATIN T%EM TO ASSESSEE
4 0an the assessee challenge the VeliefJ of the A&:
, x st n o l n
ll n t ss ss ut # t r
t s roun s ( or r sons r 3u t
or not s not m tt r or t ourt to
nv st t
While #udging the !alidit" of notice u1s B4? the court has to
restrict itself to the record 'di?ond' !'#u-u @ IE
(1990) (6 I! 14( (2=)
n v r ss ss ll n s t
v l t o not u s t ourt
s oul ll or t r or s
t r r no r sons on r or t not
s n l #
*n response to the notice u1s B4?, the assess can either file a fresh return
of income &( reGuest that his return filed u1s B3A ma" e treated as his
return filed in response to notice u1sB4?E
*f A& does not dispose his o#ections and goes ahead with assessment,
assessee should file u1s B44A with the 60*$, and if his application is
re#ected " 60*$, he should file a Writ petitionE
2o r J s mpo# r to v
s n t on s n t on , #oul nv l
DDC
('- 6.D*0A$A
\sscssmcn! lrcccdurc \sscssmcn! lrcccdurc
. .
4 Does the concept of V(es 6udicataJ appl" in case of assessments:
2o n 1 s s l ont n
ss ssm nt p r o n s on n on 1
o s not or n r l op r t s r s
u t n r sp t o m tt r
n n su s 3u nt r or t s not
ourt n s not pr lu rom
rr v n t on lus on n ons st nt # t
s on lus on n not r r
, ou t pr n pl s o r s
u t o not ppl to n om t x
pro n s # n 3u st on o l # or
t # s n t ss ss s o#n s
or n rl r ss ssm nt r n n
nt l 3u st on om s up ons r t on
or l t r r ,r un l # ll
ust n pl n r l n on t
rl r s on
2o r t pr t opt
t ss ss n pt t , x
ut or t s n rl r rs r oun to
str tl not n or n # t l #
t n t t x ut or t s r oun to
t t v # # s n or n # t
l # n t r not stopp t r
on u t rom ns st n on r nt
pr t ons st nt # t l #
Sec (B93 DD
-ec B24E PP
2o m st pp r nt rom r or
must n o v ous n p t nt m st n
not som t n # n st l s
# o lon r #n r son n )
"'-'r'# @ IE (1971) (2 I! %0 ()8)
4 *f the A& made a mista4e in law, can it e corrected u1s B24:
+oE PA point that was not examined on fact or in law cannot e dealt
as a mista4e apparent on the record
.8I @ Dero 80c-es = 7td (1997) 94 '5#'n 271 I! 46$ ()8)
4 *s issuing a notice for -ec B24 mandator" in all cases of rectification:
DD8
('0$*)*0A$*&+
\ ssc ssm c n ! l rc cc d u rc \ ssc ssm c n ! l rc cc d u rc
. .
4 0an the A& loo4 at the record of earlier "ears for ma4ing an order u1s
B24:
1 s , r or or t purpos o s
( s t r or v l l to t
ut or t s t t n t t on o
pro n s or r t t on n not
m r l t r or o t or n l
pro n s sou t to r t
8I @ & ! & =-'nt'tion = 7td (1999) 240 I! 660
(&'d)
+o PEwhate!er can not e done u1s B43 (B) (a) can also not e
done u1s B24 read with sec B43 (B) (a)
DD>
('0$*)*0A$*&+
\ ssc ssm c n ! l rc cc d u rc \ ssc ssm c n ! l rc cc d u rc
. .
4 What is meant " Vmista4eJ:
'xamples of mista4e include 7 (i) error of law@ (i) error of fact@ (iii)
clerical or arithmetical error@ (i!) error in determining written down
!alue@ (!) o!erloo4ing the oligator" pro!isions of the legislature@ (!i)
mista4es arising as a result of suseGuent retrospecti!e amendment of
law
DD?
('0$*)*0A$*&+
\ ssc ssm c n ! l rc cc d u rc \ ssc ssm c n ! l rc cc d u rc
. .
4 0an the A& do a rectification on the ehest of his superior officers:
2o r t t on s on t
not # n t t t
r t t on # s propos s p r
omm ss on rs nstru t ons #oul
nv l !'B3ut'n' &inin4 24encies
@ IE (1979) 11( I! %(% (!'B)
4 *f an A& has made a rectification, can his successor cancel it :
V (ecordJ referred to it sec B24 does not mean onl" the order of
assessment ut it comprises all proceedings on which the assessment
order is ased and the *$& is entitled for the purpose of exercising his
#urisdiction u1s B24 to loo4 into the whole e!idence and the law
applicale to ascertain whether there was an error
PPPEE&'+'r'n' &i--s = 7td IE (19%9) $6 I! $%0 ()8)
2o t must n orm pr s r
t -ul s IE @ )e4+u
"uc+'i'+ )ett0 (1994) %2 I! %$( ()8)
4 After the appellate order is it necessar" to issue a fresh order:
:esE Pthe appellate 1 re!isional order Pthat will hold the field
under the Doctrine of mergerE $herefore it is the dut" of the A& to issue
a fresh notice of demand . IE @ )e4+u "uc+'i'+
)ett0 (1994) %2 I! %$( ()8)
4 When the notice u1s B28 is issued is the A& reGuired to compute tax in
the assessment order also: