ASSESSMENT, APPEALS & REVISION

Assessment, Appeals & Revision

CBDT
ASSESSMENT WING INVESTIGATION WING

PRINCIPAL DIRECTOR
PRINCIPAL CHIEF GENERAL OF INCOME
COMMISSIONER OF TAX (PDGIT)
INCOME TAX [PCCIT]
DIRECTOR GENERAL
CHIEF COMMISSIONER OF INCOME TAX
OF INCOME TAX [CCIT] (DGIT)

PRINCIPAL CHIEF PRINCIPAL DIRECTOR

COMMISSIONER OF GENERAL OF INCOME
INCOME TAX [PCCIT] TAX (PDGIT)
CHIEF COMMISSIONER DIRECTOR OF INCOME
OF INCOME TAX [CCIT] TAX (DIT)

ADDITIONAL ADDITIONAL
COMMISIONER / JOINT COMMISIONER / JOINT
COMMISIONER (JC) COMMISIONER (JC)

ASSISTANT ASSISTANT
COMMISSIONER / COMMISSIONER /
DEPUTY DEPUTY
COMMISSIONER COMMISSIONER
(AC/DC) (AC/DC)

INCOME TAX OFFICER ASSESSING OFFICER

(ITO)

TAX RECOVERY
OFFICER

INCOME TAX
INSPECTOR

 Commissioner of Income Tax (Appeals) / (ITCA) is also Income Tax Authority.

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 ASSESSMENT, APPEALS & REVISION

CENTRAL BOARD OF DIRECT TAXES (CBDT)

 Statutory body
 Exercise control & supervision overall officers of Income Tax Department by issue of orders
/ Instructions / Circulars.
 CBDT may grant relief to the assesse for genuine reasons under certain sections [139,
201(1A), 234A/B/C, 234E etc.]
 CBDT has no power to amend legislative provisions of the act.

POWERS OF INCOME TAX AUTHORITIES

 GENERAL POWERS
 SPECIAL POWERS

GENERAL POWER [SECTION 131]

IT authorities have all powers of civil court:

 Discovery & Inspection

 Enforcing attendance of any person & examining on oath
 Compelling production of books & documents
 Issuing commission (summons)

SPECIAL POWERS

POWER TO CALL FOR INFORMATION [SECTION 133]

 IT authority can call any information from any person which will be useful or relevant to any
proceedings under the Act.
 If no proceeding is pending and authority is below rank of CIT, he has to take prior approval
of CIT.

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 ASSESSMENT, APPEALS & REVISION

POWER OF SURVEY [ SECTION 133A]

 IT Authority may enter any building or place at which business or profession is carried on
 Prior approval of CGIT / DGIT is required
 If books or assets relating to business & profession are kept at same other place, then such
other place can also be covered under survey.

They can

 Inspect any books of A/C`s & documents

 Check or verify cash, stock or other valuable articles
 Place identification marks on books of A/C`s & documents
 Make an inventory of cash, stock or other valuable articles
 Record statement of any person
 Impound & retain books & documents after recording reasons [maximum 15 working
days]

ENTRY RESTRICTIONS

ENTRY TO THE PLACE OF BUSINESS & ENTRY TO ANY OTHER PLACE

PROFESSION

Only during those hours when

such place is kept open for Only after sunrise but before
conducting B & P sunset
[restriction is only for entry,
not for exit]

 IT authority can also survey any function, ceremony or event but only after conclusion of
such function, ceremony or event and require any person to furnish information & statement.

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 ASSESSMENT, APPEALS & REVISION

SELF ASSESSMENT [SECTION 140A]

 Assesse is required to pay due tax before filing of ROI along with interest and fees
 If there is short payment, then amount paid is first adjusted towards fees, then interest and
balance towards tax.

INQUIRY BEFORE ASSESSMENT [SECTION 142]

NOTICE u/s 142(1)

RETURN BOOKS AND

INFORMATION

If assesse not For making

filed ROI within assessment, AO
time u/s 139(1) can issue notice

If assesse not comply To produce

To furnish
= best judgement books &
information
assessment u/s 144 documents
including details
(maximum 3
of assets &
years prior to
liabilities
relevant PY)

If assesse not comply

= search u/s 144

Processing of return / intimation / summary assessment [section 143(1)]

All returns shall be processed u/s 143(1) and following adjustments are made in
returned income:
 Arithmetical error
 Incorrect claim
 Item inconsistent with another entry
 Deduction exceed limit
 Information not furnished

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 ASSESSMENT, APPEALS & REVISION

 Disallowance of loss claim (if ROI of that year filed after due date)
 Disallowance of expenditure or increase in income indicated in audit report but not taken
into account in computing total income in ROI.
 Disallowance of deduction u/s 10AA & chapter VI-A HEADING (if ROI filed after due date)
 After processing, intimation shall be sent to the assessee for refund/demand (assesse has to
respond within 30 days)
 Final intimation shall be sent to the assesse within 9 months from end of FY in which ROI
was filed.

SCRUTINY ASSESSMENT
NOTICE OF SCRUTINY u/s 143(2)
 For making scrutiny assessment, AO is required to serve notice u/s 143(2)
 The notice has to be served within 3 months from end of FY in which ROI was filed
NOTE:
 Processing of return u/s 143(1) is necessary even notice has been issued u/s 143(2)
 Issuance of notice u/s 143(2) is mandatory for scrutiny assessment u/s 143(3)

BEST JUDGEMENT ASSESSMENT [SECTION 144]

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)

2. Failure to comply with notice u/s 142(1)
3. Failure to comply with special audit directions u/s 142(2A) [special audit]
4. Failure to comply with notice u/s 143(2) [scrutiny notice]

NOTE:

 AO shall issue SCN giving an opportunity of being heard to the assesse [except point 2]
 Discretionary best judgement assessment

In following cases also, assessment may be completed as per section 144

 AO not satisfied about completeness/ correctness of books & documents of assesse

 Correct method of accounting was not regularly followed by assesse
 ICDS have not been followed by assesse.
 Time limit for completion of assessment u/s 144

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 ASSESSMENT, APPEALS & REVISION

Assessment shall be completed [order shall be passed] within 9 months from the end of relevant
AY.

Income escaping assessment [section 147 to 149]

Assessment of income escaping assessment / reassessment / reopening of cases [section

147]

 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 under this section.

NOTICE FOR ASSESSMENT u/s 147 [SECTION 148]

 AO has to serve notice to assessee requiring him to furnish ROI within specified time in
notice.
 Notice can be issued only when
1. AO is in possession of following information which suggest that income chargeable to tax has
escaped assessment
 Any information flagged for relevant AY as per risk management strategy
 Any objection raised by CAG that assessment for relevant AY has not been made as per
provisions of the act.

2. In following cases AO shall be deemed to have information which suggest that income
chargeable to tax has escaped assessment for 3 years.
 Search is initiated u/s 132 on or after 1.4.2021
 Survey is conducted u/s 133A on or after 1.4.2021
 Any money bullion, jewellery, books of accounts & documents belongs to other person found
in search [deemed information of such other person]

 AO has to follow the following steps before issue of notice u/s 148
 Conduct any enquiry [if required]

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 ASSESSMENT, APPEALS & REVISION

 Provide an opportunity of being heard to the assessee by serving show cause notice [SCN] as
to why notice u/s 148 should not be issued [reply by assesse within time specified in notice
being 7 days to 30 days]
 Consider the reply of assesse
 Decide by passing order whether it is a fit case to issue notice u/s 148

 Non applicability of section 148A

 Search is initiated u/s 132 on or after 1.4.2021
 Any money bullion, jewellery, books of accounts & documents belongs to other person found
in search

TIME LIMIT FOR ISSUE OF NOTICE [SECTION 149]

if AO is in possession of books,
documents or evidence which
reveal that income represented in
form of asset [immovable property, Other case
shares, securities, loans &
advances, deposits in bank a/c]
which has escaped assessment in
50 lacs or more for that year

within 3 years from end of

WITHIN 10 YEARS from end relevant AY
of relevant AY

RELEVANT ASSESSMENT YEAR [RAY]

 Normal information case: AY for which information is flagged or CAG raised objection
 Deemed information case [search/survey etc]: RAY means 3 AY immediately preceeding
AY relevant to the PY in which search / survey is initiated / conducted [notice will be issued
for 3 preceeding PY]

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 ASSESSMENT, APPEALS & REVISION

TIME LIMIT FOR COMPLETION OF ASSESSMENT [SECTION 153]

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

Deemed notice [section 156]

If any tax, interest, penalty or any other sum is payable/due, then AO shall serve demand notice
specifying payment.

Faceless assessment (section 144B)

Assessment Centres & unit
National E-Assessment Centre (NEC) → Centralised body at Delhi
Regional E- Assessment Centre (REC)→ Regional Centres
Assesment Unit (AU) Verification Unit (VU) Technical Unit (TU) Review Unit(RU)
Assesment Function Verification Function Technical Assistance Review of
Draft Order

Procedure
NEC shall Serve Notice u/s 143(2) to Assessee
OR
NEC shall intimate the Assessee (Section 144 Case)

NEC Shall Assign case to any A4 in any REC through Automated Allocation System (AAS)

AU may make request to NEC for

 Obtaining Information documents and evidence from assesse any other person
 NEC issue notice to assessed other person for submission of Information & documents
 Conducting Inquiry & Verification

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 ASSESSMENT, APPEALS & REVISION

 NEC will assign to any TU through AAS

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

On the basis of material & Evidences A4 make Draft Assessment Order u/s 143(3)/144 and
send to NEC

NEC will provide Opportunity of being heard to Assesse, if Variation harmful to Assesse
NEC may assign draft order to any RU through AAS

NEC will finalise Draft Order and send copy of Final order to Assessee along with
Demand/Refund

Other points
 All communication between NEC, REC, AU, VU, TU, RU, assessee of any other Person Shall be
exclusively by Electronic mode
 Personal Hearing not allowed in NEC, REC or any unit. However, NEC many allow Personal
hearing through Video Conferencing
 NEC can transfer the case at any stage to Jurisdictional AO

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APPEALS
1. Appeal to CIT(Appeals) [Section 246A to Section 251]
• Appeal can be made by Assessee only (First Appeal Section 246A)
• Within 30 days of payment of TDS or service of notice of demand or order. Delay may
be condoned
• on sufficient cause been shown.
• Appeal is to be made in duplicate in Form No. 35.
• Appeal should be disposed within 1 year from the end of the financial year in which
appeal was made.
2. Appeal to ITAT [Section 252-255]
• Appeal can be made by assessee or Department. (Second appeal Section 253)
• Appeal can also be made under following situations:
(a) Appeal against revision order under section 263.
(b) Against the order passed with previous approval or CCIT under section
115VZC(1) or on the direction of the Dispute Resolution Panel.
(c) Appeal against the order passed by CIT refusing to grant registration under
Section 12AA or refusing to grant approval under section 80G.
• Appeal should be made within 60 days of communication of order to Assessee or
CIT. Delay may be condoned on sufficient cause being shown.
• Appeal shall be made in Triplicate in Form No. 36.
• Disposal of appeal to be made within 4 years from the end of the financial year in
which such appeal was made.
3. Appeal to High Court [Section 260A-260B]
• Appeal may be made by Assessee or Department.
• Appeal should be made within 120 days of receipt of order of ITAT. Delay may be
condoned on sufficient cause being shown by appellant.
• Form of appeal shall be as per Code of Civil Procedure, 1908 and time limit for
disposal of appeal shall also be as per Code of Civil Procedure, 1908.
4. Appeal to Supreme Court: [Section 261-262]
• Appeal may be made be Assessee or Department.
• Appeal is to be made within 90 days from the date of receipt of order of High
Court. (As per Code of Civil Procedure, 1908). Delay may be condoned as per Code
of Civil Procedure, 1908.
• Form of appeal shall be as per Code of Civil Procedure, 1908 and time limit for
disposal of appeal shall also be as per Code of Civil Procedure, 1908.

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