Notice under section 142 (1) of the Income Tax Act, 1961

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Service of a Notice under Section 142 (1) of the Income Tax Act, 1961 can be served only for the purpose of making an assessment under the Income Tax Act, 1961. It is comprised of three subsections i. e 142 (1) (i), 142 (1) (ii) and 142 (1) (iii)

Notice under section 142 (1) (i):

Notice is issued under this section requiring the assessee to furnish return of his income or the income of a person in respect of which he is assessable.

The Assessing officer issues notice under this subsection when the Assesse is failed to furnish the return of his income or the income in the respect which he is assessable within the time allowed under section 139 (1) or before the end of the relevant assessment- year.

The notice under this section can only be issued after the expiry of the time allowed under section 139 (1).The law does not provide any time limit for service of notice under this section for filing the return. But as per general provision, a return cannot be filed after the relevant assessment year.

Thus, if you do not file your return within the time period allowed by the law you may end up getting a notice from the department. For instance, if you are an individual or a firm on which audit is not applicable and have not filed your income tax return by 31st July, you may get a notice to file the income tax return under this section.

Notice under section 142 (1) (ii)

The assessing officer may serve the notice under this subsection to any person:

  1. who has filed the return of income
  2. who has not filed the return within the time allowed under section  139 (1)
  3. who not to produce or cause to produce such accounts or documents as may be required by the Assessing Officer

The notice under this section can only be served after the expiry of the time allowed under sectors 139 (1).

The Assessment officer shall not ask for documents and accounts relating to a period more than three years prior to the previous year. For example for making an assessment for Assessment year 2018 – 19, the Assessing officer may ask for document and accounts for FY 2014 – 15, FY 2015-16,  FY 2016 – 17 and of course FY 2017-18 (previous year).

If the Assessing officer asks for the documents and accounts for a period of more than three year prior to the previous year, the Assesse may treat the notice in two ports. First part includes documents and accounts for 3 years prior to previous year and other for documents and account for period beyond 3 year.  The former part shall be treated as legal and latter part shall be treated as illegal.

Notice under section 142 (1) (iii)

Notice under this section is served to any person

  1. who has filed the income tax return
  2. who has not filed the return within the time allowed under section 139 (1)

The notice is served to furnish information in writing and verified in prescribed manned as the Assessing officer may require. The Assessing officer may also ask for the statement of Assets and Liabilities whether included in the accounts or not.

Prior approval of Joint commission is required if the Assessing officer wants to ask for statement of assets and liabilities NOT INCLUDED in the accounts. The statement of Assets and Liabilities can be asked for any number of previous years.

Mr.tax helps persons in resolving issues related to Income Tax. Book your appointment now if you have received any notice from the income tax department.

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