taxadmin CPC 143(1) adjustment is a common issue faced by taxpayers when the Centralised Processing Centre increases returned income or reduces a refund. Most such adjustments are mechanical in nature and can be corrected if responded to properly within time. What the law says (in simple words) Section 143(1) allows CPC to make prima facie adjustments … Read more
Section 148A reassessment quashed by courts has become a consistent judicial trend where the mandatory procedure under section 148A of the Income-tax Act, 1961 is not properly followed. After the introduction of section 148A, reassessment proceedings are no longer automatic, and strict procedural safeguards have been built into the statute to protect taxpayers from arbitrary … Read more
Audit objection reassessment under the Income-tax Act, 1961 is not permissible merely because an audit party has raised an objection. Reopening of an assessment can be sustained only if the Assessing Officer independently applies his mind and forms a valid “reason to believe” that income has escaped assessment. Mechanical reopening based solely on audit objection … Read more
Reassessment after 3 years under the Income-tax Act, 1961 is not automatic and can be initiated only if strict statutory conditions are satisfied. Many reassessment notices are issued after 3 years from the end of the relevant assessment year. Such cases are subject to stricter conditions. What the law says After 3 years, reassessment is … Read more
Notice under section 142(1) is one of the most common notices issued during income-tax assessment proceedings. It seeks information, documents, or explanations from the taxpayer to enable the Assessing Officer (AO) to complete the assessment. While the notice itself is procedural and lawful, the manner in which a taxpayer responds often determines whether the assessment … Read more
Notice under section 143(2) of the Income-tax Act is a critical stage in the assessment process. It is the statutory gateway through which the Assessing Officer assumes jurisdiction to scrutinise a return of income. While receiving a 143(2) notice often causes concern, it is important to understand that not every notice is legally valid, and … Read more
Difference between Section 148, 148A and 151 is a critical concept in income-tax reassessment after 01.04.2021. Many taxpayers receive reassessment notices without understanding which provision applies, why it has been issued, and whether the mandatory procedure followed by the Assessing Officer is legally valid. Understanding the difference is important because procedural defects at any stage … Read more
How to reply to a 148A(b) notice is one of the most critical stages in reassessment proceedings under the Income-tax Act. A notice under section 148A(b) is not reassessment yet, but a weak or careless reply at this stage almost guarantees issuance of a notice under section 148. Below is a practical, field-tested structure for … Read more
If you have received a notice under section 148A of the Income-tax Act, it means the department is considering reopening your assessment. This stage is critical. A careless or delayed reply can lead to reassessment proceedings under section 148. Below is a clear, practical explanation of what you should do—without panic and without unnecessary admissions. … Read more
What are Sections 69 and 69A of the Income-tax Act? Section 69 and 69A of the Income-tax Act, 1961 deal with unexplained investments and unexplained money respectively. These provisions empower the Assessing Officer to treat certain amounts as income where the assessee is unable to satisfactorily explain their source. While Section 68 applies to unexplained … Read more