What is The Date After Which Your Return Can Not Be Selected For Scrutiny ?

Budget 2008 -Fine Prints

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As on today, when A.O selects your case for scrutiny , a notice u/s 143(2) is served on you . This notice must be served within twelve months from end of month of filing of your return. So let us say , for Asst Yr 2007-08, you filed return on 29/7/2007, the A.O must serve on you a notice u/s 143(2) by 31/7/2008 .

Budget 2008 proposes to fix that A.O can not select your return for scrutiny after six from the end of financial year in which the return was filed. The amendment in section 143(2) is proposed is as under :

(b) in sub-section (2), in clause (ii), for the proviso, the following proviso shall be substituted,namely

‘‘Provided that no notice under clause (ii) shall be served on the assessee after the expiry of six months from the end of the financial year in which the return is furnished.”.

In practical sense , if you file return for Asst Yr 2007-08 by due dates or by 31st March 2008 , and you do not get a notice u/s 143(2) by 30/9/2008 , then your case is not selected for scrutiny.

In fact ,return pertaining to Asst Yr 2007-08

1. filed by 31/3/2008 can not be selected for scrutiny after 30/9/2008.
2. Filed by 31/3/2009 (late return) can not be selected for scrutiny after 30/9/2009.

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Don't Worry.Be Happy!You arn't Scrutinized.

Someone Asked on This blog

For the assessment year 2005-2006, IT dept. asked me to furnish the Form-16 again. When I inquired in detail I found out that they are are looking at source of income for buying a house (that I registered in 2005)?They have not come back asking any more documents. What I want to know is:

1. For assessment year 2005-2006, till when the scrutiny can go on? Is there a time limit by which the scrutiny needs to end?

2. For the property purchased and registered in 2005, till what time can they ask me to furnish the proof of income?

There is simple way of knowing if you are being scrutinized by the department. See the date of filing return. If you have received a notice u/s 143(2) [this notice specifically mention this section on the notice] within one year from the end of month in which the return was filed , then yes scrutiny is being carried out .However, I feel that your case is not being scrutinized otherwise you might have got different notices by this time.

Anyway, specific answer to your question no. 1 is that if notice u/s 143 for Asst Yr 2005-06 was served on you , assessment shall be time barred on 31/12/07

Answer to second question is that under the provision of the I T Act, any escaped income can be assessed upto six back years . It means that A.O can ,on credible information and belief that any income of any assessee has escaped assessment,can issue notice for reassessment of income of Asst Yr 2000-01 upto 31/03/2007 not beyond that.

I would advise that if you have purchased the flat from your known source of income , there is nothing to worry about. And remember that A.O has no power to ask for any information unless he takes permission from CIT or any proceeding against you starts.

Unless you get a notice in writing, you do not have to give any papers to anyone.

Dont worry,Be Happy!

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