Returns and Assessments Chapter- 17
8 .1 A return of income shall be taken to be complete on fulfilment of the following conditions:
A return of income
shall be in the prescribed form and shall be accompanied by annexures, statements or
documents,
shall fully state all the relevant particulars or information specified in return form and
declaration of the records kept by the taxpayer; and
shall be signed by the person or the person's representative, where applicable.
Important note: A complete return filed by a taxpayer will be considered an assessment order as
stated above and the said assessment may be amended u/s 177 / 122 of the ITO, 2001. Even where
the case of a taxpayer has been selected for total audit u/s 177 or for amendment in assessment u/s
122 the loss already assessed u/s 120 may be carried forward unless the same is not amended
through an order under the aforesaid sections.8 .2 Status of return not complete under the ordinance [Section 120(3), (4), (5) and (6)]
Where the return of income furnished is not complete, the Commissioner Inland Revenue shall
issue a notice to the taxpayer informing him of the deficiencies (other than incorrect amount
of tax payable computed or short payment of tax payable) and directing him to provide
such information by such date specified in the notice.
Where a taxpayer fails to fully comply the notice by the due date, the return furnished shall be
treated as an invalid return.
Where in response to a notice the taxpayer has by the due date fully complied with the
requirements of the notice the return furnished shall be treated to be complete on the day it was
furnished.
No notice of short documents shall be issued after the expiry of 180 days from the end of
the financial year in which return was furnished- Restriction of proceedings (U/S 120B)
1) Where any person entitled to declare undisclosed assets, expenditure and undisclosed sales
under the Assets Declaration Act, 2019 declares such assets, expenditures or sales to pay tax, no
proceedings shall be undertaken under this Ordinance in respect of such declaration.2) Notwithstanding anything contained in any other law, for the time being in force, sub-section
(3) of section 216, except the provisions of clauses (a) and (g) of sub-section (3) of section 216,
particulars of the persons making declaration under the Assets Declaration Act, 2019 or any
information received in any declaration made under the said Act shall be confidential.- Best judgment assessment [Section 121]
Where a person fails to- furnish a return on receipt of notice u/s 114(3) or 114(4) or
- being as non-resident ship or aircraft owner or wealth statement to produce before the CIR or a
special audit penal appointed under section 177(11) or any person employed, accounts,
documents and records required to be maintained or required for the purpose of making
assessment.
The CIR may, based on any available information or material and to the best of his
judgement shall make assessment of such person and the assessment, if any, treated to
have been made on the basis of return or revised return filed by the taxpayer shall be of
no legal effect.
As soon as possible after making an assessment, the CIR shall issue the assessment
order to the taxpayer stating the taxable income, the amount of tax due, the amount of tax
paid, if any and the time, place and manner of appealing the assessment order.
An assessment order as stated above shall only be issued within six years after the end
of the tax year or the income year to which it relates.
Provided that where notice for furnishing a return of income under section 114(4) is issued in
respect of one or more of the last ten completed tax years in pursuance of proviso to sub-