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June 29 To July 5, 2019 u Taxmann’s Corporate Professionals Today u Vol. 45 u 25Brief Introduction
1.One taxpayer said: “I got a scrutiny notice” and grinned.
His buddy asked: “Why then are you smiling from ear to
ear?”
The assessee replied “I have to give answers online which
means that I don’t have to see the face of the income-tax
officer.”
Scrutiny notices have turned modern, but time limits
regarding scrutiny are as old as the hills. They woefully lack
asymmetry. A scrutiny notice is not in sync with assessment
provisions. The result is that assessees have to run from
pillar to post. It is anticipated that the budget would take a
relook at scrutiny provisions which are, so to say, standing
on their head.Scrutiny Proviso is not Synchronous
2.Section 143(2) says that a scrutiny notice is to be sent in 6
months time from the end of the financial year under which
the return us filed. But section 143(1) holds that intimation
about tax payable must be given within 12 months from
the end of the financial year in which the return is filed.
Let us understand it with an example:
A person files return on July 11, 2018, with income-tax
department. A scrutiny notice can be sent to him upto
September 30, 2019, otherwise it is termed invalid. On other
hand, he can be intimated about tax payable by March 31,
2020, not afterwards.MEENAKSHI
SUBRAMANIAM
Former IRS officer