Notices, Appeal, Revisions, Search & Seizure under Income Tax
If someone receives a notice, they must act on it. The Central Board of Direct Tax, also known as CBDT, has launched a system called the Centralized Communication Scheme, which states that all communication must be done electronically.
The following are examples of several sorts of notices:
REGULAR ASSESSMENT NOTICE UNDER SECTION 143(2):
The purpose of sending this notification is to notify the assessee of the return file that has been selected for review.
NOTICE UNDER SECTION 148 – ASSESSMENT OF INCOME ESCAPE:
The assessing officer will assess or reassess the file if he considers the taxpayer has skipped some income or has failed to file the return, and he will send the notice under this section.
SET OFF OF REFUND AGAINST TAX PAYABLE: NOTICE UNDER SECTION 245:
If the assessing officer believes the taxpayer has not filed the prior year's return and has requested a refund set-off for the current year, the assessing officer will issue a notice under this provision.
INQUIRY BEFORE ASSESSMENT: NOTICE UNDER SECTION 142(1):
If you have filed your return but the assessing officer requires additional information or if you have not filed your return at all, the officer will ask you to do so and will issue a notice under this section.
APPEAL:
An appeal is a mechanism for determining whether a court's decision was proper by challenging the higher court or courts involved in the appeal. In legal jargon, an appeal means'making a request' or 'applying to a higher court' to overturn a lower court's ruling.
The following courts can hear your case:
- If a person is dissatisfied with an assessing officer's decision, they can appeal to the Commissioner.
- If a person is dissatisfied with a Commissioner's decision, they can submit an appeal with the Tax Appellate Tribunal.
- File an appeal to the High Court if a person is aggrieved by a Tax Appellate Tribunal order and there is an issue of law.
– If a person is aggrieved by an order of High Court then file an appeal to the Supreme Court.
REVISION:
If the order which is passed by the Assessing officer is unreasonable or unjust as per the taxpayer then he can file a request for revision of order. Revision in Income Tax order can also lead to increase in tax liability of the taxpayer. The power of revising the order which is passed by assessing officer is with Principal Commissioner or Commissioner only if he has reasons to believe that there has been erroneous in passing the order.
TIME LIMIT FOR ORDER REVISION:
The order must be revised within two years of the day it was passed. The following days are excluded from the calculation of the days for the aforesaid period:
1. The period of time during which the assessee has the option to be re-heard.
2. The time or duration for which a court has issued a stay order in any process.
Even under unusual situations, the period cannot be extended.
SEIZURE AND SEARCH:
AUTHORITIES WITH THE POWER TO ISSUE SEARCH AND SEIZURE ORDER:
- Income Tax Principal Director General
- Income Tax Principal Director.
- Income Tax Principal Chief Commissioner.
- Chief Commissioner of the Internal Revenue Service.
- Assistant Director.
- Income Tax Joint Director.