Chapter 15: Assessment Procedure, Faceless & Reassessment
1. Statutory Return Filing Due Dates (Section 139(1))
| Category of Assessee | Prescribed Due Date |
|---|---|
| Company Assessee (Domestic or Foreign) | 31st October of the Assessment Year. |
| Non-Corporate Assessee whose accounts are required to be audited u/s 44AB or any other law | 31st October of the Assessment Year. |
| Partner of a Firm whose accounts are required to be audited | 31st October of the Assessment Year. |
| Assessee required to furnish Transfer Pricing Report u/s 92E | 30th November of the Assessment Year. |
| All Other Assessees (Individuals, non-audit HUFs/firms) | 31st July of the Assessment Year. |
2. Belated (139(4)), Revised (139(5)) & Updated Returns (139(8A))
| Return Type | Time Limit for Filing | Additional Tax / Penalty |
|---|---|---|
| Belated Return (Sec 139(4)) | Up to 31st December of AY (or completion of assessment, whichever is earlier). | Fee u/s 234F: ₹ 5,000 (₹ 1,000 if total income $\le$ ₹ 5 Lakhs). Loss carry forward denied. |
| Revised Return (Sec 139(5)) | Up to 31st December of AY (or completion of assessment). Can revise original or belated return. | No fee. Replaces original return completely. |
| Updated Return (Sec 139(8A)) | Within 24 Months from end of the relevant Assessment Year. | • Within 12 months: Additional Tax = 25% of (Tax + Interest). • Between 12 to 24 months: Additional Tax = 50% of (Tax + Interest). |
Restrictions on Updated Return u/s 139(8A): Cannot be filed if: (a) it is a loss return, (b) it decreases tax liability or increases refund, (c) search u/s 132 or survey u/s 133A initiated, or (d) prosecution proceedings initiated!
3. Assessment Regimes Summary
| Section | Assessment Head | Statutory Notice & Limitation Period |
|---|---|---|
| Sec 143(1) | Summary Intimation / Processing | Within 9 months from the end of the financial year in which return is furnished. |
| Sec 143(2) | Notice for Regular Scrutiny Assessment | Within 3 months from the end of the financial year in which return is furnished. |
| Sec 143(3) | Scrutiny Assessment Order | Within 12 months from the end of the relevant Assessment Year. |
| Sec 144 | Best Judgment Assessment | Triggered on failure to file return u/s 139, failure to comply with 142(1) or 143(2) notice. |
4. Reassessment Framework (Sections 147 to 151)
| Statutory Stage | Mandatory Legal Requirement |
|---|---|
| Section 148A Inquiry | AO must conduct inquiry, grant show-cause opportunity (7 to 30 days) to assessee, and pass order u/s 148A(d) with prior specified authority approval. |
| Time Limit: Standard Case | Notice u/s 148 can be issued up to 3 years from the end of the relevant AY. |
| Time Limit: Serious Tax Evasion | Can be issued beyond 3 years up to 5 years from end of AY ONLY IF escaped income represented in the form of asset, expenditure, or entry exceeds ₹ 50 Lakhs. |
5. High-Frequency Exam Traps
Trap 1: Notice u/s 143(2) served after 3 months!
Service of notice u/s 143(2) within 3 months from the end of the financial year in which return is filed is a mandatory jurisdictional condition. An assessment completed pursuant to an invalid/delayed notice is void ab initio!
Service of notice u/s 143(2) within 3 months from the end of the financial year in which return is filed is a mandatory jurisdictional condition. An assessment completed pursuant to an invalid/delayed notice is void ab initio!
Trap 2: Updated return filing when search is initiated!
Where a search is initiated u/s 132 or survey u/s 133A, assessee CANNOT file an updated return for that year and any preceding 2 assessment years!
Where a search is initiated u/s 132 or survey u/s 133A, assessee CANNOT file an updated return for that year and any preceding 2 assessment years!