Query regarding notice u/s.142(1)

[Himatlal Pandit]

Sir,

Our client has received notice u/s. 142(1),for A.Y.2009-10, from A.O.for funishing Trading A/c.,Profit & Loss A/c. and Balance sheet for Accounting year 2008-09, though notice u/s. 143(2) is not received upto 30-09-2010.Can A.O. can ask the said documents though case is not under scrtiny assessment for A.Y.2009-10. Whether A.O. can ask the abovesaid documents for A.Y.2010-11, by issuing notice u/s. 142(1)? Please give reply of our query.

Thanking you,sir,

Yours faithfully,

For, Pandit & pandit

Chartered Accountants.

[CA Rachit Agarwal]

AO cannot ask for financial statements for the AY- 2009-10, if the notice not issued before 30.09.2010 provided the return is filed in the year 2009-10. The assessment would be time barred assessments pursuant to section 143(2)(ii).

AO can defninitely ask for the financial statements for the AY 2010-11, provided the notice is issued before 30.09.2011.

[KAMAL PODDAR]

what happens if notice is issued but not received

AI Summary

Time-bar on financial statement requests prevents authority from seeking past-year accounts after assessment limitation, future requests allowed.
If a taxpayer filed the return within the filing year and no requisite notice was issued before the statutory cutoff, the authority cannot require production of trading account, profit & loss account and balance sheet for that past assessment year because the assessment is time-barred; however, the authority may require those financial statements for the next assessment year provided the notice is issued before that year's statutory cutoff. The issuance-versus-receipt of notice raises a separate procedural question affecting compliance.