Clarification on Income Tax Act: Section 143(1A) applies only to cases under 143(1)(a), not scrutiny assessments under 143(3).

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Demand of additional tax on simple processing of income - Applicability of provision of Section 143(1A) where assessment may have been completed u/s 143(3) - The High Court clarified that Section 143(1A) applies only to cases arising from processing under Section 143(1)(a) and does not extend to scrutiny assessments conducted u/s 143(3). It emphasized that once scrutiny assessment proceedings are initiated, the imposition of additional tax u/s 143(1A) is not contemplated by the legislature. - The Court underscored the fundamental principle that there can only be one assessment order for one assessment year, and once scrutiny assessment is completed, any earlier intimation loses its effect.....