FIRST FORMAL NOTICE U.S. 143.2 – LONG TIME SHOULD BE ALLOWED- time allowed of few days is un-necessarily putting pressure on all- is it just to harass assesses and tax professionals?

[CA DEV KUMAR KOTHARI]

For better tax administration and convenience of all concerned:

FIRST FORMAL NOTICE U.S. 143.2 – LONG TIME SHOULD BE ALLOWED- time allowed of few days is un-necessarily putting pressure on all- is it just to harass assesses and tax professionals?

Selection of Return for scrutiny:

When a Return is selected for scrutiny, the first formal notice u.s. 143.2 is to be served on assesse within prescribed time. For example, for Assessment Year 2017-18 AY or any belated ROI when ROI was filed within 31.03.2017, the time allowed to serve notice u.s. 143.2 intimating selection of ROI for scrutiny is up to 30.09.2017. Limitation for completing assessments for AY 2017-18 will be 31.12.2019.

Present time barring cases:

At present generally Assessing Authorities are busy in completing time barring cases – generally for AY 2016-17. Therefore, ground reality is that in most of cases hearing for AY 2017-18 will not take place till 31.12.2018 and even up to 31.03.2019 because after completing time barring cases, many administrative work take preference and assessment for next year are not on priority.

Hearing for AY 2017-18 is not likely to take place immediately after issue of notice u/s 143.2

Therefore, practically no hearing will take place for AY 2017-18, within few months though notice u.s. 143.2 has to be served within 30.09.18. In response to notice assesse can submit documents and evidences relied on by him. Generally these are already on record in form of audited accounts, tax audit report, and information in ITR, 26AS form etc.

Practical aspects – no purpose (except harassment) for such short date of hearing:

There is practically no purpose in fixing date of hearing vide notice u.s. 143.2 within few days from date of notice. However, we find that notices are issued and case is fixed for hearing within few days from date of notice. In some cases even notice was not served before the date of hearing.

For example, information from few notices u/s 143.3 is given below:

Date of notice u.s143.2	Date of hearing	Whether requisition provided ?	Time between date of notice and date of hearing days
080818	050918	No.	28
190918	260918	No.	7
090818	300818	No.	21
160818	300818	No.	14

Similar are many other notices.

Un-necessary pressure on all concerned and system:

At present most of assesse concerned staff and professionals are busy in matter related to filing of Return for which last date is 30.09.18.

Even websites of Income-tax Department are heaving heavy load due to uploading of ITR and various reports.

Therefore, even if an adjournment petition is to be filed, it will cause un-necessary load on all concerned including the AO and the website.

Author see no purpose in fixing date of hearing just few days from date of notice. In some cases, even notice is not served within such short time. Even emails of department are posted after few days from the date of notice. In some cases even email was received after the date of hearing fixed in the notice.

If at all one find purpose in such short period allowed is TO HARASS ASSESSEE AND TAX PROFESSIONALS.

Other practical aspect:

If assesse physically file documents it is likely that when hearing will be started during January 2019 or thereafter, the AO may not find documents in his records or difficult to trace and assesse will need to file again.

Request for allowing long time:

While issuing notice u/s 143.3 for initiation of scrutiny assessment, long time should be allowed – when hearings are likely to take place. Therefore, for AY 2017-18 vide notice u/s 143.2 date of hearing can be fixed after February 2019. This will help all concerned.

Department can also ensure that before the date of hearing is fixed vide notice u/s 143.3 another procedural notices (e.g. u.s. 142)  calling for information and documents  can be issued and date of hearing can be fixed on the same date as fixed vide notice u/s 143.2.  

This will reduce un-necessary paper work, un-necessary submissions of documents online or physically.