Lawyers who have WORKED in Section 143(2) & 69A of Income tax act

305 votes

Any communication from the income tax department creates panic for taxpayers. However, Section 143 (1) intimation is not something one needs to worry about.

Income tax department carries out a preliminary assessment of all the returns filed and informs taxpayers of the result of such preliminary assessment. This assessment primarily includes arithmetical errors, internal inconsistencies, tax calculation and verification of tax payment. Such communication to the taxpayer post the preliminary assessment is called intimation under Section 143(1).

Whereas Sec 69 A of Income Tax Act, 1995 is all about

Unexplained money & other valuables -

That means, in any financial year, if the assessee is found to be the owner of any money, bullion, jewellery or other valuable article and such money, bullion, jewellery or valuable article is not recorded in the books of account, maintained by him for any source of income, and the assessee offers no explanation about the nature and source of acquisition of the money, bullion, jewellery or other valuable article, or the explanation offered by him is not, in the opinion of the Assessing Officer, satisfactory, the money and the value of the bullion, jewellery or other valuable article may be deemed to be the income of the assessee for such financial year.