As per section 143(2), where the assessee has furnished return U/S 139, or in response to a notice U/S 142(1); to ensure that the assessee has not understated the income or; has not computed excessive loss or has not under-paid the tax in any manner; the AO or the income tax authorities as the case may be; shall issue the notice to the assessee requiring him to attend the AO office on a specified date, or; to produce the evidence on which the assessee may rely in support of the return, before the assessing officer.
Section 143(2) of the Income Tax Act
However, the assessing officer shall issue no notice to the assessee; after the expiry of six months from the end of the FY, in which the assessee has furnished the return.
Section 143(3) – Scrutiny Assessment
Here, the AO of the income tax authorities check the details of the ITR, which the assessee has furnished. The assessing officer verifies the correctness and genuineness of the ITR to confirm that the assessee has not understated the income or shown excessive loss or under the tax in any manner.
The assessing officer or income tax authorities shall not pass an order for making an assessment of the total income or loss, in case of the following persons;
- Research association as referred in clause 21 of section 10,
- News agency as referred in clause 22B of section 10,
- Institution as referred in clause 23B of section 10,
- Association or institution referred in clause 23A of section 10,
- Fund or institution referred in sub-clause (iv), trust or institution referred in sub-clause (v) or any university or other educational institution referred to in sub-clause (vi) or any hospital or other medical institution referred in sub-clause (via) of clause (23C) of section 10,
without giving the effect to the provisions of section 10, unless;
- The assessing officer has intimated the Central Government or the specified authority about the contravention of the relevant section, where in his view contravention has taken place.
- The approval granted to such referred parties has been rescinded.
Where the AO is satisfied that the activities of the above referred parties are not being carried out as per all or any of the conditions subject to which such party was approved; he may recommend to the Central Government to withdraw the approval of the concerned party; after giving a reasonable opportunity of showing cause against the proposed withdrawal to the concerned party. The Central Government may by order, withdraw the approval and forward a copy of the order to the concerned party and the assessing officer.