The assessing officer shall send a notice on the assessee requiring him to furnish a return of his income or income of any person in respect of which he is assessable during the previous year corresponding to the relevant assessment year. However, before issuing such notice, the assessing officer is required to record his reasons for doing so.
Recording of the reasons for the issuance of the notice and a Taxpayer’s right to know what those reasons are, is an important part of the procedural law relating to re-assessments.
The following steps to be followed as given below.
- At the first instance, the Taxpayer has to comply with the Notice and file a Return of Income in appropriate manner.
- After having filed the Return of Income, the Taxpayer can ask for a copy of the reasons recorded for issuing the notice and place on record his objections for initiating the proceeding.
- The assessing officer has to supply the reasons for the re-opening within a reasonable time of the request being made by the Taxpayer.
- After receiving a copy of the reasons recorded, the Taxpayer can supplement his objections filed earlier with specific reference to the reasons recorded to show why the reasons do not support a valid inference of escapement of income.
- Assessing Officer has to pass an order disposing the objections raised by the Taxpayer -and only then can he proceed further with the assessment / audit.
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