Discuss the provisions relating to Assessment by the Assessing Officer under the Income Tax Act, 1961.”
⭐ QUESTION 7 “Discuss the provisions relating to Assessment by the Assessing Officer under the Income Tax Act, 1961.” ⭐ INTRODUCTION Assessment is the core mechanism under the Income Tax Act through which the Income Tax Department: examines the return filed by the assessee, verifies income, deductions, and exemptions, determines the correct tax liability. The Assessing Officer (AO) is empowered under Sections 2(7A), 143, 144, 147, 148, 153 etc. to conduct assessment. ⭐ TYPES OF ASSESSMENTS UNDER THE INCOME TAX ACT (DETAILED) 1. SELF-ASSESSMENT (Section 140A) This is the first stage of assessment. The assessee himself calculates: total income tax payable interest fee and pays tax before filing return. AO’s role: If the self-assessment is incorrect, AO may issue notices under Sections 142(1) or 143(2). 2. SUMMARY ASSESSMENT / INTIMATION (Section 143(1)) This is a computerized preliminary check done by CPC (Central Processing Centre). AO checks: arith...