Someone Asked on This blog
For the assessment year 2005-2006, IT dept. asked me to furnish the Form-16 again. When I inquired in detail I found out that they are are looking at source of income for buying a house (that I registered in 2005)?They have not come back asking any more documents. What I want to know is:
1. For assessment year 2005-2006, till when the scrutiny can go on? Is there a time limit by which the scrutiny needs to end?
2. For the property purchased and registered in 2005, till what time can they ask me to furnish the proof of income?
There is simple way of knowing if you are being scrutinized by the department. See the date of filing return. If you have received a notice u/s 143(2) [this notice specifically mention this section on the notice] within one year from the end of month in which the return was filed , then yes scrutiny is being carried out .However, I feel that your case is not being scrutinized otherwise you might have got different notices by this time.
Anyway, specific answer to your question no. 1 is that if notice u/s 143 for Asst Yr 2005-06 was served on you , assessment shall be time barred on 31/12/07
Answer to second question is that under the provision of the I T Act, any escaped income can be assessed upto six back years . It means that A.O can ,on credible information and belief that any income of any assessee has escaped assessment,can issue notice for reassessment of income of Asst Yr 2000-01 upto 31/03/2007 not beyond that.
I would advise that if you have purchased the flat from your known source of income , there is nothing to worry about. And remember that A.O has no power to ask for any information unless he takes permission from CIT or any proceeding against you starts.
Unless you get a notice in writing, you do not have to give any papers to anyone.
Dont worry,Be Happy!
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