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Tarun (PSE)     30 April 2010

Notice 143(1) received after 1 yr 6 months


I have received notice 143(1) from the CPC on 19th Apr 2010 for AY 2008-2009. I had filed my returns on 1st Sep 2008. 

I read section 143(1) and several discussion forums. Most of them conclude that notice 143(1) is invalid if it is sent beyond 1 year from filing date. If this is true, then what should be my course of action ?

According to the notice, I need to either pay the demand within 30 days of receipt of the notice


If I am not satisfied with the intimation, I may seek rectification as per section 154 with CPC or appeal under section 246A of the IT act, 1961 in my Territorial Jurisdiction.



 10 Replies



Its true that the intimation u/s 143(1) cannot be sent after 1 year from filing of return. But I dont think the A.O would agree with you if u dont make payment of the taxes due.Instead he will issue show cause notice for penalty.

In my view you should go for the appeal. At the appellette level u may succeed. Since there are very less chances that the A.O would drop the intimation if u file application u/s 154.

Vineet (Director)     02 May 2010

An order u/s 143(1) can be issued within one year of end of financial year in which the return is filed. So to that extent I would like to correct Ld Mr Bajaj.


Yes you should have received intimation u/s 143(1) by 31-3-2010, but it is merely an intimation what we used to call as summary assessment in common parlance. If you have been asked to pay some demand which you consider is not payable and there is some mistake in as much as non credit of taxes pai (TDS, Advance Tax, SA Tax) or computational mistake, apply for rectification u/s 154. Appeal is a costly affair and not solution for everything. The order u/s 143(1) is generated by system without any application of mind or verification and considering present status and confusion prevailing in the department regarding computerised processing, such mistakes are bound to happen.


So I would suggest rectification application.


Dear Vineet Thanks for correcting. If there is an error apparent in intimation one should go u/s 154 for ractification. But if there is no error but you dont want to pay due taxes on the ground that the intimation is received late i.e you want to challenge the intimation then appeal is the only way out.

Vineet (Director)     02 May 2010

Do Agree with Mr Bajaj. My only concern is, if there no mistake, then the demand must have arisen due to incorrect determination of tax liability in the return or non payment of Self Assessment Tax which is duty of the assessee. The assessee cannot simply escape paying his dues for which a legal liability was casted upon it on account of a delayed receipt of intimation u/s 143(1). The courts may not go for such strict interpretation of  this provision.


I would still suggest, if such is a case, pay the genuine demand rather than wating time an money on a week footing.


Dear Vineet ji taxation laws are always strictly construed as a general rule of interpretation of laws.


Although I agree with you that the due taxes should be paid honestly without indulging into undue litigation if there is no error in the intimation


I agree with Mr. Vineet.  The demand arised due to non credit of the taxes which is already paid by way of advance tax or self assessment tax or TDS. Otherwise the calculation might have been occured. The suggested way is to file a rectification application u/s 154 of the I T Act. If the rectification application is rejected the option for preferring an appeal will lie on the applicant.

Jayanth (Engineer)     19 July 2010

How to do

"is to file a rectification application u/s 154 of the I T Act"

Any specific form to fill etc.


Vineet (Director)     19 July 2010

You can file a simple letter addressed to assessing office with subject Application for rectification u/s 154 of Income Tax Act, AY    .


Please mention your PAN, assessment year, details of order sought to be rectified and full details of issue on which order neeeds to be rectified with copy of supporting documents.

Chiranjiva Ranjan (Advocate and Tax Consultant)     11 September 2010

For filing appeal or rectification application under section 246 or 154 of I.T.Act,1961, Assessee should examine himself abount the quantum of demand, if there is a mistake which apparent from the intimation notice sent under section 143(1)(a), then the remendy will be under section 154 otherwise to challenge the notice, the only remedy is to file appeal.  Mr Tarun has not referred the quantum of  demand. Hence as yet, he has got no sufficent reply if the aforesaid learned persons. So keeping my veiw, Mr Tarun may proceed accordingly. 

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