THE SEPARATION OF POWER IN THE FRAMEWORK OF TAX ASSESSMENT
AUTHOR – SNEHA RAWAT & HARSH TYAGI, STUDENT AT SYMBIOSIS LAW SCHOOL, NOIDA, SYMBIOSIS INTERNATIONAL (DEEMED UNIVERSITY), PUNE
BEST CITATION – SNEHA RAWAT & HARSH TYAGI, THE SEPARATION OF POWER IN THE FRAMEWORK OF TAX ASSESSMENT, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 5 (1) OF 2025, PG. 73-77, APIS – 3920 – 0001 & ISSN – 2583-2344.
INTRODUCTION
The assessment and the reassessment proceedings mentioned mainly in §140 – §149 of the income tax act, 1961 (herein referred as the Act), has undergone several amendments since its inception. It has been, from the beginning, the main focus of legislative reforms and judicial scrutiny, due to its pertinent nature. Every individual, whoever exceeds the exemption limit, is subjected to file an income tax return within a prescribed date.[1] Similarly, every company, having a turnover above the prescribed upper limit, is subjected to a tax audit,[2] or an audit in another act[3] within a due date as per the section. Most of these declarations are facilitated by a CA or a knowledgeable expert in this field. However, all declarations are not completely scrutinized by the tax authorities. That is where the assessment provision comes in.[4] Assessment verifies and validate these declarations such that losses are not overstated, and accuracy and legitimacy of the returns filed are preserved. The goal is to ensure the integrity of tax collection and avert any possibility of misuse and inconsistencies in the financial data reported. Because the executive body is vested with such powers to seize declare and check the data anytime, it becomes pertinent to have a balance and check of judiciary.
[1] Income Tax Act 1961, § 140 – § 149.
[2] Income Tax Act 1961, § 44AB.
[3] After the amendment of 2023, proviso 2 of § 44AB, gives such an exemption.
[4] Income Tax Act 1961, § 143.