The “Assessment” and “Assessment proceedings” are two distinct terms. The “Assessment” is defined in Income-tax Act, 1961. Sub-section (8) of section 2 of Income-tax Act, defines “Assessment” as “Assessment includes reassessment”. Apex Court in the decision Asstt. CIT v. Rajesh Jhaveri Stock Brokers (P.) Ltd. [2007] 291 ITR 500 (SC)/[2007] 161 Taxman 316 (SC) had the occasion to consider the meaning of word “Assessment”. The word has the meaning,
In short, the word “assessment” is comprehensive as to the whole proceedings for ascertaining the income and imposing “liability” upon the taxpayer, on such income.
The term “proceedings”, denotes an action or where an action is initiated. Accordingly, proceedings relate to the methods in which they are conducted judicially respecting the forms of law. Proceedings is a prescribed course of action for the enforcement of a legal right. Such proceedings under Income- tax shall include proceedings at original stage, Appellate stage and/or such other stages till the matter attains finality under the Income-tax Act, 1961. The proceedings under Income-tax are civil proceedings and judicial proceedings, as well. The caption of the section 136 of Income-tax Act, 1961 denote “Proceedings before Income-tax Authorities to be judicial proceedings”. As per the said provision, the proceedings before the Income-tax Authorities are deemed to be judicial proceedings for the purposes of section 196 of Indian Penal Code Chickanna Silk House v. State of Madras [1974] 95 ITR 422 (Mad.) (HC). As per the new enactment “The Bharatiya Nyaya Sanhita, 2023” earlier section of 196 of Indian Penal Code has now because section 233 with the same caption “using evidence known to be false”. The proceedings thus represent either the steps taken by the taxpayer or the acts of the Income-tax Authority. In the sphere of Income-tax Act, proceedings cover any proceedings of legal nature even though the proceedings do not take place in a court of law.
Having understood what has been meant by the terms “Assessment” and “Assessment proceedings” how the term evidence is of relevance in the procedure for assessment proceedings under Income-tax Act, 1961, requires to be noticed. Chapter XIV of Income-tax Act, 1961, deals with assessment proceedings. The several facets of assessment proceedings are contained in Chapter XIV commencing from sections 139 to 153 and 154 to 158 of Income-tax Act, 1961.
The kinds of assessment under Income-tax Act, 1961 are presently classified as
