The Income Tax Act prescribes 5 main types of assessments, each with a different purpose and scope:

1️⃣ Self-Assessment – [Section 140A]

• This is done voluntarily by the taxpayer while filing the income tax return.

• If tax is payable as per return, it must be paid before filing.

• ✔ No notice from department required.

2️⃣ Summary Assessment – [Section 143(1)]

• Also known as Intimation.

• Done by CPC through computerised checks.

• Adjustments for arithmetical errors, mismatch in TDS, etc., are made.

• ✔ No detailed scrutiny involved.

3️⃣ Scrutiny Assessment – [Section 143(3)]

• Involves detailed examination of the return and accounts.

• Done to verify correctness of income, claims, exemptions, deductions, etc.

• ✅ A notice under Section 143(2) is mandatory.

• Commonly called Regular Assessment.

4️⃣ Best Judgment Assessment – [Section 144]

• Used when:

  • No return is filed,

  • Return is defective and not rectified,

  • Compliance is not made with notices.

• Officer assesses income based on available material.

5️⃣ Reassessment / Income Escaping Assessment – [Section 147/148]

• Done when the Assessing Officer believes some income has escaped assessment.

• Notice issued under Section 148.

• Time limits and prior approvals apply as per amended provisions post Finance Act, 2021.

𝗧𝘆𝗽𝗲𝘀 𝗼𝗳 𝗔𝗽𝗽𝗲𝗮𝗹𝘀 (With Relevant Sections)

1️⃣ Appeal to CIT(Appeals) – [Section 246A]

• First appellate authority.

• Can appeal against order of Assessing Officer.

• Must file appeal within 30 days of receiving order.

2️⃣ Appeal to Income Tax Appellate Tribunal (ITAT) – [Section 253]

• Against orders of CIT(A) or certain orders of AO.

• ITAT is the second level appellate authority.

3️⃣ Appeal to High Court – [Section 260A]

• On substantial questions of law arising from ITAT orders.

• Must be filed within 120 days from date of ITAT order.

4️⃣ Appeal to Supreme Court – [Section 261]

• Against High Court judgment, only if case involves important legal principles.

• Requires certificate of fitness from High Court.

5️⃣ Revision by CIT (u/s 263/264)

• Not an appeal, but a review power:

  • Section 263 – Revision by CIT if order is erroneous and prejudicial to revenue.

  • Section 264 – Revision in favor of taxpayer.

🔄 Faceless Assessment and Appeals (Recent Development)

• Introduced to bring transparency and efficiency.

• Conducted electronically, without physical interface.

• Applies to 143(3), 144 assessments and CIT(A) proceedings.

🧾 Summary Table: