The basic purpose of section 142(1) tax notice is to inquire the details of the assessee before making an assessment under the Act. It is like a preliminary investigation. The reasons for the issuance of Section 142(1) Tax Notice can be:
- By issuing section 142(1) tax notice, the AO may ask an assessee to furnish his ITR in respect of income for which he is assessable, in case the assessee has not yet filed the return of income within the time allowed.
- The Assessing Officer may ask to produce accounts or documents which he may require for the purpose of making an assessment.
- The AO may also ask the assessee to furnish in writing any information on any matter which may include the statements. For Example-Statement of assets and liabilities on a particular date