Today we will discuss topic Notice under section 148 will be issued by the department if the Assessee has not filed the Return or file the return with income escaping.
Brief on Section 148 Income Es capping assessment
If the AO has reason to believe that any income chargeable to tax has escaped assessments, he may assess or reassess such income, other than the income involving matters which are the subject matter of any appeal, reference or revision, which is chargeable to tax and has escaped assessment.
In case income that has escaped assessment is Rs 1 lakh or less notice under section can be sent within 4 years of the end of the relevant assessment year. In case income escaped is more than Rs 1 lakh then such notice can be sent within 6 years. The Assessing Officer shall before issuing a notice under this section, record his reasons for doing so.
If Assessee has not filed the return –
File the return of income with due care after taking the care of –
1 Download 26 AS
2 Check the Demat account if transaction done in share
3 Check if any property purchase in that year
4 check if any cash deposited in the bank accounts
After Filing the Return of Income take the reason of reopening the assessment and submit the documents
If Assessee has already filed the return –
Obtain the Reason for Re-opening – Give the letter to assessing officer and take the Reason for Re-opening notice the Taxpayer always has the right to obtain a copy of the reasons for reopening the file and object of the Notice.
Submit the required documents to the AO
Attend the Hearing
If Income has been escaped –
If Assessing office has found any income has been escaped in that year he will levy the interest under section –
| Delay in filing Income Tax Return | 234A |
| Delay in payment of Advance Tax | 234B |
| Delay in payment of any instalment of Advance Tax | 234C |
Penalty for concealment of income under section 271(1)(C)
If the AO satisfied that any person has ‘concealed’ or ‘furnished inaccurate particulars of income he will levy the penalty under section 271(1)(C). Assessee has to respond on that notice
It is on the power of Assessing officer and Commissioner to waive off the penalty, You can find out here case laws of 271(1)(C)
