10 December 2019
The ITAT has sent back the matter to the ITO with specific wordings saying that he should take details of capital gains concerning mutual funds, stock trading and F&O and do his assessment accordingly. My query is - if the ITAT order is very specific in the wordings (i.e., talking only about Stock-trading, F&O and Mutual Funds), can the ITO / AO go beyond the said parameters and seek information relating to bank account, house purchase, audit of accounts, etc, etc ?
11 December 2019
Please disclose the section under which re-verification has been said...only word not be there,there must stated section too....please state those section if possible then it will help us to identified exact cause
11 December 2019
Thanks. I am reproducing what notice the ITO has sent to me. Honorable ITAT vide order in... has set aside the case of AY 2007-08 and restored to the file to AO with the following directions: "that it is a fit case to set aside the impugned order and to remand the matter to the file of the AO for having a fresh look at the issues after affording opportunity to the assessee to produce all the details of intraday trading, futures and options, mutual funds and LTCG & STCG in mutual fund and shares during the year and on such production of this information, the learned AO shall proceed to assess the income of the assessee as per law". In view of the above, you are required to furnish all the details of intraday trading, futures and options, mutual funds and LTCG & STCG in mutual fund and shares during the year under consideration for AY 07-08 alongwith supportings of your claim before me on this date at 11 am. This may be trated as notice u/s 142(1) of the act and complied accordingly.
12 December 2019
Yes he can audit all suspicious account...under sec 142(1)
Please 142(1) read as follow------
Section 142(1) in The Income- Tax Act, 1995 (1) For the purpose of making an assessment under this Act, the 1 Assessing] Officer may serve on any person who has made a return under section 139 2 or in whose case the time allowed under sub- section (1) of that section for furnishing the return has expired] a notice requiring him, on a date to be therein specified,- (i) 3 where such person has not made a return 4 within the time allowed under sub- section (1) of section 1391, to furnish a return of his income or the income of any other person in respect of which he is assessable under this Act, in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed, or] (ii) 5 ] to produce or cause to be produced, such accounts or documents as the 6 Assessing] Officer may require, or (iii) 7 ] to furnish in writing and verified in the prescribed manners information in such form and on such points or matters (including a statement of all assets and liabilities of the 999999. -- (4) After a regular assessment has been made, any amount refunded on provisional assessment made under sub- section (1) shall be dealt with in the manner specified hereunder, namely:- (a) where the sum refundable on regular assessment is equal to or exceeds the amount refunded under sub- section (1), the amount so refunded shall be deemed to have been refunded towards the regular assessment; (b) where no refund is due on regular assessment or the amount refunded under sub- section (1) exceeds the amount refundable on regular assessment, the whole or the excess amount so refunded shall be deemed to be tax payable by the assessee and the provisions of this Act shall apply accordingly. (5) Nothing done or suffered by reason or in consequence of any provisional assessment made under this section shall prejudice the determination, on the merits, of any issue which may arise in the course of the regular assessment. (6) There shall be no right of appeal against a provisional assessment made under sub- section (1)." 1. Substituted for" Income- tax" by the Direct Tax Laws (Amendment) Act, 1987, w. e. f. 1- 4- 1988. 2. Substituted for" or to whom a notice has been issued under sub- section (2) of section 139 (whether a return has been made or not)" by the Direct Tax Laws (Amendment) Act, 1987, w. e. f. 1- 4- 1989. The italicised words were substituted for" or upon whom a notice has been served" by the Taxation Laws (Amendment) Act, 1975, w. e. f. 1- 4- 1976. 3. Inserted by the Direct Tax Laws (Amendment) Act, 1987, w. e. f. 1- 4- 1989. 4. Substituted for" before the end of the relevant assessment year" by the Finance Act, 1990, w. e. f. 1- 4- 1990. 5. Renumbered for clause (i) by the Direct Tax Laws (Amendment) Act, 1987, w. e. f. 1- 4- 1989. 6. Substituted for" Income- tax" by the Direct Tax Laws (Amendment) Act, 1987, w. e. f. 1- 4- 1988. 7. Renumbered for clause (ii) by the Direct Tax Laws (Amendment) Act, 1987, w. e. f. 1- 4- 1989. assessee, whether included in the accounts or not) as the 1 Assessing] Officer may require: Provided that- (a) the previous approval of the 2 Deputy] Commissioner shall be obtained before requiring the assessee to furnish a statement of all assets and liabilities not included in the accounts; (b) the 3 Assessing] Officer shall not require the production of any accounts relating to a period more than three years prior to the previous year.
12 December 2019
Dear Sir, Normally if the order is specific then ITO cannot go behind it. However, if such other matters and documents related to then he may ask you to produce some more documents which he feels necessary in the given circumstances of the case.