Is notice of reassessment of returns of 2005-06 by ao valid?
Guest
(Querist) 02 April 2012
This query is : Resolved
is notice on 30th march ,2012 of reassessment of returns of 2005-06 by AO u/s148 valid?or is it barred limitation of time?
Raj Kumar Makkad
(Expert) 02 April 2012
This is purely invalid and beyond limitation.
Guest
(Querist) 02 April 2012
@Makkad sir
what reason can be given in support of invalidity?
A V Vishal
(Expert) 02 April 2012
Anila,
Please give details of your case and the rank of the officer issuing the notice.
Time Limit for Issuing of notice u/s 148: Section 149 provides that notice u/s 148 can be issued within 4 years from the end of relevant assessment year if the income escaped does not exceed one lac Rs. If the income escaped is Rs. one lac or more the notice u/s 148 can be issued within 6 years from the end of relevant assessment year subject to the provisions of section 151.
Further first proviso to section 147 provides that if the assessment has been completed u/s 143(3) no action can be taken u/s 147 after the expiry of 4 years from the end of relevant assessment year unless any income chargeable to tax has escaped assessment for such assessment year by reason of the failure on the part of the assessee to make a return under section 139 or in response to a notice issued under sub-section (1) of section 142 or section 148 or to disclose fully and truly all material facts necessary for his assessment, for that assessment year.
Guest
(Querist) 02 April 2012
Vishalji notice reached on 30th march ,2012 of reassessment of returns of 2005-06 by AO u/s148.Which limitation pd. would it attract?4 yr. or 6 yr?
Guest
(Querist) 02 April 2012
signed by addtnl commssnr.
A V Vishal
(Expert) 02 April 2012
4 years from the end of relevant assessment year if the income escaped does not exceed one lac Rs. If the income escaped is Rs. one lac or more the notice u/s 148 can be issued within 6 years from the end of relevant assessment year.
Addl Commissioner is competent to issue the notice,
However, in absence of details it will not be fair to advise.
Guest
(Querist) 02 April 2012
what does 'end of assessment year" suggest?There is no mention of amount in notice.Is it so that we shall count the limitation period starting from April 05 ? If so only 4 yrs limitation will be attracted and not 6 yrs . Am I right?
A V Vishal
(Expert) 02 April 2012
When a notice u/s 148 is received the assessee is asked to file a return of the relevant assessment year. After filling the return the assessee should ask for the copy of reasons recorded for issue of notice u/s 148 and can file objection to the issuance of notice.
Guest
(Querist) 02 April 2012
Sure.But as of now I just wish to how many years are over now starting counting from 2005?
A V Vishal
(Expert) 02 April 2012
You are mistaken fr the AY 2005-06 viz. pertaining to the year ended 31.3.2005 the limitation runs till 2011-12 viz year ended 31.3.2012. Hence the notice is valid
Guest
(Querist) 02 April 2012
Thanks for confirming that.Lets see what reason they have for issuing a notice just on deadline.
C. P. CHUGH
(Expert) 03 April 2012
Well though Notice is well within the limitation period, AO issuing notice must have obtained prior sanction of Addl CIT of the Range before issuing notice. Why it so surprising, it is well known practice of the income-tax department to issue notices on the last day of limitation expiring.
C. P. CHUGH
(Expert) 07 April 2012
You are just required to comply with the notice by filling return. Once you have complied the notice, you may approach AO and ask for copy of reasons recorded for escaped income. Generally it could be a result of certain AIR information which are in the possession of ITD for some time but due to scarcity of time/lack of willingness, they have taken up the information for verification now, since it was time barring. Do not wonder if you receive similiar notice Next 31st March for 2006-2007 when it would be time barring.
R.V.RAO
(Expert) 07 March 2014
agree with sri vishalji and sri chughji
