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aj (prop)     03 June 2011

Discarding the proprietorship

My father has been running business in my name since 4 yrs while i was busy in my education. this has been done with my full knowledge and acceptance. however there have been more than few show cause notices from IT dept regarding some penalty. i am kept unaware about the financials of the business and have no say in its day to day operations. Despite my trying to intervene and get things on track. i want to let go the proprietorship but my father wont let me transfer it in his name. is there a way in which i can just alienate myself with the business? also i am starting my job now so will there be any trouble in business is continued in my name?


 3 Replies

prabhakar singh (advocate)     03 June 2011

Do you have a pan card? you did not tell. have you signed business papers any time or several times??you did not tell. have you filled returns of business any year or several years???you did nit tell.What kind of penalty and what kind of notices the ITO has served upon you????you did not tell.

Sorry!in absence of facts no help can be extended.

Just one fact i can reply that since you are going to join a job you can not do a business ,better pack it or invite some more trouble!!!!!!!!!

To have more come back with detailed facts.

aj (prop)     04 June 2011

Yes i have a PAN card and my father has been filing IT returns on my behalf since past 4 yrs. further i have signed business papers such as ITR, Cheque. The IT notice i have mentioned are regarding some scrutiny case for the returns filed. already a penalty of 50000 has been deposited in my name by my father but there is yet another summon for financial year 2008-09. Can these IT notice have any effect on my credibility in future?

Also could you please throw some light on what legal action arise from continuing running business while doing a job.

prabhakar singh (advocate)     04 June 2011

Before I.T.O. yor credibility is always a question now as you are receiving notices every year and your returns are always attracting scrutiny.

 As regards to your job,let it be known to you that your service agreement will provide that you shall not do any other vocation during the job,while a business in your name would be going,then if disclosed ,trouble will start or not,keeping you terminated ,even a recovery of pay paid to you may proceed.

GOD has GIVEN us 2 years but only 1 mouth,so that we should listen more and speak less. 

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