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Kaycee (Self Employed)     19 October 2013

Non filing of return

Dear All,

Kindly enlighten!!!.Facts as Follows,

*TDS duly deducted @ 10%.(Code-TDS-94J,Sec.194J).

* Return NOT filed in time.(Lapse since FY 2009-2010 onwards).

* Notice received from the IT dept, asking for reasons for not filing the IT return.

* Visited office with TDS,ITO considers it as CONCEALMENT>

*States that PENALTY UNDER CONCEALMENT applicable.

* Reason for not filing the return on time is due to medical reasons.

*Income around Rs: 5.00 Lacs per year.

As per CA/Tax consultant belated return can be filed and a FINE of Rs:5000/- per year applicable.

As per ITO concealment and penalty @100% to 300%.

Kindly advise with case studies please.


 3 Replies

Sanjeev (Lawyer)     19 October 2013

Concealment occurs when you report lesser income than earned so concealment fine does not arise. So the 100-300% penalty question doesnt arise. Non filing of return does not mean concealment. You would need to pay interest on the tax payable if anything is payable after TDS deduction.

Kaycee (Self Employed)     19 October 2013

Hello SIr,

Can you suggest some case diaries/law/section/record etc. please, so as to confront the ITO.


C. P. CHUGH (Practicing Lawyer)     28 October 2013

Section 139 of the Income tax act requires, from every person whose income for a year is more than the maximum amount not chargeable to tax, to file his return of income in appropriate form on or before the due date specified in sub section (1) of section 139.  Sub-section (4) of section 139 allows a person to file his return before the end of assessment year subject to provisions of section 234 A, 234B and 234C without attracting penalty u/s 271F and by the end of next AY after making himself liable for penal action u/s 271F.  Meaning there by that one can file his return of income with in one year from the end of year for which a return is sought to be filed  without penalty u/s 271F and within two years after payment of penalty u/s 271F.


Contention of AO in cases where the statutory period of filling of return has already lapsed and a person, having income in excess of maximum not chargeable to tax, has failed to file his return.........................he shall be deemed to have concealed his income and is liable for penalty u/s 271(1)(c), and the same has been held to be correct by judicial pronouncements.

You are advised to immediately file your return of income for the years for which statutory period has not lapsed and you can still file the return.  For the years, where such priveledge is not with you, wait for the notice u/s 142(1) from AO and furnish your return in response to notice, making full disclosure of your income and taxes.  

Consult a good tax lawyers who can help you manage escape penal actions.


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