Tax notice u s 148
8 months ago
Fy2017-18, I withdrew FDRs from previous years & then reinvested in FDRs. It happened many times during year. In between few times, some money was transferred to & from my mother account. ITO is taking cumulative value of FDRs rotated and asking for source. I have given bank statement to show source being earlier FDRs but he is asking same again. Now waiting hear from ITO. What worst can happen?
A.Dear Client,
Section 147 of the Income Tax Act provides that “If the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment for any assessment year, he may, subject to the provisions of sections 148 to 153, assess or reassess such income of the assessee and also any other income chargeable to tax. Sec 147 empowers the Assessing Officer (AO) with the power to reopen the assessment proceedings whenever the AO finds that the income of an assessee has escaped assessment, Notice under Section 148 is issued by the income tax officer to reassess the taxpayer's income tax return (ITR) if they disagree with the taxpayer's assessment and believe that some income has not been properly assessed. To respond to the notice u/s.148, you can either file a return of income or provide a written reply to the Assessing Officer within 30 days of the notice explaining all the relevant details of your income and expenses, including any supporting documents. An assessment or reassessment under section 147 must be completed within 9 months from the end of the financial year in which notice under section 148 was served. Check the reasons behind notice u/s 148 as recorded by the AO for the issue of notice for an income escaping assessment. If it appears to you from the notice sent u/s.148 requires more clarification, you need to respond to the notice of AO attaching a fresh computation of income and supporting documents that reveal the source of said FDR. An assessee must respond to the notice within the specified period, which cannot be less than 30 days from the date of service of the notice failing which the AO may impose a penalty under section 271F of the Income Tax Act, 1961. You may consult with a CA for further clarification before responding to the notice of ITO.
Section 147 of the Income Tax Act provides that “If the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment for any assessment year, he may, subject to the provisions of sections 148 to 153, assess or reassess such income of the assessee and also any other income chargeable to tax. Sec 147 empowers the Assessing Officer (AO) with the power to reopen the assessment proceedings whenever the AO finds that the income of an assessee has escaped assessment, Notice under Section 148 is issued by the income tax officer to reassess the taxpayer's income tax return (ITR) if they disagree with the taxpayer's assessment and believe that some income has not been properly assessed. To respond to the notice u/s.148, you can either file a return of income or provide a written reply to the Assessing Officer within 30 days of the notice explaining all the relevant details of your income and expenses, including any supporting documents. An assessment or reassessment under section 147 must be completed within 9 months from the end of the financial year in which notice under section 148 was served. Check the reasons behind notice u/s 148 as recorded by the AO for the issue of notice for an income escaping assessment. If it appears to you from the notice sent u/s.148 requires more clarification, you need to respond to the notice of AO attaching a fresh computation of income and supporting documents that reveal the source of said FDR. An assessee must respond to the notice within the specified period, which cannot be less than 30 days from the date of service of the notice failing which the AO may impose a penalty under section 271F of the Income Tax Act, 1961. You may consult with a CA for further clarification before responding to the notice of ITO.
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