Received IT notice 147 on 26 March 2016

reassment asked for assessment year 2009-10

I retired as a techer from  a school  on   31 dec 2007. but I forgot to mention in my itr return 2009-10 my GPF, Gratuity  and cummitted pension which I recd in 2008-2009. Now income tax deptt sking reassesment for year 2009-10.
Is there any penality or something more. How I should reply. I am now sr. citizen

regard

surbhi

punengr@yahoo.com
Asked 8 months ago in Income Tax from New Delhi, Delhi
Dear Surbhi,

If you have not shown GPF, gratuity and pension then Assessing officer can issue the notice. As in your case, facts of the case are weak, only option available is argue of legal and technical ground such as

whether AO has taken the prior permission from appropriate authority before issuing the notice.

Does he has reason to believe that income has been escaped from assessments.

Date of notice is not important. Date of receipt of notice is important. Have you received on 26 March?

Further department can levy penalty, interest etc.

Please let us know, if your require any assistance on the above.

Thanks and Regards,
CA Abhishek Dugar
caabhishekdugar@gmail.com
Abhishek Dugar
CA, Mumbai
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?Notice for assessment or reassessment U/S 148 of the Income Tax Act, 1961
The power of assessment or reassessment of any income chargeable to tax that have escaped assessment has been provided under section 147 r w s 148 of Income Tax Act of 1961. If the assessing officer has the reason to believe that any income chargeable to tax has escaped assessment then the assessing officer may subject to the provisions of section 147 to 153 assess or reassess such income.

What is reason to believe: Before issuing any notice U/S 148 the assessing officer must have reason to believe that any income chargeable to tax has escaped assessment. Reason to believe can not be a reason to suspect merely. There must be a direct nexus between the material coming to the notice of the assessing officer and the formation of the belief that there has been escapement of income of the assessee from assessment in a particular year. The material for formation of belief must be relevant and not vague. The assessing officer must record reasons in writing before issuing notice u/s 148. Mere a reason recorded that “there is a huge concealment of income’ or ‘For further investigation’ without any specific instance of entries or material relevant to the assessee will not constitute a valid reason as it is vague and general in nature.

Who can issue notice U/s 148: Section 151(1) provides that in a case where an assessment under sub-section (3) of section 143 or 147 has been made for the relevant assessment year, no notice shall be issued under section 148 by an Assessing Officer, who is below the rank of Assistant Commissioner or Deputy Commissioner, unless the Joint Commissioner is satisfied on the reasons recorded by such Assessing Officer that it is a fit case for the issue of such notice] :

Provided that, after the expiry of four years from the end of the relevant assessment year, no such notice shall be issued unless the Chief Commissioner or Commissioner is satisfied, on the reasons recorded by the Assessing Officer aforesaid, that it is a fit case for the issue of such notice.

In a case other than a case falling under sub-section (1) of section 151, no notice shall be issued under section 148 by an Assessing Officer, who is below the rank of Joint Commissioner, after the expiry of four years from the end of the relevant assessment year, unless the Joint Commissioner is satisfied, on the reasons recorded by such Assessing Officer, that it is a fit case for the issue of such notice.



What to do when notice u/s 148 is received: 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. The assessee should ask specifically assessing officer to pass a speaking order by disposing off the objections?.

Penalty

Wilful failure to furnish returns of fringe benefits under section 115WD/115WH or return of income under section 139(1) or in response to notice under section 142(1)(i) or section 148 or section 153A (non-cognizable offence under section 279A)—

(a) where tax sought to be evaded exceeds Rs. 1 lakh (Rs. 25 lakh w.e.f. 1-7-2012)6 months to 7 years

Penalty amount- No limit

(b) in other cases 3 months to 3 years (2 years w.e.f. 1-7-2012) Penalty amount - No limit -



? Our professional fees in this matter will be Rs. 25000/-

Thanks & Regards
CA. SK AGARWAL
+919212000715
Shiv Kumar Agarwal
CA, Delhi
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Notice under section 147 of Income Tax Act, 1961 is issued only in case the assessing officer has reason to believe that some income has been escaped assessment. Gratuity and commuted pension both are taxable to  some extent if you were non-government employee. If you had not declared the same while filing your ITR for the A.Y. 2008-09, this can be treated as concealment of income and penalty under section 271(1)(c) may be imposed upon you which can range from 100% to 300% of tax sought to be evaded besides payment of Income Tax and interest thereon. You should immediately contact a tax professional (CA) in your city and proceed.
Regards, 
CA Ankit Adhyaru
Ph. +91 9898789180 
Ankit Adhyaru
CA, Ahmedabad
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Dear Surbhi,

Since you yourself know that you had missed out on the above mentioned taxable amounts in the Income tax return, so now you are left with only 2 options:

1. Pay the respective tax with interest thereon and may argue for waiver of penalty on the grounds that it was not concealment of income.

2. Challenge the validity of the order, the basis on which the AO has issued you the notice and is unnecessarily causing you hardships.

Choice is yours, but whatever stance you take please stick to it.

In case you need any assistance or technical help in taking the matter ahead with the authorities, feel free to get back.

Trust this clarifies your query. 

Feel free to get/ call back for any further clarifications. 

Thanking You. 

Regards,
CA Rohit R Sharma
BCOM, ACA, LLB - GEN, CERT. FAFP
Rohit R Sharma
CA, Mumbai
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Sir you need to attend the department self or through an authorised representative. We need to check what type of notice you got whether it is  notice U/s. 147 or other. Then only we can answer.

You can go to the department and have clarifications for the same.
Shyam Sunder Modani
CA, Hyderabad
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Your case will be reopened and then you need to declare all your incomes including the one you have not declared by filing revised return U/s. 148 of the Income Tax Act.. The return then will submitted with covering letter stating that return is filed in response to Notice U/s. 148.

Your case will also be selected for scrutiny by issuing you Notice U/s. 143(2) of the It Act,1961. You are suggested to consult a CA near your place for further processing.
Shyam Sunder Modani
CA, Hyderabad
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OK
Vishrut Rajesh Shah
CA, Ahmedabad
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Section 147 assessment are done  when the AO has the reason to believe that some income has escaped the assessment . So for this purpose they issue the notice and  before issuing the notice the AO prepares the Satisfaction note and get it approved by the Joint commissioner or Commissioner as the case may be .  So it is necessary to obtain the copy of the satisfaction note before commenting on this issue .
We are Delhi based CA and you can contact us on - prakash@psc.co.in
Prakash Sinha
CA, Delhi
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