• Income tax scrutiny and appeal process

My mom received an income tax scrutiny notice 3yrs ago for FY 2015-2016 and my CA replied on the notice explaining the transactions, etc. She is a housewife and has never worked so did not have any income and as a result never filled taxes. In the year 2011 my father passed away and all his properties were transferred to my mom as she is the legal heir. She then sold all the old properties and bought new one using the same funds. The assessing officer did not give any extemptions that the CA had factored in for the FY 2015-16 and issued and order for 20lacs tax to be paid. The CA then filled for appeal to CIA and my mom's bank account was frozen. The funds in the account have been taken by the income tax department (2lacs). The appeal case is ongoing for the same. 2mnths ago she received another notice for the FY 2014-15 and the CA replied on the CA. The assessing officer passed an order for 10lacs to be paid. An appeal has been filled against this order as well. But the assessing officer keeps sending notices and calls threatening us if we don't pay the entire amount. What can we do about this? She does not have the funds to pay.
Asked 6 months ago in Income Tax from Mumbai, Maharashtra

Have to meet AO and explain the scenario, case can not be left unsolved for many years. 

Rajkumar Wagh
CA, Kolhapur
45 Answers

Not rated

First of all let's understand the situation your mother received your father's property on his death as she was his legal heir so on this no income tax is required to be paid.

Second when your mother sold the immovable property of your father she was required to pay capital gain tax on same but she claimed exemption against same so you need to tell what type of capital gain it was and what exemption she claimed that was disallowed?

What are grounds on which appeal has been filed for 2015-16? If you are going for appeal before CIT(A) you need to pay atleast 15% of the demand to request a stay on the remaining demand before CIT(A). if you don't do that and if the demand amount is higher there can be such problems.

What is the ground on which assessment for 2014-15 has been reopened you need to ask for the grounds and provide it to me then only I can help or suggest anything.

In extreme situations like no reply from assessee or non payment of demand they can freeze your property but it happens in some rare cases.

You can mail me details of you want any assistance.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Naman Maloo
CA, Jaipur
1808 Answers
16 Consultations

5.0 on 5.0

If  the demand is not paid within the time mentioned in the demand notice, the individual will be liable to pay simple interest at 1% per month.  Once your tax officer assign the task to the recovery officer, he can attach and sell your property.  You need to inform your officer, that 20% demand is already attached and that she does not have further funds for payments. She can file a stay application for stay of demand before ITAT by submitting undue hardship is caused by phasing payment.  Ask your CA to meet the CIT (A) and expedite the matter. Once a favorable order is issued he won’t have any right to chase demand.  For each year separate application for stay is to be done                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        


Jasmina Jain Shah
CA, Greater Mumbai
336 Answers
4 Consultations

5.0 on 5.0

First of all get a good experienced CA who can handle all of your stuff. He himself has filed your return & now he is not able to handle the case.

Chirag Maru
CA, Raipur
158 Answers

5.0 on 5.0

- Why the exemption is not allowed in 15-16 and what is the reason for notice for 14-15??

Vivek Kumar Arora
CA, Delhi
2789 Answers
128 Consultations

5.0 on 5.0

Dear Sir,


Hope you are doing well !!


Please share the copy of notice for appropriate reply.


Payal Chhajed
CA, Mumbai
2601 Answers
34 Consultations

5.0 on 5.0



Details of case to be studied along with notice,for apt reply.


I highly suggest to get in touch and discuss the issue with CA in person.


Hope it helps.

Swati Agrawal
CA, Mumbai
1146 Answers
5 Consultations

5.0 on 5.0

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