• If income tax can ask to furnish the P-L of the future

My IT return for the AY 2018-19 is under scrutiny. I have been answering the questions by Income Tax since January 2020. I was expecting the assessment order u/s 143 prior to [deleted] as it is the end of 18 months from the end of AY 2018-19. But I have received again few questions !! They are asking me to provide the P-L acct of FY 2018-19 and 2019-20, although the scrutiny is related to FY 2017-18. I am confused.
1) To my knowledge there is no extension of the time for finishing the assessment order. As per the law, the assessment order under Sec 143 should finish by [deleted]. But they are going beyond this date by repeatedly asking some irrelevant questions. If [deleted] (18 months from the end of assessment 2018-19) should still be the cut off ??

2) How can they ask the P-L account for FY 2019-20 ? Neither I am required to make a P-L acct under the income tax, nor the time limit granted to file the tax return for the FY 2019-20 is gone !! I do not know how to handle such questions ? Is there any tax law under which I can argue that they should ask me to provide the P-L of the relevant period under scrutiny ?

Thanks
Asked 3 years ago in Income Tax

-unless we have complete details of the case it is difficult to comment.

Vivek Kumar Arora
CA, Delhi
4825 Answers
1029 Consultations

5.0 on 5.0

Hi,

 

1. Section 143(1) intimation has to be sent within one year from the end of the financial year in which return is being filed. Since you would have filed this return in in FY 2018-19, the last date was 31 March 2020. However, the timelines have been extended till March 2021 due to COVID.

 

2. Ideally they should not ask for these information and you can respond appropriately saying that these are not available as of now.

 

We can help you in drafting proper submission and handling this inquiry.

Lakshita Bhandari
CA, Mumbai
5687 Answers
908 Consultations

5.0 on 5.0

1. Because of covid the due date for completion of scrutiny has been increased to 31.03.2021.

2. I need to first check the questions raised, reason for which scrutiny was opened and other details before I can comment on this.

3. There is an extension of due date. You can read this: https://www.taxontips.com/did-recent-notification-of-income-tax-on-[deleted]-extended-all-due-dates-to-[deleted]/

 

I can assist you in replying to the scrutiny notice.

We can have a phone consultation to discuss the same in detail.

 

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
4265 Answers
96 Consultations

5.0 on 5.0

Hi

 

 

Income Tax Department is facing acute shortage of the staff, due to lockdown in many States / Cities to restrict the spread of virus Covid-19 ( Corona) infection.

However, there are many powers/functions/options under the Income Tax Act, 1961 which are becoming time-barring on 31st March, 2020, for example:

  • Processing of Returns u/s 143(1)

  • Time barring cases for imposition penalties 

  • Revised and belated filing of income tax returns u/s 139 etc.

 

Dates for completion of scrutiny has been increased to 31.03.2021

 

We can assist. Please have a phone consultation for detail discussion.

Karishma Chhajer
CA, Jodhpur
2450 Answers
29 Consultations

5.0 on 5.0

Hello,

 

The time limit has been extended till 31st March 2021.

Details of the scrutiny case would be required.

It would be advisable to hire a practicing CA to handle the scrutiny case.

 

I hope this answer satisfies your requirements.

 

Regards,

CA Hunny Badlani

Hunny Badlani
CA, Madhya Pradesh
2608 Answers
16 Consultations

5.0 on 5.0

Dear Sir,

 

Hope you are doing well !!

 

1. Due to covid, the due dates for completion of scrutiny has been increased to 31.03.2021

 

2.We need to discuss the same over call.

Please share the copy of notice as well.

 

 

 

 

 

Payal Chhajed
CA, Mumbai
5188 Answers
288 Consultations

5.0 on 5.0

No the last date as of now to complete the scrutiny is 31.03.2020.

Also you cannot now revise return under 139(5) as the due date has expired.

Further you cannot even submit rectification request as rectification rights would be now with AO as you are under scrutiny.

Naman Maloo
CA, Jaipur
4265 Answers
96 Consultations

5.0 on 5.0

Hi

 

Please have a phone consultation for details discussion.

Karishma Chhajer
CA, Jodhpur
2450 Answers
29 Consultations

5.0 on 5.0

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