Summon under section 131(1A)
I received a summon under section 131(1A) for attendance and to produce a) books of accounts, b) statement of all bank accounts, c) details of all properties acquired during the period 1 Apr 205 till date. I won't be able to present myself on the required date, as I am currently out of India (NRI, working in Gulf). My question is;
1. Can I seek an extension for this or can I authorize someone to attend on my behalf?
2. I have purchased a property of around 36 lakhs in 2016 (payment made through NRE account). Is it normal to receive this kind of summon, for such transaction?
Grateful for your guidance on the best approach to handle this, please
Thanks and regards,
Asked 8 months ago in Income Tax from Saudi Arabia
1) You may seek an extension for valid reasons and such extension is normally granted but you may not get further extensions. If the summon mandated to you in person, you will have to appear in person and make your submissions under oath. If the summon permit you to get represented by your Authorised Representative (AR), your AR may represent your case, with proper Power of Attorney. Even if you are mandated to appear in person to make your submissions under oath, your AR may accompany you and be present during the proceedings.
2) If you have purchased the property, you normally get a notice for confirming the transaction and submitting your sources for such transaction. Such submission can be made through the efiling portal after logging in.
A meaningful advice on further course of action can be given if the notice is shared.
1. If the notice specifically mentions your presence, it would be mandatory. Extension cam be granted on genuine causes.
2. This should not be a matter of worry. You will have to prove the sources of income used for purchasing the property. Please take all the relevant documents with you at the time of such attendance at the Income tax office to avoid future proceedings.
Yes, you can authorise someone as well giving the reason. or can opt for online scurtiny.
Generally if its more than 50lakhs, we receive notices, but in your case the payment is through NRE A/C, may be due to that you have received the notice
Thanks for taking out time to provide your expert opinion on my case. As suggested, I will request for date extension.
And with regard to the suggestion of Mr. Kumar, although I have not received any notice for confirming the transaction from the authorities, should I do the efiling now?
By the way, how can I opt for online scrutiny, as suggested by Ms. Jain.
And as requested, I am sharing the notice that I received; and since there is no provision of attaching the document here, I am reproducing the same, by typing hereunder;
Summons to the Assessee/Witness under section 131 (1A) of the Income tax Act, 1961
Whereas your attendance is required in connection with the proceedings under the Income tax Act in your case, you are hereby required to attend my office on 24th Jan 2018 personally to record a statement on oath and to submit the following documents.
i. Please produce books of accounts, if any maintained by you for the F.Ys 2015-16, 2016-17 & 2017-18 (to till date).
ii. Please produce the statements of all bank accounts held by you from 01.04.2015 to till date.
iii. Please produce the details of all the properties purchased by you during the F.Ys 2015-16, 2016-17, & 2017-18 (to till date).
iv. Please explain the sources for acquisition of the above properties.
v. Please furnish the copies of Returns of Income filed by for the A.Ys 2016-17 and 2017-18.
Without prejudice to the provisions of any other law for the time being in force if you intentionally omit to so attend and give evidence or produce the books of account or documents, a fine up to Rs. 10,000/- may be imposed upon you under section 272A(1)(c) of the Income tax Act, 1961.
Asked 8 months ago
You should write a letter to the assessing officer (ward will be mentioned in the letter) that I am outside the country due to my job and thus the concerned person will be my authorised representative. And make a request for giving online facility. If you are based from Kolkata i can handle the same.
Moreover, please check in the income tax site through your user id and password. If you have not registered in the income tax site yet, register it and then check it. That option is already there.
Again , if you have not filled the return yet, please file it. You can get in touch with me for detailed discussion of your require
1. Yes, you will have to attend tax department in person. However, you can ask for extension and generally extension are granted for genuine reasons. In your case, extension should not be a problem. You should also get your CA accompanied with you.
Practical advice would be to ask a CA to meet the concerned officer and get the extension or exemption from personal presence.
2. It's not very common to receive the summon. But at the same time, it's not a a cause of worry as well. You can explain the source of income.
Also along with the request for extension, you should file all the documents as well.
The summon makes it mandatory for you to be personally present and submit answers on oath. I suggest the following:
1) If there is still time for attending the personal appearance, try to attend. If the time is too short or the time is already over, pl. write to the assessing officer to grant extension of time for your personal appearance.
2) Keep ready all the documents and information as required.
3) Pl take the help of a CA at the place where you are required to attend.
4) Pl file your returns, if not filed already. Also check for compliance related issues in the e filing portal, after logging in. If there are any issues to be attended to, please respond to them in the efiling portal.
5) Pl co-operate with the Department by furnishing all the relevant documents and information truly and correctly. Non submission or false submission of documents / information may result in penalties.
This requires your presence and an AR cannot represent you. Apply for extension and follow up with all the documents asked for in the notice.
To answer your questions:
1. Yes, you can ask somebody else to appear on your behalf or you can ask for the hearing to be postponed to another date.
2. Such a summon issued in case the Income-tax department has a doubt that you have not filed your tax returns or have concealed income so as to evade tax.
It is recommended that if you have not filed your tax returns for the past years, to do so at the earliest.
M.Com., CA, LL.B
CA, Greater Mumbai
It appears that the query has been taken care of by my other colleagues. Please feel free if any part of it has been left unattended.