One of my friend filed the return for the income tax and got the refund . The case got selected got scrutiny and they have disallowed the amount which is almost 6.5 lacs.they have stated that under reporting due to misreporting of an income which is 200%. I have paid the tax and interest agreeing to them as I am not aware of it. After that they have initatiated penalty of 200% which is almost 4.08 lacs. whether there is any chance of prosecution. Most of the things are misreported. I am salary assessed . Some CA,s are telling that…
► Read Answer
Assessee is private limited co and during the course of assessment proceedings AO made the addition U/SEc.14A, Write off advances to 100% subsidiary co established in China and non submission of receipt of donation. CIT A confirm all the additions . ITAT has reduced the disallowance U/sec. 14A to the extent of exempt income. and confirm the addition made by the AO . on the ground of writeoff of advances to subsidiary co on the ground that the assessee failed to substantiate the claim made by the co. AO has levied the Penalty U/SEc. 271(1) (c) for furnishing of inaccurate…
► Read Answer
Assessee is an individual. Search U/Sec. 132 has been conducted on 4.11.2017. Assessee has not filed the Return of Income for A.Y. 2017-18 U/SEc. 139(1), however the time limit for furnishing the Return was 31.03.2018. Meanwhile the assessee has received the Notice U/Sec. 153A and therefore the assessee has filed the Return of income for A.Y. 2017-18 in response to Notice U/SEc. 153A on 25.03.2018 disclosing the income at Rs. 4750000.00 which included income for LTCG and STCG. The assessing officer has completed the assessment U/SEc. 153A r.w.s 143(3) by making an addition of 675000.00 on account of diffidence between…
► Read Answer
There is default u/s 271(1)(b) . The assessment was completed u/s 147 r.w.s 144B. Apart from the reasonable cause for did not respond to the notices issued since the assessment has been ccompleted u/s 147 r.w.s 144B , penalty u/s 271 (1)(b) is not leviable. Please give case laws of court/ITAT on the point.
► Read Answer
Dear Experts, The Assessment Unit of the Income Tax Department made an assessment for the Assessment Year 2018-19 under section 147 read with section 144B on 14.02.2024 and a Demand of Rs 1,62,256 is raised. The demand is raised without giving credit of the self assessment tax paid on 07.04.2023 at the time of Filing Return of Income U/s 148 i.e. Rs. 60,917. Rectification petition for credit of Rs. 60,917 has been filed with the Jurisdictional Assessing Officer and is pending for processing. Balance Demand Rs. 1,01,339 (1,62,256 – 60,917) paid within 30 days of demand raised. Now, I am…
► Read Answer
Sir, A Rural agricultural land has been sold in AY 2016-17 for 60lakhs for which consideration received in cash and the same is deposited into seller bank ac. Now received a notice from IT regarding the above cash deposit. in reply to IT : If i mention, the cash deposit of 60L pertains to receipt of cash for sale consideration, do it attract any negative impact or any disallowance or u/s 269s/st ? I request you to please give me any suggestion. thanks, Shravan
► Read Answer
An assessee had not filed his return of income for the Assessment Year 2018-19 voluntarily under section 139 in spite of having taxable income. The Return of Income was filed only in response to notice under section 148. But the assessee inadvertently escaped Saving Bank Interest and availed deduction under Section 80TTA. The Assessment Unit made assessment under section 147 read with section 144B and added Saving Bank Interest and also allowed deduction under section 80TTA. The Tax demanded under section 156 was duly paid within 30 days but the time limit for application u/s 270AA (Immunity from Imposition of…
► Read Answer
An assessee had not filed his return of income for the Assessment Year 2018-19 voluntarily under section 139 inspite of having taxable income. The Return of Income was filed only in response to notice under section 148. But the assessee inadvertently escaped Saving Bank Interest and availed deduction under Section 80TTA. The Assessment Unit made assessment under section 147 read with section 144B and added Saving Bank Interest and also allowed deduction under section 80TA. The Tax demanded under section 156 was duly paid within 30 days. The Assessment Unit levied 50 % Penalty under Section 270A on the Tax…
► Read Answer
Is levy of penalty is justifiable on disallowance u/s 36(1)(va) after terming it as Under reporting of income.
► Read Answer
What arguments I can take in Reply to Penalty Notice u/s 270A. My case was pending before CIT (A) on issue of disallowance u/s 36(1)(va). Subsequently my appeal was dismissed by CIT (A) in view of judgement by Hon'ble SC in case of Checkmate Services Pvt Ltd. Now the Income Tax Department has initiated the Penalty Proceedings u/s 270A for under reporting of income.
► Read Answer
Regarding the penalty