• Welcome to itatonline.org Forum.
 

News:

ITAT issues guidelines for stay of demand.

Main Menu

CONCEALING OF INCOME

Started by Vinay Surana, September 20, 2012, 10:33:33 AM

Previous topic - Next topic

Vinay Surana

Dear Expert Members.

We are trading business in commodities.

In 2010-11 we failed to disclose an Income of 13.00 lacs approx(It was not intentional,some technical mistakes happened in software).Till this date we have not received any communication from income tax dept nor any notice or demand from dept asking to pay tax for it.

Now what happens if i dont want disclose further also & if i want to disclose can i disclose in the year 11-12.

What will be the consequences.Please revert back as soon as possible. :-[ :-[

brett_lee38

you can file revise return if the time is not expried if the time is expired then ask for 154 before the AO in respect of your intimation and you can disclosed there also

pawansingla

What is the need. If case does not come under scrutiny till sept , no one will come to one. Chances of getting selected in scruinty are very rare if your assessee does not fall in any of the specified category. This is india.

vsaiyar

the querry is raised now - it is presumed that the time limit for revising the return has expired.  The AO cannot now issue a notice under sec.143(2) since time limit for issue of notice also has expired.  You can make an application to the CIT under revisionary provisions bring to the notice of the CIT the error and offering the amount for taxation. 

vsaiyar

The two questions raised are: If the income is not disclosed what happens.  If ever the omission is detected then the assessment could be reopened within 4 years.  If not detected by the AO then the said amount remains unaccounted and amounts evasion of tax since you are now aware of the omission.  Whether the said amount could be offered as income for 2011-12 it is submitted that since income does not pertain to this year, if offered for taxation will be taxed in 2011-12, but liability for 2010-11 will continue.

mnandgaonkar

You have not referred to the period as to whether it is FY or AY. However from the body of the query it appears to be financial year. Based on this assumption, in my opinion  you should advise the assessee to revise the return for AY 2011-12 (FY 2010-11). As stated by you the error was due to software glitches so you have strong case to avoid levy of  penalty for concealment after revising the return.

If return is not revised then the assessee  will be open to proceedings U/s 148 rws 147 and resultant penal consequences.