Vijay (Management Consultant) 31 October 2016

Response to notice under sec 148 by income tax ao

Hi Experts,

Four years ago, I have entered into a sale deed. But, I have never received any sales proceeds and the registration is in a civil litigation. Now, there has been Notice under section 148 from Income Tax Officer to submit a re-assessment. As such, there is no capital consideration and there is no question of paying Income Tax. I also want to take this opportunity to get the investigation conducted by Income Tax Department to establish the fact that there is no monetary consideration. I am not sure if all of this is possible. Please advise me the options I have to tackle this situation and to utilize this as an opportunity to my advantage.

Many thanks in advance for your valuable feedback and direction.

Thanks

Vijay

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4 Replies

Akash Kapoor (Owner at Shramsamadhan India) 31 October 2016

It depends whether the "Recorded Reason" for opeining reassesment includes that sales transaction or not. In the Panchnama that you sign with the Income Tax Officer after your assessment and before an order contain all the points of hearing. So income tax officer will only include this in order if the same is present in the "Reason Recorded".

So you have to keep this in mind see this https://www.shramsamadhan.com/

balas (Chartered) 31 October 2016

Hello Vijay,

The notice u/s 148 should contain the details about the income which is being subjected to assessment / reassessment. I guess the notice contains the transaction you are referring to which is subject matter of civil litigation and contains reason for serving the notice.

Having served with the notice, you have the opportunity to put forward your response to the notice with details of civil litigation and its status (centering around the income which is subjected to assessment / reassessment). You do respond to the notice served to ensure your side is presented well with details.

Rgds

Balaji Srini FCA., LL.B.