148 notice
Querist :
Anonymous
(Querist) 16 October 2011
This query is : Resolved
Pl. advise
what are the consequence of notice received u/s 148 of income tax act.
a) what should need to be done upon receipt of 148 notice
b) what are the failure on comply with reply to the notice
c) what are the penalty on finding the AO upon concealment of facts; after passing an order u/s 139
Raj Kumar Makkad
(Expert) 16 October 2011
In famous judgment titled [2000] 113 Taxman 331 (SC), it was held that when an assessee challenges a notice to re-open under section 147 on the ground that no reasons under section 148 had been recorded or disclosed, the Court must call for and examine the reasons, and, in fact, ordinarily, the reaÂsons are set out by the respondents to the writ petition in their counter. The High Court also did not appreciate that if the appellant had already been served with a notice under section 148 and had complied therewith by filing a return, it was entitled to contend that no second notice lay and also to submit that, in any event, the second notice was barred by time.
Vineet
(Expert) 20 October 2011
1. you have to file a fresh return in response to notice within stipulated time. thereafter you can ask for reasons recorded for reopening your case.
2. if you fail to comply, AO in addition to levy penalty for default, will proceed to assess your income ex-parte on best judgement basis.
3. Assessment order is passed u/s 143(3). If the assessed income is more than returned income, the differential amount may attract penalty u/s 271(1)(c) for concealment or furnishing inaccurate particulars.
soumitra basu
(Expert) 07 November 2011
You should file a return in response to notice u/s. 148 and ask for the reasons for reopening. however, you can also inform that the original return should be treated a return in response to notice. Later on you can put your objection on the reasons.
